Most property owners in Abu Dhabi are unaware that a landmark regulatory shift has quietly but fundamentally changed their rights. In early 2026, Abu Dhabi’s Department of Municipalities and Transport issued four key administrative decisions implementing Law No. 3 of 2015 concerning the Regulation of the Real Estate Sector in Abu Dhabi, as amended by Law No. 2 of 2025. At the centre of this package is Administrative Decision No. 25 of 2025 — a law that every apartment and villa community owner in the emirate needs to understand. It establishes, for the first time, a comprehensive and legally enforceable framework giving property owners a formal democratic voice in how their buildings and communities are managed.
For too long, the balance of power in jointly owned developments tilted decisively toward developers and management companies. Owners paid service charges, occupied units, and lived with management decisions they had no structured mechanism to challenge or influence. Decision No. 25 of 2025 addresses the regulation of jointly owned property by establishing a comprehensive regulatory framework for the management of real estate assets, common parts and shared facilities, defining the respective roles and responsibilities of owners, developers, and property management companies, supported by a clear regulatory and supervisory framework that strengthens the role of ADREC. The era of developer-dominated community governance in Abu Dhabi is over. Here is exactly what has changed and what it means for you.
What Is Abu Dhabi Administrative Decision No. 25 of 2025?
Decision No. 25 of 2025 establishes a comprehensive regulatory framework for the ownership, management and operation of jointly owned real estate developments in Abu Dhabi, defining the rights and obligations of three key parties in any jointly owned development: Developers, Property Owners, and Management Companies.
The decision operates alongside its companion, Decision No. 26 of 2025, which introduces standardised bylaws governing how Owners’ Committees are formed and operate across every development in the emirate. Together, they represent the most significant upgrade to Abu Dhabi’s property governance architecture since the original Real Estate Sector Law was enacted.
| Decision | Scope | Key Impact |
| Decision No. 24 of 2025 | Escrow account controls | Protects off-plan buyer funds before 20% project completion |
| Decision No. 25 of 2025 | Jointly owned property governance | Defines rights of owners, developers, management companies |
| Decision No. 26 of 2025 | Owners’ Committee unified bylaws | Standardises committee formation and powers across all developments |
| Decision No. 165 of 2025 | Off-plan cancellation compensation | Sets clear refund timelines and compensation ratios |
Who Qualifies to Form an Owners’ Committee?
The threshold for mandatory committee formation is clearly defined and deliberately low — ensuring that governance rights activate early in a development’s life rather than years after handover.
| Eligibility Criteria | Requirement |
| Minimum ownership threshold to trigger formation | 30% of units registered to multiple owners |
| Committee size | 5 to 9 resident unit owners |
| Developer eligibility | Expressly excluded — even if holding unsold units |
| ADREC approval requirement | All elected members must be approved before taking office |
| Voting weight per owner | One vote — regardless of number of units owned |
Decision No. 26 standardises how owners’ committees are formed across all developments — their powers, composition, and the process for raising disputes with management companies. Every residential building in Abu Dhabi now follows the same rules for how residents organise themselves — before this, each developer wrote their own, meaning protections varied significantly between buildings. That inconsistency is now eliminated. The same governance rules apply from Saadiyat Island to Al Reem Island to Hudayriyat Island, across every developer and every management company operating in the emirate.
The Voting Process: Fully Digital, Fully Protected
The mechanics of the Owners’ Committee election process are designed to be transparent, accessible, and tamper-resistant. Any qualifying resident unit owner can nominate themselves. Voting is conducted through a fully electronic, secure online platform — no in-person meetings required, no proxy manipulation, and no developer interference at any stage. ADREC oversees and formally certifies the outcome before any elected member takes office. The one-owner, one-vote principle applies regardless of how many units an individual owner holds — preventing large-scale investors from dominating governance decisions at the expense of individual homeowners.
What Powers Does the Owners’ Committee Hold?
The committee’s role is supervisory rather than executive — a deliberate design choice that maintains professional management while installing independent oversight. The practical powers are nonetheless significant.
| Power | Detail |
| Review annual service charge budgets | Full visibility and formal review rights over all charges |
| Monitor management company performance | Structured oversight with documented escalation channels |
| Request management company replacement | Can formally request DMT compel a change if negligence is evidenced |
| Escalate complaints | Formal legal channel directly to ADREC |
| ADREC override | ADREC retains authority to dissolve committee or remove members if needed |
There is now a clear rulebook for who is responsible for the lobby, lifts, pool, and every other shared space once the building is handed over. For owners who have previously faced opaque service charge calculations or unresponsive management companies with no formal recourse, this framework represents a legally enforceable shift in accountability.
New Obligations for Developers and Management Companies
Decision No. 25 of 2025 is not exclusively an owner-empowerment law — it places equally significant obligations on the other two parties in every jointly owned development.
