Abu Dhabi Announces New Real Estate Regulations

Abu Dhabi's Department of Municipalities and Transport (DMT) has released updates regarding the real estate sector in the emirate. The major 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. It also regulates real estate professions to ensure effective market governance and protect investors.

According to Abu Dhabi Media Office, 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. As per the update, developers have the right to unilaterally terminate off-plan sale and purchase agreements if the buyer fails to fulfil their obligations, provided specific procedures are followed by the developer to obtain the approval from ADREC.

Also, owners' committees will be formed instead of owners' associations. The Chairman of the Department of Municipalities and Transport (DMT) will issue decisions governing the formation and functioning of these committees.