Buying Off-Plan in Abu Dhabi: Fees, Escrow and ADGM vs ADREC

If you buy off-plan in Abu Dhabi, your first question is which registry will hold your contract: ADGM (Al Reem Island and Al Maryah Island) or ADREC through DARI (most other investment areas). Registration fees, the payment route and the court that would hear a dispute all follow from that choice. Buyer funds must go into a project escrow account, and official transfer fees are typically 2% of the price, subject to the rules of the registry you are in.

This guide sets out the official fees, escrow rules and steps. Confirm every figure on DARI, AccessRP or your sale and purchase agreement (SPA) before you pay.

Why does ADGM versus ADREC matter?

Abu Dhabi does not have a single property register for every island.

ADGM operates its own real estate framework, under an English common-law system, for property on Al Maryah Island and Al Reem Island. Transfers, leases and related services are handled on AccessRP, or in person at the ADGM Service Centre (ADGM Real Estate Services).

ADREC, under the Department of Municipalities and Transport, is the regulator for the wider emirate. Sales, including off-plan unit registration, are processed on DARI (DARI off-plan unit sale registration).

A tower such as Baheen Tower or Radiant Terrace on Al Reem Island is therefore an ADGM matter. A project on Yas Island or Saadiyat Island, such as Yas Park Place or The Row Saadiyat, is registered through DARI.

What fees will I pay to register the purchase?

ADREC / DARI (most of Abu Dhabi, including Yas and Saadiyat)

Chairman of the Executive Council Resolution No. 49 of 2018 on municipal services fees says the sale registration fee is a percentage not less than 1% and not more than 4%, set by the Executive Committee, equally divided between seller and buyer unless they agree otherwise.

DARI’s own help pages, as read on 16 Nov 2026, describe how that fee is applied on the platform:

• For a completed-property sale, the transaction fee can be 2% of the valuation or selling price, whichever is higher, or 1% of the remaining contract value, depending on the case (DARI sell-property guide).
• For an off-plan unit sale, “the amount due will be 2% of the total sale price”, and AED 10,000 is added if registration is late (more than 21 days from the contract date) (DARI off-plan unit sale registration).

The SPA should state who pays. Do not assume the buyer always pays the full 2%.

Mortgage registration in Abu Dhabi, under the same 2018 fee schedule, is 1 per thousand (0.1%) of the mortgage value, with a maximum of AED 1 million per transaction.

ADGM (Al Reem Island and Al Maryah Island)

The ADGM Real Property Regulations (Fees) Rules 2024 set the fee for transferring a freehold interest at 2% of the real property value or the fair market value determined by the Registrar, whichever is greater. The rules state that this fee shall be paid by the transferor (the seller).

The same schedule sets mortgage registration at 0.1% of the mortgage value.

If your SPA on Al Reem Island shifts the 2% to the buyer, that is a commercial term, not the default in the fee rules. Budget only after you have read the contract.

For a side-by-side worked example against Dubai, see Total cost of buying in Dubai vs Abu Dhabi.

How are my payments protected by escrow?

Abu Dhabi off-plan sales are regulated by Law No. 3 of 2015 concerning the Regulation of the Real Estate Sector, as amended, and by later administrative decisions.

The key protections on ADREC’s official rules pages (as read on 16 Nov 2026) are:

1. Buyer payments belong in the project escrow account. Amounts may be disbursed only to establish and complete the project, and to make finance payments, in line with the escrow agreement.
2. Escrow funds may not be used to pay for the project land or for real-estate brokers’ commissions, or for buyer funds received outside the escrow account in breach of the Law.
3. No amounts may be disbursed from escrow until the developer has completed at least 20% of the construction works, unless the Department accepts an alternative bank guarantee. Administrative Decision No. 24 of 2025 allows early disbursement only against a guarantee of not less than 20% of the value of the construction works, and only if the developer meets stated conditions.

Before you transfer a booking or instalment, ask for the escrow account name, bank and account number, and pay only into that account. If you are asked to pay a broker or a private account from the same funds, stop and take advice.

What happens if a buyer or developer defaults?

If a buyer falls behind, Article 17 of Law No. 3 of 2015, as amended, sets a formal path. The developer must notify the buyer (and any mortgagee) through the notary public or registered mail and allow 60 days to remedy. The Department is then notified and must invite the parties to attempt an amicable settlement. Only if settlement fails, or the buyer still does not pay, may the developer terminate, have the buyer removed from the initial register, and resell the unit after a further 30 days, with sale proceeds going into the project escrow account. Any deduction from the buyer’s deposits must follow the percentages and procedures set by the Chairman.

Buyers also keep the right to go to court or arbitration.

Can foreigners buy off-plan in Abu Dhabi?

Yes, in Investment Zones. Law No. 19 of 2005, as amended by Law No. 13 of 2019, gives non-UAE nationals the right to own and acquire original and in-kind real-property rights in those zones. The official UAE Government portal (updated 2 Nov 2026) still names nine areas, including Yas Island, Saadiyat, Reem, Mariya, Lulu, Al Raha Beach, Sayh Al Sedairah, Al Reef and Masdar City. The Executive Council has also designated further zones by later decisions. The only safe check is the specific unit on DARI and the developer’s letter stating whether it sits in an investment or a development area.

