Buying an Apartment on Al Reem Island: ADGM Rules, Registration and Fees

Buying or selling property on Al Reem Island now requires an understanding of the registration framework following its inclusion in Abu Dhabi Global Market (ADGM) jurisdiction. The change has raised questions about property transfers, title deeds, registration procedures and whether transaction costs have changed for buyers and sellers.

This guide explains how ADGM’s role affects Al Reem Island property transactions, how its registration system differs from the former Abu Dhabi Municipality process, and what buyers and sellers should verify regarding ownership records, transfer fees and registration requirements before proceeding.

Why Did ADGM Expand to Al Reem Island?

ADGM is Abu Dhabi’s international financial centre, with its own legal and regulatory framework. Its jurisdiction expanded to include Al Reem Island as part of Abu Dhabi’s broader efforts to develop its financial and business ecosystem.

In September 2024, ADGM and the Department of Municipalities and Transport (DMT) announced arrangements to transfer real estate and municipal services within the expanded jurisdiction. The transition was completed in 2024, and the relevant real property regulations took effect on Al Reem Island from 1 January 2025. 

For apartment buyers, this means property transactions on Al Reem Island fall under ADGM’s real estate registration framework rather than the previous Abu Dhabi municipality registration process.

The change covers property registration and related services, including ownership transfers, mortgages, leasing and off-plan transactions. It does not mean that every apartment has changed ownership or that existing owners must automatically purchase a new title.

ADGM vs. Abu Dhabi Municipality: What Has Changed?

Previously, Al Reem Island property transactions were handled through Abu Dhabi’s onshore property registration system. Under the new arrangement, ADGM’s Registration Authority administers property registration within its jurisdiction.

ADGM offers digital property services through AccessRP, its online platform for owners, buyers, sellers, developers and tenants. Services include property transfers, mortgage registration, title deed certificates and lease registration. 

For buyers, the practical difference is the authority and process used to complete the transaction. Rather than assuming that the previous municipality procedure still applies, buyers should confirm the current requirements for their specific apartment through ADGM.

Existing ownership interests registered on Abu Dhabi’s property register before 1 January 2025 are addressed by ADGM’s transitional provisions. These provisions allow existing interests to be registered in the new system using the relevant records. 

PropertySeller recommends checking the property's current registration status and ensuring that the seller’s ownership records match the documents required for the proposed transfer.

Did Property Transfer Fees Increase to 4%?

This is one of the most important questions for Al Reem Island buyers.

Claims that property transfer fees automatically increased to 4% following ADGM’s expansion have circulated online. However, buyers should not treat these claims as confirmation of a blanket 4% fee.

ADGM’s published Real Property Regulations (Fees) Rules specify a 2% transfer fee for covered transfers of interests in real property, calculated against the property value or fair market value determined by the Registrar, whichever is higher. Under those rules, the fee is payable by the transferor. 

This differs from the general Abu Dhabi onshore framework, where the applicable sale registration fee is set within a prescribed range and is generally divided equally between buyer and seller unless otherwise agreed.

These frameworks should not be mixed when calculating the cost of an Al Reem Island transaction. The applicable fee depends on the governing rules and the nature of the transaction.

Before proceeding, buyers and sellers should request a current fee breakdown from ADGM or their transaction representative. Confirm the transfer fee, who is responsible for paying it, and whether any additional registration or administrative charges apply.

What Other Costs Should Apartment Buyers Budget For?

The property transfer fee is only one part of the purchase cost. Buyers should also account for expenses that may apply to their individual transaction.

• Mortgage registration: Buyers financing an apartment should confirm the applicable mortgage registration fee and lender charges. ADGM’s published fee rules include a separate mortgage registration charge, so it should not be confused with the property transfer fee. 

• Developer or seller requirements: A resale transaction may involve a developer’s no-objection certificate (NOC), outstanding service charges or other settlement requirements, depending on the property and transaction.

• Ongoing ownership costs: Apartment owners should budget for service charges, maintenance and other applicable community expenses. These costs are separate from the one-time fees associated with purchasing the property.

PropertySeller recommends obtaining a complete transaction cost estimate before agreeing to a purchase price. This helps buyers understand the total cash required to complete the transaction rather than focusing only on the advertised price.

What Should Existing Al Reem Island Owners Do?

Existing owners do not need to assume that the jurisdictional change invalidates their ownership. ADGM’s transitional provisions address interests registered under the previous system, while the new framework governs relevant property registration within its jurisdiction. 

However, owners planning to sell, refinance or lease their apartments should confirm which registration procedures apply to their intended transaction.

AccessRP provides property-related services, including ownership transfers, mortgage registration, title deed certificates and leasing services. Owners who are not UAE residents may also appoint representatives through a registered power of attorney where the relevant requirements are met.

Keeping ownership documents, mortgage details and service charge records organised can help prepare for a smoother transaction.

Conclusion

ADGM’s expanded jurisdiction has changed the property registration framework on Al Reem Island, making it important for buyers to verify ownership records, follow the applicable procedures and understand transaction costs. Rather than relying on outdated municipality guidance or assuming a standard 4% transfer fee applies, confirm the current requirements and charges for the specific property before signing or paying.

PropertySeller helps buyers explore property opportunities with a clearer understanding of the purchase process. When considering an Al Reem Island apartment, look beyond the asking price to include registration requirements, additional costs and ongoing ownership obligations before making a decision.

FAQ’s

1. When did ADGM take over Al Reem Island property registration?

ADGM’s real property regulations began applying to Al Reem Island on 1 January 2025. PropertySeller recommends checking the applicable registration requirements before starting a sale or purchase.

2. Can I register a mortgage on an Al Reem Island property through ADGM?

ADGM provides mortgage registration services through AccessRP. Buyers financing a purchase should coordinate with their lender to confirm the required documents, registration process, fees and completion timeline.

3. Are existing Al Reem Island title deeds still valid?

Existing ownership interests registered before the transition are covered by ADGM’s transitional provisions. Buyers and sellers should check the current property records and ensure the ownership details are correctly reflected before completing a transaction.

4. How can I register an Al Reem Island property transfer?

Buyers and sellers can use AccessRP, ADGM’s digital real estate platform, to submit property transfer applications and complete applicable registration procedures. The required documents depend on the transaction.

5. Does ADGM registration apply to all properties in Abu Dhabi?

No. ADGM’s real property framework covers properties within its jurisdiction, including Al Reem Island and Al Maryah Island. Other parts of Abu Dhabi follow their applicable registration frameworks, so buyers should verify which authority handles their specific property.

6. Can non-residents register property transactions through AccessRP?

ADGM states that owners who are not UAE residents may appoint representatives through a registered power of attorney on the platform. Buyers and sellers should confirm the applicable identification, authorisation and documentation requirements before submitting an application.