en.Wedoany.com Reported - The Abu Dhabi Department of Municipalities and Transport recently issued four administrative decisions, formally implementing the Real Estate Sector Regulation Law amended by Law No. 2 of 2025. The new regulations focus on tightening restrictions on fund withdrawals for development projects before 20% completion is achieved. They also establish statutory guidelines for owners' associations and common property management, aligning Abu Dhabi's real estate market governance with international standards.
Decision No. 24 of 2025 establishes a strict withdrawal control mechanism for project escrow accounts. Before reaching the critical milestone of 20% project completion, developers must submit bank guarantees and obtain cost estimate approvals to access funds. This measure directly restricts the disorderly use of presale funds, ensures construction funds are used exclusively for their intended purpose, and reduces the risk of stalled projects faced by investors.
Decision No. 25 of 2025 establishes a management framework for common property and shared facilities, clearly delineating the responsibilities of developers, property management companies, and property owners. By approving a unified owners' association charter, the new regulations define the maintenance pathways for public facilities. Furthermore, for scenarios involving the cancellation of unit resales, the policy specifies compensation ratios, refund deadlines, and administrative procedures, providing a quantitative basis for market transactions.
Rashid Al Omaira, Director General of the Abu Dhabi Real Estate Regulatory Authority, pointed out that this set of implementation tools aims to adapt to market dynamics by introducing flexible regulatory means, with the goal of establishing balanced contractual relationships. According to publicly available information, Abu Dhabi's real estate sector is experiencing rapid expansion. The 2025 amended law significantly strengthens the protection of rights for cross-border investors compared to the previous version.
The implementation of these administrative decisions mandates collaboration among developers, property management companies, and owners' associations within a unified legislative framework. This structural governance not only reduces legal disputes between developers and property buyers but also directly enhances Abu Dhabi's capital attractiveness in the international real estate market by increasing market transparency.
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