Other BriefingsAbu Dhabi’s New Real Estate Regulation: What Administrative Decision No. 25/2025 Means for Investors and Developers
Abu Dhabi’s new real estate regulation, established under Administrative Decision No. 25/2025, sets out a more detailed framework for jointly owned properties, common areas, service fees, disclosure obligations, and property management.
Abu Dhabi has taken another step toward modernizing its real estate sector with the introduction of Administrative Decision No. 25/2025 (hereinafter, the “new regulation”), a new regulatory decision governing property ownership rights and the management of jointly owned properties and common facilities.
Issued by the Chairman of the Department of Municipalities and Transport (DMT) on November 24, 2025, the decision came into force on February 28, 2026. It was issued under Abu Dhabi Law No. 3/2015 on the Regulation of the Real Estate Sector in the Emirate of Abu Dhabi, as amended, and operates alongside other recent implementing decisions that address escrow account disbursements, owners’ committee bylaws, and refund procedures for cancelled and resold units.
For investors, developers, owners, and property managers, the new regulation clarify how jointly owned properties should be governed after sale and handover. It also strengthens oversight of service fees, management companies, disclosure statements, common areas, and annual budgets.
What is Abu Dhabi’s new real estate regulation?
Abu Dhabi’s new real estate regulation introduces a more structured framework for the ownership, management, and operation of jointly owned properties. It applies mainly to real estate developments where owners share common areas, facilities, infrastructure, and ongoing management obligations, including apartment buildings, master-planned communities, and mixed-use projects.
The regulation covers the full post-handover property lifecycle, including:
- Ownership and co-ownership structures;
- Common areas and shared facilities;
- Management of jointly owned properties;
- Appointment and oversight of management companies;
- Service fees, complex fees, and overdue payments;
- Annual budgets, reserve accounts, and insurance;
- Supply agreements affecting service charges; and
- Developer disclosure obligations before sale.
For investors, developers, and property managers, the core message is clear: Abu Dhabi is strengthening governance after a project is delivered. The regulation gives buyers greater visibility over how a property will be managed, how shared costs will be approved, and what information must be disclosed before a unit is purchased.
Why does the new regulation matter?
The new regulation responds to practical issues that often affect jointly owned properties, including service charge disputes, unclear maintenance responsibilities, limited visibility over shared facilities, and insufficient disclosure before purchase.
For market participants, the impact is threefold:
- Investors gain clearer visibility over long-term ownership costs, management arrangements, and the condition of shared facilities.
- Developers face more detailed compliance obligations across disclosure, handover, management appointments, and service fee approvals.
- Owners and occupants receive stronger protections around common areas, service charges, and the use of shared spaces.
Scope of Abu Dhabi’s new real estate regulation
Common areas and shared facilities
A central part of the new regulation is the treatment of common areas and shared facilities. These may include structural parts of a building, elevators, utility systems, recreational facilities, pools, roads, drainage systems, parks, playgrounds, green areas, and other infrastructure used collectively by owners or occupants.
The regulation restricts the sale, mortgage, disposal, alteration, replanning, or removal of common areas and facilities unless the required approvals are obtained from the Department of Municipalities and Transport, the Abu Dhabi Real Estate Centre, and other competent authorities.
Owners’ and occupants’ obligations
The regulation also clarifies how owners, occupants, and guests must use jointly owned property. Common areas must be used for their intended purpose, without interfering with other users, creating inconvenience, or compromising safety.
Owners and occupants are also restricted from making material changes to the structure or external appearance of a unit without prior written approval from the developer or management company.
Management companies
The new regulation introduces clearer rules for property management companies. Developers must appoint an Abu Dhabi Real Estate Centre-accredited management company within 30 days from delivery of the first real estate unit.
The appointment agreement, including any renewal, may not exceed three consecutive years without approval from the Centre. Management companies must also maintain proper records, use electronic management and accounting systems, submit periodic reports every six months, and hand over records when their appointment ends.
Service fees and complex fees
Service fees are one of the most commercially important areas covered by the new regulation. Unit owners must pay their share of service fees, generally calculated according to the unit’s area as a proportion of the total jointly owned property.
However, service fees cannot be imposed unless approved by the Abu Dhabi Real Estate Centre after approval from the Department of Municipalities and Transport. Any service fees charged without the required approval are unlawful and cannot be demanded or collected.
The regulation also prevents owners from being forced to pay annual service fees in one lump sum. Fees must be payable in monthly or quarterly installments.
Recovery of overdue service fees
The regulation gives management companies clearer tools to recover approved but unpaid service fees. These may include auditor certification, formal notification through a notary public, and documentation from the Abu Dhabi Real Estate Centre confirming the amount due.
The Centre may also place a restriction on the unit’s register, preventing disposal of the property until outstanding amounts are paid.
Supply agreements
The new regulation also addresses supply agreements that affect service charges. Management companies may not enter into agreements that directly or indirectly increase service fees, or allow the developer or management company to earn profits, without approval from the Abu Dhabi Real Estate Centre.
Supply agreements must also include safeguards such as competitive pricing, performance monitoring, termination rights, and restrictions on secret commissions.
Budgets, reserve accounts, and insurance
Jointly owned properties must have annual budgets covering expected income and expenses. These budgets must also include contributions to a reserve account for emergencies and future equipment replacement.
The Abu Dhabi Real Estate Centre may approve, reject, or require changes to annual budgets. Budgets cannot include costs linked to non-compliant agreements or the recovery of capital costs.
Management companies must also maintain insurance for common areas and jointly owned property, including coverage for repair or reconstruction and liability for damage or bodily injury affecting owners, occupants, or third parties.
Developer disclosure obligations
Developers must provide a disclosure statement before a purchaser signs a contract for a real estate unit. This statement should include key information on the project, facilities, management system, draft plans, estimated service fees for the first two fiscal years, and expected construction and handover timelines.
Practical steps for market participants
Investors, developers, and asset managers should prioritise the following:
- Audit sale and purchase agreements against the new disclosure requirements;
- Verify that service fees and complex fees have been properly approved;
- Review management company appointment terms and supply agreements affecting service charges;
- Confirm annual budgets include adequate reserve contributions and that common area insurance is in place;
- Check whether owners’ committee rules apply and that governance documents are up to date; and
- Update internal compliance procedures for Abu Dhabi real estate assets.
The stakes are highest for developers approaching handover, management companies operating jointly owned properties, and investors entering master-planned or mixed-use communities, where layered ownership structures and ongoing fee obligations demand early attention.
How Dezan Shira & Associates Can Help
Abu Dhabi’s new framework places concrete obligations on developers, management companies, and investors across disclosure, service fees, management appointments, and governance.
Our advisors can help you:
- Review sale and purchase agreements and disclosure statements for compliance;
- Advise on service fee and complex fee approval requirements;
- Assess management company appointment terms and supply agreement obligations; and
- Support budget preparation, reserve contributions, and insurance requirements.
Speak to our team about your Abu Dhabi real estate compliance needs.
About Us
Middle East Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Dubai (UAE). Dezan Shira & Associates also maintains offices or has alliance partners assisting foreign investors in China (including the Hong Kong SAR), Indonesia, Singapore, Malaysia, Mongolia, Japan, South Korea, Nepal, The Philippines, Sri Lanka, Thailand, Italy, Germany, Bangladesh, Australia, United States, and United Kingdom and Ireland.
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