The Abu Dhabi Global Market (ADGM), the emirate's international financial center, is seeking public feedback on a proposed overhaul of its real estate regulations. This initiative aims to modernize the legal framework, enhance protections for tenants, and streamline procedures for off-plan property purchases.
The consultation paper, published in June 2024, outlines several key areas for reform. One prominent focus is on strengthening protections for tenants, particularly those in short-term residential leases. The ADGM proposes amendments to its existing regulations to address concerns such as unfair rental hikes and unexpected evictions.
Another crucial aspect of the proposed reforms pertains to off-plan properties, which are residences purchased before construction is complete. The ADGM seeks to introduce a new framework for registering off-plan developments, regulating sales practices, and safeguarding buyer investments. This framework would establish project accounts, requiring developers to deposit sales proceeds into escrow accounts to mitigate financial risks for purchasers.
The proposed reforms also address the legal status of existing properties on Al Reem Island, a rapidly developing area within Abu Dhabi. The ADGM acknowledges the need to update regulations to accommodate these developments and ensure a smooth transition for property owners.
The ADGM's move to revamp its real estate regulations reflects its commitment to fostering a dynamic and investor-friendly property market. By incorporating public feedback and addressing current loopholes, the ADGM aims to create a more transparent, secure, and efficient real estate sector in Abu Dhabi. This will benefit both investors and residents, promoting a more stable and well-regulated property market.
The consultation period for the proposed reforms concluded in June 2024. The ADGM is anticipated to review the public feedback and finalize the revised regulations in the coming months. The implementation of these reforms is expected to have a significant impact on the emirate's real estate landscape, potentially attracting new investors and boosting market confidence.