Abu Dhabi reforms set new benchmark for real estate market transparency

Abu Dhabi’s new real estate regulations covering escrow accounts, off-plan disputes, and owners’ committees are seen as a significant step towards creating clearer and more transparent frameworks for developers, investors, and property owners amid evolving market conditions.

Experts Aletihad spoke to highlighted stronger protections for off-plan buyers, tighter escrow controls to ensure accountability and project delivery, and a more structured approach compared to regional markets.

Matt Gregory, Senior Director – Strategy at Dubizzle Group, underscored the importance of regulatory clarity in driving market confidence, noting that “the latest regulatory updates from the Abu Dhabi Real Estate Centre are a welcome move for the market." They are another step towards building greater transparency, stronger governance, and, ultimately, more confidence for investors operating in the emirate."

He added that clarity supports sustainable market growth, noting, "From our perspective at dubizzle Property, this kind of clarity is exactly what helps markets mature in a sustainable way. It reinforces Abu Dhabi’s position as a well-regulated, trusted destination while also creating a more resilient and transparent environment for everyone involved.”

Building on this, Oliver Morgan, Infrastructure & Real Estate Partner at Deloitte Middle East, said that while Abu Dhabi’s real estate market is facing short-term uncertainty, Decision 24 of 2025 represents “a significant longer-term structural improvement to market regulation.

He also highlighted the sector’s strong performance, noting that “residential sales reached a record Dh73 billion in 2025, backed by a construction industry that contributes nearly 10% to the emirate’s GDP and generates over Dh107 billion in value.”

At the core of the reforms, Morgan pointed to the role of escrow regulation in strengthening transparency and accountability. He explained that stricter conditions on fund disbursement are designed to create a more structured framework.

By requiring bank guarantees and approved cost estimates before any disbursement from project escrow accounts prior to 20% completion, the regulation establishes a clearer and more transparent framework for developers, investors, and property owners,” he said.

He stressed the direct impact on off-plan buyers. “Stronger controls on fund release enhance protections, support more predictable timelines, and improve the efficiency of dispute resolution by ensuring buyer monies are applied strictly to verified project costs.”

Morgan pointed to ongoing cash flow challenges across the construction value chain, particularly in ensuring consistent flow from developers to contractors and suppliers.

He added that stricter escrow controls enhance accountability and delivery standards, explaining, "Decision 24’s stricter escrow controls promote greater financial transparency and accountability at the developer level, which minimizes diversion risk and strengthens overall project delivery standards across the ecosystem.”

He noted that the reforms signal a maturing market that will support growth, attract investment, and strengthen Abu Dhabi’s position as a stable and transparent destination.

Providing further legal insight, Jeremy Scott, Partner – Real Estate at Addleshaw Goddard, and Richard Davies, Partner – Construction & Engineering at Addleshaw Goddard, said the latest decisions bring needed clarity, noting, "This quartet of administrative decisions issued by the Abu Dhabi DMT, when read alongside the recent Law No. 2 of 2025, give welcome clarity to some of the areas left for further development by Law No. 3 of 2015.

They noted that the measures balance the interests of developers, investors, and occupants, while clarifying roles in managing shared property areas.

They added, "Developers now have clarity on the circumstances in which funds can be disbursed from escrow accounts in the early stages of a project: the 2015 law prohibited disbursement when the project was less than 20% complete, leaving only the assessment methodology for completeness to be explained in further regulations.

Noting that earlier rules placed a burden on developers, the law now allows fund use under conditions that protect buyers and project delivery.

On off-plan transactions, they highlighted improved dispute processes, noting that the law enables termination “without immediate recourse to the courts and through a mandated attempt to reach an amicable settlement" while detailing next steps to ensure “a measure of predictability for developers once it has resolved the position with a defaulting purchaser."