The Department of Municipalities and Transport (DMT) has issued updates regarding the real estate sector in the emirate.
The update is part of Abu Dhabi’s ongoing efforts to strengthen its position as a global real estate investment hub by fostering a flexible and sustainable legislative environment that supports real estate developers, safeguards investors’ rights, and keeps pace with future growth requirements.
The update will enhance the efficiency of regulatory mechanisms and further empower the Abu Dhabi Real Estate Centre to regulate and oversee the sector effectively through clear legal and contractual frameworks. Thes frameworks ensure balanced relationships among all parties involved, while protecting the rights and interests of developers, investors, and property owners. It covers regulatory and supervisory mechanisms, as well as governance standards, increasing the efficiency of the emirate's real estate market.
The key focus of the update includes a comprehensive legal framework that ensures the long-term sustainability of jointly owned properties and common areas within real estate development projects, and regulation of professions related to the real estate sector, ensuring effective market governance, and protecting investor interests.
The update covers a new definition for real estate activities, absorbing all aspects of the development, including sale, purchase, registration, regulation, evaluation, management, and operation of real estate, among other sector-related activities. This helps regulate and manage all real estate professions and brings currently unregulated roles under a unified regulatory framework, thereby boosting the real estate sector's quality, transparency, and appeal.
The update states that developers have the right to unilaterally terminate off-plan sale and purchase agreements if the buyer fails to fulfill their obligations, provided specific procedures are followed by the developer to obtain the approval from ADREC. This eliminates the need to resort to courts or arbitration, enabling a more flexible and rapid mechanism that mitigates potential disputes, enhances market efficiency and diversification, and reduces investment risks.
The update covers the formation of Owners’ Committees instead of Owners’ Associations. The formation and functioning of these committees will be governed by decisions issued by the Chairman of the Department of Municipalities and Transport (DMT), with their role limited to advisory and oversight duties. Specialised management companies will be responsible for the operational management of jointly owned properties, ensuring flexible regulation and the sustainability of shared facilities and common areas.
The update also states that the Schedule of Violations and administrative fines will be defined by a resolution issued by the Chairman of the DMT, following the approval of the Abu Dhabi Executive Council.
