Abu Dhabi’s real estate sector has taken a significant step toward greater maturity with the issuance of Administrative Decision No. 25/2025 on 28 February 2026. Titled “Regulation of Ownership and Controls of Use and Management of Real Estate, Parts and Common Facilities in the Emirate of Abu Dhabi,” this landmark measure provides much-needed operational detail to the existing legal framework for jointly owned properties.
The Resolution introduces comprehensive rules on governance, financial controls, service charge regulation, and disclosure requirements. It aims to enhance transparency, accountability, and investor protection while aligning Abu Dhabi’s regulatory environment with international best practices. Developers, property management companies, and individual unit owners will all feel its impact.
This Article is a Part of our Legal & Regulatory Framework in UAE Real Estate Blogpost.
Key Provisions of the Resolution
The Resolution builds on the foundational framework by adding practical, enforceable mechanisms across several critical areas:
Strengthened Owners’ Committee and Management Systems
The Resolution fleshes out the owners’ committee framework with detailed operational content. It defines three management systems, namely:
- Building;
- layer; and
- Complex
that govern relationships between unit owners, management companies, and developers.
It specifies the required contents of each system, the approval process by the Abu Dhabi Real Estate Centre (ADREC) including grounds for refusal, grievance and appeal timelines, and rules for resolving conflicts between overlapping systems. The Resolution also clarifies what constitutes common parts in layer schemes and complex plans, while setting a high threshold of 95% of total contribution shares (or a court order in specified cases) for terminating or cancelling a stratified or complex plan.
Mandatory Appointment of Management Companies
Developers must appoint a specialised, ADREC approved management company within 30 days of delivering the first unit to an owner. Appointment agreements are generally limited to three years unless ADREC grants approval for a longer term.
To ensure accountability, ADREC can require accredited companies to provide bank guarantees or professional indemnity insurance to cover potential damage to common parts resulting from negligence or default.
Rigorous Service Charge Regulation
All service charges now require mandatory pre-approval by ADREC. No fees not approved are deemed illegal and unenforceable. Management companies and developers are prohibited from imposing additional charges beyond those approved, and payers have a statutory right to recover any unapproved amounts.
Developers remain responsible for service charges on unsold units (and any units where they have contractually assumed the obligation). Annual service fees must be payable in monthly or quarterly instalments; lumpsum annual demands are no longer permitted. Unpaid service fees create a lien on the unit that survives ownership transfer.
Similar approval requirements apply to complex fees charged by master developers for shared infrastructure and facilities. Additional controls include mandatory electronic management and accounting systems for management companies, six-monthly reporting to ADREC, strict rules on supply agreements (maximum two-year terms without approval, competitive pricing, and a ban on private profits), and a prohibition on developers collecting maintenance funds more than three months in advance.
Enhanced Disclosure Requirements for Off-Plan Sales
The Resolution significantly expands disclosure obligations in off-plan transactions. Developers must provide a comprehensive package of information, including:
- Detailed building descriptions and sustainability measures
- Proposed common facilities
- Draft plans, materials, and finishes schedules
- A two-year budget and estimated service fees
- Estimated delivery dates
Failure to comply gives buyers the right to terminate the contract. Developers also face liability for materially inaccurate or incomplete disclosures for up to two years following transfer of ownership.
Implications for Market Participants
This Resolution signals a clear regulatory shift toward a more structured, transparent, and investor-friendly real estate market in Abu Dhabi. By centralizing oversight through ADREC and introducing clear accountability mechanisms, it reduces risks for buyers and promotes long-term asset quality and sustainability in jointly owned developments.
Stakeholders, particularly developers and management companies, should promptly review existing arrangements, contracts, and processes to ensure compliance. Early engagement with legal advisors is strongly recommended as further guidance and implementing instructions from ADREC are anticipated in the coming months.
The changes present opportunities as well as obligations. A more predictable and well-governed regulatory environment can boost investor confidence, support sustainable growth, and help position Abu Dhabi as a leading global real estate destination.
