Abu Dhabi Real Estate: New Transparency Policies Introduced by ADREC and ADGM

The Abu Dhabi real estate landscape has seen welcome, policy-level developments designed to enhance market transparency and curb misleading advertising.  Each have practical implications for owners, brokers, investors and tenants operating across the Emirate of Abu Dhabi (both on-shore and also within the Abu Dhabi Global Market (“ADGM”)).

Verified property listings

ADREC

The Abu Dhabi Real Estate Centre (“ADREC”) has rolled out Madhmoun, a mandatory verification platform for all property advertisements related to on-shore Abu Dhabi property that is for sale or for rent.

This policy shift was communicated via online platforms back in July and we are now seeing it being implemented.

We understand that as of now:

• Every online property advertisement must now obtain an advertising permit through ADREC’s services portal, DARI, before going live.

• In order to obtain a listing permit: ownership, description, and size must first be verified against ADREC’s property register / the current, valid title deed.

• Each listing can be marketed by no more than three licensed brokers (or the lister can choose to work exclusively with one broker).

• The database synchronises automatically with classified portals, enabling real-time removal of unverified or expired listings and thus reducing the incidence of fake inventory.

ADGM

This month, the Registration Authority of the ADGM has followed suit and introduced its own Advertising Permit service.

The permit regime applies exclusively to properties situated within ADGM’s jurisdiction, namely Al Maryah Island and Al Reem Island. It captures any advertisement for real property situated within the ADGM.

The ADGM’s system has been integrated with ADREC’s Madhmoun initiative, permitting cross-verification of listings while maintaining a separate permit-issuance process tailored to the financial free zone.

In summary

For the first time, online databases will show an accurate account of what is for sale and what is for rent. Fraudulent and duplicate listings will no longer appear.

Currently, it does not appear to extend to short-term rental listings such as holiday-home lettings.

ADREC’s public database

ADREC has also recently launched a public index capturing actual sales and rental transactions across Abu Dhabi. The new index provides data-driven benchmarks to assist stakeholders in accurately pricing assets, assessing rental yields and setting rental pricing.

Investors and tenants may wish to consult the new ADREC sales and rental indices to benchmark pricing and conduct due diligence.

This is a huge step in bolstering investor confidence.

The index is available here: https://adrec.gov.ae/en/property_and_index

Market Impact

In summary we see the impact being that:

• Investors can be confident that a listed property is genuine and available.

• Advertised prices will be more realistic.

• Property research will be both easier and quicker, potentially speeding up the purchase process.

• This aligns Abu Dhabi’s market with international best practices.

Next steps

We are monitoring ADREC and ADGM guidance and will update clients as further information becomes available.

If you have any questions, please feel free to contact Laura Hecht (Senior Associate – Real Estate), Izabella Szadkowska (Partner – Corporate Structuring) or Nour Srour (Senior Associate – Corporate Structuring).