What Just Changed — and Why It Matters
Most property owners in Abu Dhabi do not yet know that they now hold a legally protected right to vote on how their building is managed — and to hold developers and management companies formally accountable for how their service charges are spent. Abu Dhabi Administrative Decision No. 25 of 2025, issued by the Department of Municipalities and Transport in early 2026, introduced a comprehensive governance framework for jointly owned properties across the emirate. It rebalances power in residential communities, shifting authority away from developers and management companies and placing it, for the first time under a unified regulatory structure, in the hands of owners themselves.
The decision is one of four regulatory measures issued simultaneously by DMT to implement Law No. 3 of 2015 as amended by Law No. 2 of 2025 — Abu Dhabi’s core real estate sector regulation law. Together they represent the most significant overhaul of property governance in the emirate in over a decade. For every apartment and villa community owner in Abu Dhabi, the practical implications begin immediately.
The Law at a Glance: 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. For the first time under a single unified instrument, the rights and obligations of three key parties are formally defined.
| Party | Key Obligation Under Decision 25 |
| Developers | Mandatory pre-sale disclosure; liable for inaccurate disclosures for 2 years from date of transfer |
| Property owners | Formal right to elect and participate in an Owners’ Committee; service charge obligations strictly regulated |
| Management companies | ADREC-accredited; appointed within 30 days of first unit delivery; six-monthly reporting to ADREC required |
The decision consolidates existing legislative provisions and signals Abu Dhabi’s intention to align its jointly owned property market with international best practice — providing greater protection and certainty for all stakeholders across the development lifecycle.
Who Can Form an Owners’ Committee — and Who Cannot
Formation of an Owners’ Committee is not optional once specific thresholds are reached. The rules are precise, and the exclusion of developers is absolute.
| Criteria | Requirement |
| Trigger threshold | At least 30% of units registered to multiple owners |
| Committee size | Minimum 5 members, maximum 9 members |
| Eligibility | Resident unit owners only |
| Developer participation | Expressly excluded — regardless of unsold unit ownership |
| Regulatory approval | All elected members must be ADREC-approved before taking office |
The explicit exclusion of developers from committee membership is among the most consequential provisions in the decision. Previously, developers retaining ownership of unsold units could exert influence over community governance decisions. Under Decision No. 25, that influence is formally severed. ADREC retains supervisory authority throughout — including the power to dissolve the committee or remove individual members where warranted.
How the Voting Process Works
The voting mechanism introduced under Decision No. 25 and its companion Decision No. 26 — which standardises Owners’ Committee bylaws across all Abu Dhabi developments — is structured around three principles: accessibility, equality, and regulatory oversight.
| Stage | Process |
| Nomination | Any qualifying resident unit owner may put their name forward |
| Voting method | Fully electronic, secure online process |
| Vote weighting | One owner, one vote — regardless of units owned |
| Oversight | ADREC supervises and approves the outcome at every stage |
| Format | No in-person meeting required — entirely digital |
The one-owner, one-vote principle is a deliberate departure from models where voting weight is proportional to unit size or ownership share. It ensures that smaller unit owners carry the same democratic weight as larger investors, directly addressing historical power imbalances in community governance.
What the Owners’ Committee Can Actually Do
The Owners’ Committee operates in a supervisory capacity — it reviews and monitors rather than executes operational decisions. Its authority is defined and regulated, not unlimited. The committee holds the right to review annual service charge budgets before approval, monitor management company performance against contracted standards, and formally request that DMT compel a change of management company where evidence of negligence or poor service exists. Unresolved complaints can be escalated through ADREC’s regulatory channel, and the committee participates in decisions affecting common areas and shared facilities.
The distinction between supervisory and executive authority is intentional. Management companies retain operational responsibility, but owners now hold a formal, regulated mechanism to challenge performance — one that carries genuine legal weight. For property owners seeking to understand how these rights intersect with their investment strategy, NAS Luxury Real Estate provides expert guidance across Abu Dhabi’s residential communities.
What Developers and Management Companies Must Now Do
Decision No. 25 places the most demanding compliance obligations on developers and management companies. The requirements are not discretionary — they are regulated obligations with ADREC as the enforcement authority.
| Party | Obligation | Deadline / Frequency |
| Developers | Pre-sale disclosure of all material off-plan information | Before transfer |
| Developers | Liability for inaccurate disclosures | 2 years from date of transfer |
| Management companies | Obtain ADREC accreditation | Before appointment |
| Management companies | Appoint upon first unit delivery | Within 30 days |
| Management companies | Implement electronic management and accounting systems | Ongoing |
| Management companies | Submit compliance reports to ADREC | Every 6 months |
The six-monthly ADREC reporting cycle for management companies introduces a level of institutional accountability that did not previously exist — converting what were often informal governance relationships into regulated, auditable obligations.
Where Abu Dhabi Now Sits Globally
Abu Dhabi’s Decision No. 25 framework places the emirate alongside the world’s most mature and investor-protected property governance regimes. The alignment is deliberate — Abu Dhabi has modelled elements of this framework on systems with decades of proven performance.
| Jurisdiction | Framework | Key Parallel |
| United Kingdom | Leasehold Reform legislation | Owner right to manage, service charge scrutiny |
| Singapore | MCST system | Mandatory elected committees, regulated governance |
| Australia | Strata title legislation | One-vote-per-lot, mandatory committee formation |
| Abu Dhabi (2026) | Decision No. 25 / ADREC framework | Unified bylaws, electronic voting, developer exclusion |
The alignment with Singapore’s MCST model is particularly notable — one of Asia’s most respected and investor-trusted strata governance systems. Abu Dhabi’s adoption of comparable structural principles reinforces its reputation as a safe, well-regulated destination for international capital, and strengthens the long-term investment case for buyers entering the market in 2026 and beyond.
Conclusion
Administrative Decision No. 25 of 2025 is a landmark shift in Abu Dhabi’s property governance landscape — one that moves residential communities from developer-dominated management structures toward owner-empowered, ADREC-supervised democratic governance. Every property owner in a jointly owned development is affected. Service charges are now subject to independent review. Management companies are formally accountable to both owners and ADREC. Developers can no longer use unsold unit ownership to influence community decisions. Whether you currently own property in Abu Dhabi or are evaluating your first acquisition, understanding your rights under this new framework is foundational to making informed decisions in one of the world’s most dynamic real estate markets.
It is a regulatory framework issued by DMT in early 2026 governing the ownership, management, and operation of jointly owned real estate developments in Abu Dhabi — defining the rights and obligations of owners, developers, and management companies under ADREC supervision. Explore how this affects your investment at NAS Luxury Real Estate.
No. Decision No. 25 expressly excludes developers from Owners’ Committee membership — even where they retain ownership of unsold units in a development. All elected members must be resident unit owners approved by ADREC before taking office.
One owner, one vote — regardless of unit size or the number of units owned. The voting process is fully electronic, ADREC-supervised, and requires no in-person meeting. For expert guidance on property ownership rights in Abu Dhabi, consult Ayman Sadieh.
The committee reviews annual service charge budgets, monitors management company performance, and can formally request that DMT compel a change of management company where negligence or poor service is evidenced. Management companies must report to ADREC every six months.
Decision No. 25 aligns Abu Dhabi with leading global property governance models — including Singapore’s MCST system, the UK’s Leasehold Reform framework, and Australia’s strata title legislation — placing Abu Dhabi among the world’s most transparent and investor-protected markets. Get strategic property advice at NAS Luxury Real Estate.
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