The Department of Municipalities and Transport (DMT) in Abu Dhabi has released updates concerning the real estate sector in the emirate. This update is part of Abu Dhabi’s ongoing initiatives to solidify its status as a global real estate investment hub by creating a flexible and sustainable legislative environment that supports real estate developers, protects investors’ rights, and adapts to future growth demands.
The update aims to enhance the efficiency of regulatory mechanisms and further empower the Abu Dhabi Real Estate Centre to effectively regulate and oversee the sector through clear legal and contractual frameworks. These frameworks establish balanced relationships among all parties involved while safeguarding the rights and interests of developers, investors, and property owners. It encompasses regulatory and supervisory mechanisms as well as governance standards, thereby increasing the efficiency of the emirate’s real estate market, Abu Dhabi Media Office reported.
Comprehensive legal framework for sustainable properties
A key focus of the update is 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 professions related to the real estate sector, ensuring effective market governance and protecting investor interests.
The update introduces a new definition for real estate activities, encompassing all aspects of 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, thus enhancing the quality, transparency, and appeal of the real estate sector.
According to the update, developers have the right to unilaterally terminate off-plan sale and purchase agreements if the buyer fails to meet their obligations, provided specific procedures are followed by the developer to obtain approval from ADREC. This change eliminates the need for courts or arbitration, enabling a more flexible and expedited mechanism that mitigates potential disputes, enhances market efficiency and diversification, and reduces investment risks.
The update also addresses the formation of Owners’ Committees instead of Owners’ Associations. The establishment 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 confined to advisory and oversight duties. Specialized management companies will be responsible for the operational management of jointly owned properties, ensuring flexible regulation and sustainability of shared facilities and common areas.
Finally, the update 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.
