Abu Dhabi has unveiled significant updates to its real estate legislation as part of its long-term strategy to solidify the emirate’s status as a premier global hub for property investment. These changes, announced by the Department of Municipalities and Transport (DMT), are designed to foster a more transparent, flexible, and sustainable legislative environment that supports developers while safeguarding the rights of investors.

The newly updated framework empowers the Abu Dhabi Real Estate Centre (ADREC) to more effectively regulate the real estate sector. It aims to improve governance standards and maintain a balanced relationship between various stakeholders involved in the market. The changes are intended to ensure the long-term sustainability of jointly owned properties, regulate all real estate-related professions, and clarify contracts and operational procedures, aligning Abu Dhabi’s regulatory model with global best practices.

Key highlights of the real estate law updates include a unified definition of real estate activities, which encompasses sale, purchase, registration, evaluation, management, and operations, ensuring that all sector-related professions are regulated. Additionally, developers will now have the authority to terminate off-plan sale contracts without court proceedings if buyers default, but this will require ADREC approval, facilitating faster and more flexible dispute resolution.

The reforms also introduce Owners’ Committees to replace Owners’ Associations, limiting their role to advisory and oversight duties while professional management firms will take charge of the daily operations of jointly owned properties. Furthermore, a new framework for common areas and shared facilities has been established to promote long-term asset sustainability within real estate projects. Violations and administrative fines will now be governed by a schedule approved by the Abu Dhabi Executive Council, reinforcing accountability within the market.

These changes are expected to significantly enhance investor confidence, diminish legal disputes, and improve the overall efficiency and attractiveness of Abu Dhabi’s real estate market. By clarifying developer rights and instituting stricter professional standards, the emirate is actively working to future-proof its regulatory ecosystem.