Things You Must Know Before Embarking on Dubai Property Law

Posted by Professionallawyer on December 23rd, 2021

Dubai is particularly notable for its advanced and innovative buildings, which feature amazing and one-of-a-kind architecture and engineering. What started out as a Middle Eastern resort city for the rich and famous, is now a hub for property buyers and investors. If you are among them, it makes sense to do your homework and know the ins and outs of Dubai property law! The state government has created and implemented some laws that apply to real estate investors and buyers, and the rules and regulations aim to address many legal issues relevant to buying, selling, and owning property. Here are some of the things you must know:

How did the property market transform

Since the global downturn in 2008, the property market of Dubai has changed significantly. More regulations were set, and as the market grew in terms of equity, transaction volumes, rental yields, and prices. Dubai Land Development increased its property registration fees to prevent speculation and curb flipping.

Gain more confidence to invest in property

Since 2006, Dubai property law has encouraged more investors to their chances. For instance, tenancy laws were amended to enable property owners to invest and make a profit as they rent out their property. There is also a decree, which capped on rental increase, depending on a particular neighborhood’s rental index.

In 2007, the escrow law was introduced and it easily became an effective means to protect investors and their earnings. As per this law, the money collected by developers from project financiers and homeowners will go into that account. Moreover, the money must be used only for development.

Who can purchase property in Dubai?

Older Dubai property law made it challenging for foreign buyers and investors to purchase real estate here. However, the Crown Prince of Dubai, Sheikh Mohammed bin Rashid al Maktoum announced new laws, which allowed foreigners to freehold leases of property for an unlimited time. It’s now possible to apply for 10 to 99-year leases in certain areas. Foreigners with freehold rights can utilize their assets for as long as they want, and they’re allowed to transfer their rights to another individual.

Legal assistance may be necessary

If you are interested in buying real estate, consider hiring a lawyer to help you navigate Dubai property law. With their help, you can avoid fraud and shady deals. They can also help you with necessary permits to live and operate a business in Dubai