The Department of Municipalities and Transport (DMT) in Abu Dhabi has introduced new real estate regulations governing escrow accounts, the management of jointly owned properties, and the resolution of off-plan sales disputes. These measures arrive as the emirate’s financial free zone, Abu Dhabi Global Market (ADGM), reports significant growth and its Financial Services Regulatory Authority (FSRA) grants 94 new financial services permissions to various entities.

Founders and investors in Abu Dhabi's property sector must immediately review compliance frameworks, particularly for escrow funds and shared property governance, due to new regulations. These rules aim to reduce contractual ambiguity, provide stronger capital protections, and reinforce the emirate's appeal for foreign investment by creating a clearer legislative environment.

What We Know So Far

  • Abu Dhabi’s Department of Municipalities and Transport (DMT) issued new regulations to strengthen property market governance, specifically targeting developer escrow accounts, jointly owned property management, and off-plan sales dispute resolution.
  • These aim to enhance transparency, improve governance, and bolster investor protection in a rapidly growing market that saw Dhs142 billion in real estate transactions in 2025, a 44 percent annual growth, according to Gulf Business.

Key Changes in Abu Dhabi Real Estate Regulations

The DMT's new decisions introduce stricter controls on developer escrow accounts, a central operational requirement for developers and property managers. Under the new framework, developers face more rigorous conditions when seeking to access funds from an escrow account before a project reaches 20 percent completion. This ensures initial capital is directed toward project construction, protecting buyer investments in the crucial early stages of development.

Regulations for jointly owned properties now detail the roles and responsibilities of developers, property management companies, and Owners’ Committees. This clarification aims to streamline operations, prevent disputes over maintenance and service charges, and ensure that all parties understand their obligations. For founders of property management companies and investors in developments with shared amenities, these guidelines create a more predictable operational and legal environment.