The Dubai ruler, Sheikh Mohammed bin Rashid Al Maktoum introduced a new law to support the growth of real estate investment funds in the emirate. The announcement comes a day after the Dubai ruler issued a decree promoting the growth of real estate investment funds in the emirate.
Dubai’s property market has been experiencing a post-pandemic surge driven by government-led reforms and initiatives over the last six months.
The real estate market recorded AED 22.7 billion sales in June – highest sales figures in the last 13 years – and reaching almost 71 percent of the total 2021 sales volume, Dubai Land Department (DLD) data revealed.
On July 13, the Dubai real estate market recorded transactions to the tune of over AED1 billion on one day, according to data released by Dubai’s Land Department (DLD).
The transactions included 304 sales deals amounting to AED735.85 million, 77 mortgage deals of AED263.54 million and 12 gift deals worth AED24.3 million.
Lynnette Sacchetto, director of data and digital transformation at Allsopp & Allsopp said the Dubai real estate market has not disappointed this year with consistent growth month-on-month and quarter-on-quarter, despite global and local macroeconomic conditions.
“It is July and we have already reached 70.8 percent of total sales volume of 2021, which is significant to note. And I do not foresee these trends slowing down or shifting anytime soon,” Sacchetto said.
The upward spiral of Dubai’s real estate market in recent weeks has been followed by a slew of laws and government-led reforms we aim to breakdown for you in this article:
- Explained: Dubai’s new law to support the growth of real estate investment funds in the emirate
- Explained: Dubai’s latest real estate law to regulate the grant of Musataha rights on commercial lands in the emirate
Dubai’s new law to support the growth of real estate investment funds in the emirate
Dubai’s new real estate law announced on July 20 effectively creates a register for property investment funds, whose members will be given certain privileges to assist them in their investment activities in emirate’s real estate market.
Issued by Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum, the new law is part of the emirate’s ambition to be a “global real estate investment destination and attract global property investments funds,” according to a statement on WAM.
The new register includes real estate investment funds licensed and regulated by government bodies, as well as those in private and free zones, including the Dubai International Financial Centre. It covers all real estate in Dubai as well.
Applicants to the register should have real estate assets of AED180 million or above.
The new law also created a dedicated committee to identify areas and properties that funds are allowed to invest in. It will also see Dubai Land Department appoint a valuation specialist to determine the value of properties owned by the funds.
The move comes as Dubai ramps up initiatives to attract foreign investors, with real estate as one of the focus sectors.
In June, the Dubai real estate market recorded AED 22.7 billion sales – highest sales figures in the last 13 years – and reaching almost 71 percent of the total 2021 sales volume, Dubai Land Development (DLD) data revealed.
The June transaction figures are 32.88 percent higher in volumes and 24.21 percent in value terms on a sequential basis, compared to May 2022.
The top three areas for June sales were Dubai Marina, Jumeirah Golf Estates and Downtown Dubai, according to data from real estate consultant Allsopp & Allsopp.
Dubai’s latest real estate law to regulate the grant of Musataha rights on commercial lands in the emirate
Dubai has issued a new law to regulate the grant of Musataha rights on commercial lands in the emirate.
A Musataha agreement grants its holder rights to develop a plot of land owned by another party for a defined period of time.
Issued by Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum, the law “forms part of the emirate’s effort to consolidate its status as a preferred global real estate investment destination,” a statement on Wam said.
As per the new decree, the Musataha agreement creates a real property right that entitles its holder to construct a building or invest it, mortgage, lease, sell, or purchase a plot of land belonging to a third party for a period of up to 35 years.
The agreement can be extended to maximum of 50 years, and can be renewed given that a request is submitted two years ahead of the expiry, according to the statement.
The Musataha holder will be subject to a number of rules and regulation during the duration of the agreement – including registering it with the Dubai Land Department registry or that of the Dubai International Financial Centre. The holder should also obtain prior approval to the plot owner before changing the use of the commercial land.
The new law comes just a day after the Dubai ruler also issued a decree promoting the growth of real estate investment funds in the emirate.
The UAE property market has been seeing significant upturn in recent years – with the government capitalising on the growth prospects by issuing progressive policies including relaxed visa regulations and easier market entry for foreign investors.
According to a report released last week by JLL, Dubai ranked first in the world for improving real estate transparency in the 2020-2022 period. The recent laws signal the UAE’s regard for the property market as a crucial element in its broader economic diversification strategy.
The Dubai Land Department will be regulating the new Musataha decree. It has already created a registry for Musataha agreements.
Follow us on
