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Dubai real estate rules and regulations

Dubai is a well-known touristic, business, and investment hub. Due to the economic and political situation, many businessmen prefer to invest in Dubai. This city is developing rapidly and always seeking for new ways on how to bring more opportunities to Dubai investors.

For the last few years, buyers and investors are taking interest to invest in Dubai properties. Due to the rapid increase in real estate investments, the government designed and implemented a number of Dubai real estate rules and regulations for real estate investors. Dubai real estate rules and regulations address many legal issues to selling, buying and owning Dubai property. The main aim is to protect real estate investors’ interests to make the investment process fast and easy.


Dubai Land Department 

Dubai Land Department (DLD) established in the 1950s as the Land Registry Department. It was the first entity to handle properties and ownership affairs until HH Sheikh Rashid bin Saeed Al Maktoum, one of the Founding Fathers of the UAE, established the Land Affairs Commission. He granted it the authority to document and audit certificates, examine and map properties.


Main objectives of DLD 

Dubai Land Department (DLD) seeks to achieve the objectives of Dubai Government’s strategy in the real estate sector and improve land registration procedures according to latest international systems and practices in the real estate sector. It is aligned with a framework of strategic objectives to plan and develop an integrated strategy to enhance the real estate industry in Dubai. The strategy will also help to improve the sector’s control and monitoring competency, oversee and develop its leasing regulations. It will also encourage investments by establishing appropriate environments to promote the role of real estate in Dubai’s comprehensive development plan.


DLD Services

The main goal of DLD is to make sure that all of the related tasks to Dubai real estate rules and regulations are covered and taken care by the government. The DLD offers more than 26 main services and 216 sub-services to customers in the real estate sector. All services include land and title registration, registration and licensing of real estate professionals, and developing a regulatory framework to attract and effectively manage investments. Furthermore, the DLD complies and publishes on a weekly and monthly basis to allow investors to keep track of current real estate prices in Dubai.


Vision and Mission 

The vision of the Dubai Land Department (DLD) is to provide a perfect investment-friendly environment based on international best practices that safeguard the interests of all stakeholders in the real estate market.

The mission is to create an innovative and sustainable real estate environment which will promote Dubai as the world’s happiest city through:

  • Smart services;
  • Professional human and financial recourses;
  • Integrated real estate legislation.


Real Estate Registration Agency (RERA)

RERA has the main responsibility of putting legal Dubai real estate rules and regulations on all real estate related activities of developers, brokerage companies and owners associations. It also issues licenses to developers, brokers and rules & regulations for the registration of off-plan sales in Dubai. RERA monitors all project of developers from financial and technical aspects in order to protect the wider interest of the market and investors. Another task of RERA is to monitor compliance of developers, brokers, and other licensed real estate professionals with applicable Dubai real estate rules and regulations and imposing penalties for violations, including cancellation of projects.


Who can be a real estate owner, in Dubai? 

For many people buying a property in Dubai is a must, even though it used to have its own complexities. Due to great interest from international investors, new Dubai property law has been announced which gave an opportunity to freehold leases of Dubai property for 10 to 99 years lease in specific areas. It started attracting more investors to the country and gave an additional push to economic growth.


Why should you be aware of Dubai real estate rules and regulations? 

Real estate is a big and long-term investment. It requires proper legislation knowledge.  Dubai real estate rules and regulations are changing and always improving in order to make the investment process easier for international businessmen. Right knowledge gives the opportunity for the right and safe decision.

In order to invest a person should obtain a residential permit to live in the UAE. Buyers only need to sign a contract while purchasing a property. In most cases, depending on the payment plan, buyers are required to deposit 10%-20% as a down payment. If you are going to purchase an off-plan project you will have to make payments in installments. In purchase agreement in Dubai, you can transfer the amount to the third party or vendor. If a buyer is making payment via a vendor, he needs to pay 2% of the total property price as a fee to a vendor.

When it comes to real estate investments Dubai government takes direct control on the project development, documentation, registration and money transfers. It secures and protects an investor’s interests. In terms of money transfers, all of the payments should be done through ESCROW account.


Dubai economy and real estate sector 

Dubai is one of the most popular and well-known cities, in the UAE. Its economy developing fast as it is not based on oil, rather on tourism and financial services. Due to the recent financial crisis, which affected UAE as well, Dubai real estate market growth slowed down, slightly. Property prices have decreased which opened even more opportunities for Dubai investors. This time can be considered as one of the best to purchase a Dubai property. In order to make a profitable and successful deal, every investor should be aware of the main Dubai real estate rules and regulations.


Real estate law number 7 

Real estate law number 7 allows foreigners to obtain property ownership on rent or lease.   The duration of property lease for any property is around 99 years that must get approved by the State Government of Dubai.


Rental property laws 

According to the rental property law, the tenancy agreement should be signed for 1 year between a landlord and tenant. A landlord is not allowed to increase rent, during the validity of the contract. Rent price can be changed only during the contract renewal. What is more, landlords are not allowed to increase rent for more than 15%. In case of any dispute between renter and homeowner, they need to file a case to the municipality’s rent Control Committee.


Inheritance property law 

Inheritance property law is quite complex as compared to other Dubai property laws. If a deceased asset owner holds membership of other nation, then inheritance law of UAE also consider the law of other nation. It becomes more complex to decide inherited owners if a homeowner holds dual citizenship of two countries other than UAE. A valid will that fulfills all the legal standards of UAE and Dubai is essentially required to assign estate to legal beneficiaries. In the absence of a legal will, it is an Interstate Court decides how a property should be divided among recipients or state will owe that property. That’s why foreign investors and buyers must have a valid will to save their asset for their families.


The legal part of real estate investments is a must, in order to make the right decision when it comes to investments. If you are planning to invest in Dubai real estate – contact Universal Prime Real Estate. Our investment consultants will be able to provide full information on recent Dubai real estate rules and regulations and help you to make the right investment decision.


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