Everything you need to know about Real Estate Laws in Dubai in 2023

Are you planning to buy a property in Dubai? Do you want to invest in Dubai real estate related fields? If your answer is yes, stay with us in this post from the Dubai Home website to learn about Real Estate Laws in Dubai and then enter the Dubai real estate sector with complete information.

Dubai’s real estate market has contributed significantly to its economy. Due to new measures and rules introduced, the real estate market is considering stable, and investors are happy to invest. Aside from that, in order to gain confidence and attract the interest of potential buyers, the government is also putting in place some new visa rules that will affect potential buyers.

A visa is possible to obtain as of now by purchasing a property. To start with, you have a wide range of choices available that you can choose from. Depending on your needs, you can get a 6-month visa, a 3-year visa, a 5-year visa, or a 10-year visa. It really all boils down to what suits you best.

The city has made a strong legislative system to regulate real estate in the last couple of years, ensuring that the boom is sustainable based on real consumer demand. This system paved the way for foreign investment to pour into the real estate sector, boosting its capacity to attract foreign investments.

Discover Real Estate Laws in Dubai

Dubai, a well-known Emirate of the UAE, is known for its modern infrastructure, tall towers, and architectural structures. It’s known as a Middle Eastern resort city thanks to its luxurious accommodations.

The Dubai Real Estate market has been hot for a few years because Dubai is a tourist hub with excellent infrastructure. This is why investors worldwide are interested in Dubai real estate. The government has created a few real estate laws in Dubai to ensure that property deals are painless in Dubai.

The following Real Estate Laws in Dubai norms cover a broad range of lawful property matters you need to know as a real estate agent or investor to protect yourself from legal trouble. Read on to learn what you need to know to make your property sale and purchase as easy as possible.

Who Can Buy a Property in Dubai?

In the past, buying an asset in Dubai was a pretty complicated process. As a result of UAE property laws, expats couldn’t buy anything in Dubai real estate. 

As a result of the huge interest expats have in Dubai real estate, the ruler of Dubai, Sheikh Mohammad Bin Rashid Al Maktoum, has enacted new Real Estate Laws in Dubai, allowing expats to lease real estate for 99 years freehold.

It is now possible for expats to own property in freehold and leasehold areas defined by Dubai, just like city residents, with the new Real Estate Laws in Dubai that went into effect in 2016. 

You can get freehold and leasehold rights like you could get them anywhere else. Expatriates who own a freehold or leasehold property can use their assets for the rest of the lease or forever. Expats can transfer their rights to their kids.

Therefore, dependents can own a Dubai property. Additionally, if the freeholder dies, the beneficiaries get assets as well. Therefore, investors need sanctions from the current government in Dubai if they want freehold properties in these areas. 

Real Estate Laws in Dubai: Why Should Buyers Know Them?

Because Dubai is growing and has an excellent infrastructure, investors worldwide are interested in buying property there. To make property deals safer, the government of the Emirate has set up Dubai property laws. Investors need to know about these laws to get the buying process done legally. 

Real Estate Laws in Dubai aren’t just for investors; realtors must also know them so buyers can make risk-free investments. It’s necessary to have a residence permit if you want to buy a commercial or residential property in the UAE. 

A buyer needs to sign the contract to buy an asset in Dubai since it doesn’t perform the legal documentary verification process like other countries do. To ensure their investment is legitimate, buyers must know Dubai property laws.

The law regarding real estate in the UAE is extremely complicated, so it is important you understand all of the rules, responsibilities, and legal risks involved in the sale and ownership of property in Dubai if you are new to the country. 

Real Estate Laws in Dubai

Dubai is the UAE’s most well-known emirate, known primarily for tourism and real estate. For this reason, Dubai has the world’s fastest-growing real estate market, where you can make successful property purchases if you know how Dubai property laws are written.

The real estate laws in the United Arab Emirates regulate the sale, purchase, and ownership of properties in Dubai. If you are planning to buy a property in Dubai, below are some significant things you must always keep:

• Remember that buyers in Dubai have to deposit 10%-20% of their total property price. 
• If you’re buying a new construction property, you’ll need to pay in installments
• The real estate contract in Dubai allows you to transfer the money to the vendor or third party.
• The vendor will charge you 2% of the property price if you pay through them. 

There are some aspects that every investor, seller, and buyer should keep in mind before entering the Dubai real estate market, aside from the keynotes that we listed above. Below, we have listed three key elements of Real Estate Laws in Dubai that every investor, seller, and buyer must remember.

Real Estate Law Number Seven

A major real estate law in Dubai is Real Estate Law Number 7, passed by the government in 2006 and intended to reduce the restrictions on foreign nationals regarding owning property in Dubai.

In accordance with the estate laws of the UAE, expats were not allowed to own real estate in Dubai. However, since the declaration of this law, non-residents and foreigners can now acquire property rights on a lease or through rent agreements.

The UAE also has a government-authorized time duration for leasing or renting a property. This is usually around 99 years for properties in the United Arab Emirates.

Rental Property Laws in Dubai

As well as buying and selling properties, Dubai also has high rental yields; hence, the government has decided to develop rental property laws in UAE to make life more convenient for landlords and tenants alike. 

• Before taking the responsibility of renting out the apartment in Dubai, you should make sure you sign a one-year tenancy contract with the landlord. 
• Landlords couldn’t raise the rent during the contract and could only do it after it ended or was renewed. 
• According to Dubai property rent laws, landlords can increase the price by up to 15% of the rent.
• If the owner and tenant disagree about the rent, they must file a case with the municipal rent control committee. Once the board has decided on the issue, the landlord and the tenant must abide by that decision.

Dubai’s inheritance laws

Compared with other Dubai property laws, Dubai’s inheritance laws are quite complex. If the landlord holds citizenship in another country, then Dubai’s inheritance law will also consider that country.

If a landlord has dual citizenship and none is a UAE citizen, the validation goes to the one who fits with UAE or Dubai legal standards. It’s also important to assign the property to the rightful owners.   

Without a legal will, the court will decide whether the state is due the property or whether it will be divided among those receiving it. 

Since this is the case, non-residents or foreign investors living in Dubai must have a legal will to protect their property for the benefit of their dependents in the event of their passing. 

In a Nutshell

For both residents and non-resident investors, understanding Dubai property laws is crucial. Anyone investing, selling, or purchasing property in Dubai should have a sound understanding of the laws that apply to Dubai’s residential, commercial, and investment property markets.

You need to know Dubai’s property laws not just when you buy, sell, or invest but also when you rent. By understanding the laws, you’ll know who can invest in Dubai property, who can transfer your asset, how dual citizenship might affect your investment, and how long an ex-pat can lease the freehold for.

A thorough understanding of Dubai property laws is essential to taking the most advantage of your investment and making the most of it.

Frequently asked questions about Real Estate Laws in Dubai + answers