These updates are part of Abu Dhabi’s efforts to strengthen its position as a global real estate investment hub by developing a flexible and sustainable legislative environment that supports real estate developers, protects investor rights, and keeps pace with future growth requirements.
The new updates grant real estate developers the right to unilaterally terminate off-plan sales and purchase agreements if the buyer fails to fulfill their contractual obligations, according to specific rules and procedures that the developer must follow to obtain ADRC approval. This does not require recourse to the courts or arbitration. This contributes to implementing a flexible and rapid mechanism to reduce the risk of potential disputes, enhance the efficiency and diversity of the real estate market, and limit investment risks.
The updates contribute to enhancing ADRC’s ability to regulate and supervise the sector efficiently and effectively by establishing rules and provisions that ensure balanced legal and contractual relationships between all parties, while protecting the rights and interests of developers, investors, and owners. Furthermore, they modernize and strengthen regulatory and oversight controls, contributing to raising the level of governance and efficiency of the real estate market in the emirate. The updates focus on developing a comprehensive legal framework that ensures the long-term sustainability of jointly owned properties and common areas within real estate development projects, and on regulating real estate professions, ensuring market governance and protecting investor interests.
The updates include introducing a new definition of real estate activities, encompassing all activities related to the development, sale, purchase, registration, regulation, evaluation, management, and operation of real estate, as well as other activities related to the real estate sector. This contributes to the regulation and management of all real estate professions, and the inclusion of currently unregulated professions within a unified regulatory framework. It also aims to raise the quality, transparency, and attractiveness of the real estate sector.
The updates adopted the formation of “owners’ committees” instead of “owners’ associations.” The formation and work of these committees are regulated by decisions issued by the Chairman of the Department of Municipalities and Transport. The committees’ role is limited to advisory and oversight functions only, while specialized companies are responsible for the operational management of jointly owned properties, ensuring flexibility in their regulation and the sustainability of their facilities and public areas.
The updates also indicated that the list of violations and administrative fines will be determined by a decision from the Chairman of the Department of Municipalities and Transport, contributing to enhancing the efficiency of real estate regulatory mechanisms.