The real estate market in Dubai is growing at a rapid pace and a high volume of transactions is recorded in the first half of 2022. To further boost the interest of prospective investors, the Dubai government has issued a new law (Dubai Decree No. 22 of 22) which provides for setting up property investment funds. The main aim of this fund is to incentivize and augment the money supply in the real estate market.
In this news article, we are going to discuss the highlights of this new law with the help of our best real estate lawyers of Dubai.
Application of new real estate law
In the opinion of our best property lawyers of Dubai, the new law is landmark legislation to boost demand in the real estate sector. The new law will apply to the following-
- All property and investment funds are regulated by the competent authorities including the funds licensed by Dubai International Financial Centre;
- All real estate properties which are located in the Emirate of Dubai. It is pertinent to note that the new law covers both the free zones and the designated areas excluding any property located in the Dubai International Financial Centre.
Key highlights of the new decree
Our best property lawyers of Dubai have highlighted the following key points relating to the decree-
- A register of property investment funds shall be maintained by Dubai Land Department;
- The properties mentioned in the register will enjoy numerous benefits and privileges in accordance with this new law;
- For registering the property, it is mandatory that its net value must exceed AED 180 million. In the target property, the value of investment shall not be less than AED 50 million;
- A committee for property investment funds shall be constituted which shall be entrusted with the responsibility to identify the type of properties wherein the investment is permissible;
- The Chairman of the Dubai Executive Council is empowered to provide additional benefits and incentives according to this new law;
- Similarly, the Chairman of Dubai International Financial Centre is authorized to provide additional benefits and incentives for the property funds;
- The Dubai Land Department will appoint valuation experts to determine the correct market value of the property. It is highlighted by our top property lawyer of Dubai that the valuer must be accredited by the Real Estate Regulatory Agency (RERA).
Conclusion
This new real estate law is offering exciting opportunities for institutional investors to derive maximum benefits and further strengthen the real estate market of Dubai. However, before making any investment, you should contact one of our best property lawyers to understand all the legal nitty-gritty to avoid any future litigation.
BSB legal is a specialized property law firm of Dubai. Our best lawyers will assist you in drafting agreements, obtaining regulatory approvals, and doing other advisory work to invest in the real estate sector. To know more information, kindly contact one of our best lawyers in UAE. You can email us at info@bsb.legal or call +971 5 016 05046.