The same official page still describes several title forms, including 99-year unit deeds, musataha and usufruct. Confirm on the sale certificate, and later on the title, exactly which right you are buying. See Freehold areas for foreigners in Abu Dhabi.

A property of at least AED 2 million may also support a Golden Visa application, including certain off-plan purchases. See UAE Golden Visa through property.

What steps should I follow to buy off-plan?

1. Choose the community and confirm the registry. Decide whether the project is in ADGM (Al Reem or Al Maryah) or on DARI, and confirm it is in an Investment Zone if you are not a UAE or GCC national.
2. Use a licensed broker. Your Key is licensed in Abu Dhabi and Dubai. Check the agent’s ADREC licence before you rely on any advice.
3. Check the developer and the escrow account. Ask for the project’s escrow details and that the developer is registered to sell off-plan.
4. Read the SPA and the payment plan. Note the handover date, what happens if the building is delayed, who pays registration fees, and whether a mortgage is allowed. Payment-plan structures vary by developer; see UAE off-plan payment plans.
5. Register the sale. The developer (or their authorised team) lodges the off-plan sale on DARI, or the transfer is completed on AccessRP for ADGM. Off-plan DARI registration should be completed within 21 days of the contract date to avoid the published AED 10,000 late fee.
6. Pay official fees and all instalments into escrow. Keep receipts.
7. Track construction and keep your documents. You will need the sale certificate, payment receipts and, later, the title deed, especially if you intend to mortgage the unit or apply for a Golden Visa.
8. Plan handover early. Under Article 73 of Law No. 3 of 2015, the developer is liable for 10 years for defects that threaten the durability and safety of structural parts or common parts, and for one year for repair or replacement of defective installations. Both periods run from the Municipality’s final completion certificate, not from handover, so report defects early — the one-year clock may already have started before you get the keys. See the handover and snagging checklist.

Compare stock on off-plan projects, Al Reem Island, Yas Island and Saadiyat Island.

Frequently asked questions

What is the official registration fee for an off-plan purchase in Abu Dhabi?

On DARI, the published fee to register an off-plan unit sale is 2% of the total sale price. A late-registration charge of AED 10,000 is added if registration is more than 21 days after the contract date. Confirm the amount due on your DARI application before you pay.

What is the difference between ADGM and ADREC when I buy on Al Reem Island?

Property on Al Reem Island and Al Maryah Island is registered with ADGM through AccessRP. Most other Abu Dhabi investment areas are registered with ADREC through DARI. The registry, fee schedule and dispute forum are not the same.

Who pays the 2% ADGM transfer fee?

ADGM’s Real Property Regulations (Fees) Rules 2024 state that the 2% fee on a freehold transfer is paid by the transferor (the seller). Parties sometimes agree a different split in the sale contract. Check your SPA before you budget.

Are my off-plan payments protected by escrow in Abu Dhabi?

Yes, if the developer is properly licensed. Law No. 3 of 2015, as amended, requires buyer payments to go into a project escrow account and restricts how those funds may be used. Confirm the escrow account details before you transfer money.

Can a foreign buyer purchase off-plan in Abu Dhabi?

Non-UAE nationals may own property rights in designated Investment Zones under Law No. 19 of 2005, as amended by Law No. 13 of 2019. Confirm on DARI, and on the title or sale certificate, that the specific unit sits in an investment area and what form of title you will receive.

What happens if I miss an off-plan instalment in Abu Dhabi?

The developer may not cancel immediately. The law sets a formal notice period of 60 days, followed by an attempt at amicable settlement, before a contract can be terminated and the unit removed from the initial register. Keep written records and seek advice if a payment is at risk.

Official sources (as of 16 Nov 2026)

• ADGM Real Estate Services — jurisdiction over Al Maryah and Al Reem Islands.
• ADGM Real Property Regulations (Fees) Rules 2024 — 2% freehold transfer fee payable by the transferor; 0.1% mortgage registration.
• DARI: Off-plan unit sale registration — 2% of the total sale price; AED 10,000 late fee after 21 days.
• DARI: Guide to sell and buy property — 2% of the higher of valuation or selling price (or 1% of the remaining contract, in the cases described there).
• ADREC rules and regulations / Law No. 3 of 2015 as amended, Resolution No. 49 of 2018, and Administrative Decision No. 24 of 2025 — escrow, disbursement, default procedure and the 1–4% sale-fee framework.
• Law No. 3 of 2015, Article 73, on DARI — 10-year and one-year defects periods, both from the Municipality’s final completion certificate.
• UAE Government: Expatriates buying a property in the UAE (updated 2 Nov 2026) — Investment Zones and title forms.

Last updated: 16 Nov 2026

Abdul Shakoor, Founder & CEO, Your Key — RERA certified (Dubai) and ADREC certified (Abu Dhabi)

Your Key is a licensed brokerage (sales, leasing and off-plan), with offices in Abu Dhabi (M01, Al Mansouri Building, Al Gheel Street, Al Danah) and Dubai (Office 17, 35th Floor, Al Saqr Business Tower, DIFC). To review a project, contact us, call or message +971 54 451 7999, or email main@yourkey.ae.