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New Real Estate Law in Abu Dhabi
The Government of Abu Dhabi has issued new Abu Dhabi Law No. 2 of 2025 Amending Law No. 3 of 2015 Regulating the Real Estate Sector in the Emirate of Abu Dhabi. The Law will come into force on August 29, 2025, outlining significant changes in various real estate fields:
The Law was published in the Official Gazette of Abu Dhabi No. 5 of 2025.
- Off-plan sales protection: the Law introduces a new mechanism which allows developers to terminate contracts and remove the purchaser’s name in case of a proven violation of the Law’s provisions, while preserving the purchaser’s right to resort to courts or arbitration, if he deems it necessary.
- Escrow accounts: the Law introduces additional protection for the purchasers’ rights in off-plan sales, prohibiting the use of escrow account funds to settle land purchases or broker commissions and requiring at least a 20% project completion by the developer before any withdrawals from the escrow account are permitted.
- Jointly Owned Properties: the Law updates the provisions related to the management of jointly owned properties, by replacing the term “Owners’ Union” with the “Owners’ Committee”, and sets out a clear definition of the Committee’s powers and operational procedures.
- Service Charges and related penalties: the Law introduces a new mechanism that includes imposing administrative penalties in case of non-payment of service charges, such as property disposal restrictions added to the property register.
The Law was published in the Official Gazette of Abu Dhabi No. 5 of 2025.
The information in this article is current as of JuLy 20, 2025.
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