Regulation of Dubai's housing sector for buyers and investors

November 5, 2021



Dubai is the most well-known and economically growing city in the UAE. Homebuyers and investors from all over the world are seeking to purchase real estate here, as Arab housing combines high quality and premium comfort levels. To fuel the interest of the foreign public, the emirate government has introduced several property laws for foreign property buyers and investors. These rules and regulations deal with many legal issues related to the sale, purchase, and ownership of the real estate in Dubai. The source will tell you more about them.

A brief digression into history 

After the severe economic downturn of 2008, Dubai's housing market has become different. Regulation in classical and off-plan sales models is being actively strengthened in the country. The cost of housing is steadily increasing, the volume of transactions has grown, and rental yields in Dubai have risen.

The Dubai Land Department, which has increased the fee for property registration, has announced its intention to introduce new laws restricting resale to prevent speculation.

New legislative acts have helped strengthen investor confidence in the Arab housing sector. Amendments to the rental law encourage property owners to invest and profit by renting out their apartments and villas to tenants. The new law also provides for a restriction on rent increases.

The major laws that every investor should know 

Below are the three major Dubai real estate laws that every homebuyer or seller should know.

Real Estate Law No.7 

This law reduces restrictions for non-residents in having a home in Dubai. Previously, foreigners could not purchase land plots and own real estate in Dubai. Now they can get the right to purchase a property in freehold zones.

The Tenancy Act 

For renting an apartment, villa, or other real estates in Dubai, the contract is usually signed for one year. Landlords are not allowed to raise rents. The rent can be increased by no more than 15% after the expiry of the contract when it is extended.

If disputes arise between the tenant and the owner, they must file a lawsuit with the municipal rent control committee. The Commission will examine the dispute and make an appropriate decision.

The Law on Inheritance of Property 

If the deceased owner is a foreign citizen, the inheritance will take place according to the rules of his native country. If a person had dual citizenship, the inheritance procedure takes place according to the will drawn up. In the absence of a will, the court decides on the order of inheritance.

Purchasing a home in Dubai 

Interested in real estate for sale in Downtown Dubai or another district of the emirate? Suitable options for flats and villas are waiting for you on the Ax Capital portal. Make your dream come true today!




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