Changes to the Real Estate Regulations – Publications

Abu Dhabi Global Market (ADGM) recently published a consultation paper seeking views on how to change the real estate legal framework in light of the expansion of ADGM’s territory to include Al Maryah and Al Reem islands. Comments on the regulations and changes proposed during the consultation can be submitted until June 19, 2024.

ADGM extension

The Cabinet of Ministers issued Decision No. 41/2023 (ADGM Expansion Decision) on April 24, 2023, extending the territory of Abu Dhabi Global Market (ADGM) to include the islands of Al Maryah and Al Reem (New ADGM Territories) in the Emirate of Abu Dhabi. This decision increased the legislative area of ​​ADGM to 14,377,750.81 square meters. However, the decision to extend the ADGM did not provide for a transitional period for the transfer of the laws and regulations of the New ADGM Territories from the mainland to the ADGM, particularly with regard to the real estate legal framework.

Suspension

On June 9, 2023, ADGM published several changes to its laws and regulations, including:

• Real Estate Regulations 2023
• Regulations of the register of off-plan sales 2023
• Strata Titles Regulations 2023

These changes suspended the application of the above-mentioned. regulations for properties located in the geographical area of ​​Al Reem Island until December 31, 2024. According to ADGM, this suspension is intended to enable all entities operating on Al Reem Island to comply with the relevant requirements under ADGM’s legal provisions and regulatory framework. ADGM is working with authorities and regulators on the mainland to facilitate the smooth and seamless transition of existing businesses on Al Reem Island to ADGM’s jurisdiction.

Consultations

On 31 May 2024, ADGM published a consultation paper expressing its views on its proposal for a comprehensive modernization of the real estate regulatory framework in light of the above-mentioned circumstances. The proposed changes include changes to the current Real Estate Regulations 2015 and the introduction of several new subordinate regulations, including:

• Off-Plan Development Regulations 2024
• Off-plan development regulations (project account) Regulations 2024
• Regulations for off-plan and real estate professionals 2024

The proposed changes concern the following issues:

• Correction of existing property rights (including usufruct rights and musataha available on the mainland but not applicable in ADGM)
• Introduction of an off-plan development framework with comprehensive regulations on deposit agreements applicable to off-plan sales
• Introducing regulations for various real estate practitioners (such as brokers, surveyors and property managers)

ADGM encourages off-plan developers, investors, depository banks and all other entities and professional advisors to submit comments on the proposed regulations and changes by June 19, 2024.