Developers are now subject to:
Mandatory disclosure obligations for off-plan sales, with liability for materially inaccurate or incomplete pre-sale disclosures for two years from the date of transfer. This two-year liability window is a direct protection for off-plan buyers who discover post-handover that the community they purchased into does not match what was represented at the point of sale.
Management companies are now required to:
Be ADREC-accredited and appointed within 30 days of delivery of the first unit to its owner, with their authority governed by strict controls on service charges, mandatory electronic management and accounting systems, and ongoing reporting obligations to ADREC on a six-monthly basis.
| Obligation | Requirement |
| ADREC accreditation | Mandatory — unaccredited companies cannot operate |
| Appointment deadline | Within 30 days of first unit delivery |
| Accounting systems | Mandatory electronic management and accounting |
| ADREC reporting | Every six months — ongoing obligation |
| Service charge controls | Strictly regulated — no unilateral adjustment |
For investors evaluating Abu Dhabi’s off-plan market, these obligations directly protect asset value by ensuring that the management layer responsible for maintaining communities — and therefore sustaining rental yields — is professionally accredited, financially transparent, and legally accountable. Understanding how these regulatory protections interact with specific investment decisions is best navigated with a trusted property advisor who operates across Abu Dhabi’s key freehold zones.
How Does Abu Dhabi Now Compare Globally?
Abu Dhabi’s new governance framework places it alongside the world’s most investor-protected property markets. Comparable systems include the UK’s Leasehold Reform framework, Singapore’s Management Corporation Strata Title system, and Australia’s comprehensive strata laws — all of which are cited by international investors as fundamental markers of market maturity and safety.
| Jurisdiction | Equivalent Framework | Key Shared Feature |
| Abu Dhabi | Decision No. 25 & 26 of 2025 | ADREC-supervised Owners’ Committees |
| United Kingdom | Leasehold Reform (Ground Rent Act 2022) | Standardised leaseholder rights |
| Singapore | MCST (Strata Titles Board) | Mandatory management corporation per development |
| Australia | Strata Law (state-level) | Democratic owner voting on all building decisions |
These decisions form part of Abu Dhabi’s ongoing efforts to strengthen its position as an international investment hub in the real estate sector, by developing a flexible legislative environment that supports real estate developers, protects investors’ rights, and is in line with future growth requirements. For international buyers comparing Abu Dhabi against competing global destinations, this regulatory upgrade is a direct market differentiator — confirmation that property rights here are protected by the same standard of governance found in the world’s most established real estate markets.
Conclusion: From Developer-Dominated to Owner-Empowered
Administrative Decision No. 25 of 2025 is a landmark in Abu Dhabi’s real estate evolution. These decisions enhance the efficiency of sector regulation and reinforce the principles of transparency and governance, supporting investor confidence and strengthening Abu Dhabi’s position as a leading real estate destination. Service charges are now subject to independent review. Management companies are now legally accountable to both owners and ADREC. Developers carry two-year liability for pre-sale disclosures. And every property owner — regardless of unit size or portfolio scale — holds one equal vote in how their community is governed.
For anyone currently owning property in Abu Dhabi, or actively considering a purchase, understanding your rights under this new framework is no longer optional — it is essential to making informed decisions about where you invest and how you protect that investment over time.
Decision No. 25 of 2025 establishes a comprehensive legal framework governing the ownership, management, and operation of all jointly owned real estate developments in Abu Dhabi. It affects every apartment and villa community owner in the emirate, defining the rights and obligations of owners, developers, and management companies. Contact Ayman Sadieh for guidance on how this law affects your specific property or investment.
An Owners’ Committee must be formed once at least 30% of units in a development are registered to multiple owners. The committee must comprise between 5 and 9 resident unit owners, developers are expressly excluded from membership even if they hold unsold units, and all elected members require ADREC approval before taking office.
The committee holds supervisory powers including the right to review annual service charge budgets, monitor management company performance, and formally request through DMT that a management company be replaced if negligence or poor service is evidenced. Every owner holds one vote regardless of how many units they own, and ADREC oversees the entire process. For expert guidance on exercising these rights, contact Ayman Sadieh.
Management companies must now be ADREC-accredited, appointed within 30 days of first unit delivery, operate mandatory electronic management and accounting systems, apply strictly regulated service charge controls, and submit reports to ADREC every six months. Unaccredited companies are prohibited from operating in Abu Dhabi’s jointly owned developments.
Abu Dhabi’s Decisions No. 25 and 26 of 2025 place it alongside the world’s most investor-protected markets — comparable to the UK’s Leasehold Reform framework, Singapore’s MCST system, and Australia’s strata laws. For international buyers evaluating Abu Dhabi against other global real estate destinations, this framework is a direct market differentiator confirming that property rights here are protected to the highest global standard. Visit NAS Luxury to explore investment opportunities in Abu Dhabi’s regulated freehold market.
