UAE is booming with its real estate industry. Many foreigners have invested in Dubai properties to settle with families. The UAE has given opportunities to foreigners who have successfully made money and made new investments. However, if you invest in UAE properties, you should know the property laws and rights of owning a property in those emirates.
Is There Any Complication with the New Law?
The Dubai Land Department (DLD) must register the property funds. Consequently, the new law has a registration process that ensures compliance, specific rules and an understanding of fund structure and investment thresholds. DLD operations can be easily understood by hiring the lawyers and legal consultants or else go to DLD website. However, if there is a situation then we need to hire the lawyers and legal consultants. Any lawyer in Dubai, cannot be a good lawyer for Real Estate cases. Lawyers have to be good in Real Estate and Property. Consider Dubai lawyers a trustworthy source.
Dubai Property Laws Renewed
In recent years, Dubai has introduced several new property laws to promote property funds and attract more investors. The new law is more transparent and easier to regulate. Moreover, it has also boosted the real estate sector of the UAE worldwide. This new initiative by the Dubai Land Department (DLD) has supported the emirate’s vision of becoming one of the biggest investment hubs in the world. To understand, Dubai property laws, Dubai lawyers are most trustworthy source. For example law firm Al Shaiba Advocates and Legal Consultants, they have experienced real estate lawyers.
New Decree Law
Dubai has attracted many real estate investors. To grow the real estate sector, a new law has been introduced approving privileges to real estate funds in Dubai. It was issued to attract individuals and promote the establishment of Real Estate Investment Funds (REIFs) in Dubai. Furthermore, the new law emphasizes the transparency of the ownership, disclosure, and low investment levels to ensure that institutional and individual investors can participate and prosper in the UAE. The law was implemented in Dubai in July 2022.
Implementation of New Decree Law
It applies to property investment funds licensed by the Dubai government, including free and special development zones. However, any property within DIFC’s boundaries is not restricted from implementing the law.
Responsibilities under the New Law
- Properties must be registered under the Property Funds Register to get the incentives of property funds in Dubai.
- You must fulfil the criteria to register the property for an investment fund. The net asset value must be at least AED 180 million. However, the registration fee is AED 10,000, which must be paid to DLD.
- If the property funds are in the Register, they can purchase properties in the Designated Areas of Dubai as expatriates. Also, the registered property funds can obtain freehold rights, rights of usufruct, and lease rights with a maximum term of 99 years within the specified Designated Areas, which will be determined by the new committee created after the passage of the New Decree.
- Certain treatment is specified for property funds registered in the Register for land transfer fees. For example, if the properties are registered for a property fund, DLD will charge 2% of the land transfer fee as calculated on market value. It will be shared equally between the purchase fund and the seller.
- The New Decree enables the Governor of the DIFC to provide more advantages for investors who register in the DIFC.
- The New Decree allows property fund founders to contribute properties in-kind in exchange for AED 50,000, which is a non-refundable fee for the change of ownership from the founders to the property fund.
- For property valuation, DLD will appoint a valuator approved by the Real Estate Regulatory Authority (RERA) to ensure that the right market value of the property in Dubai has been established. The valuator will also consider the guidelines provided by DLD.
An Opportunity for the Investors
The new law can strengthen the UAE’s real estate sector, with investors putting money into Dubai properties, promoting sustainable growth, and proving that Dubai is the best international destination for investment.
How Can Lawyers Help You?
If you are planning to transfer property in Dubai or want to get it registered, the lawyers can assist you with all the paperwork. They will provide the best legal solution to protect your property from scams and identify the lands you can buy in Dubai.
