Understanding Dubai’s Real Estate Laws and Regulations in 2024

Dubai’s real estate market is based on a strong legal framework, with the DLD acting as the guardian of all property transactions in the city. RERA is another regulatory authority that works under the DLD and establishes the rules and regulations of real estate in Dubai to ensure safety and transparency in the property market. The real estate sector in Dubai contributes a lot to boosting the city’s economy. The rules and regulations have stabilised the real estate industry and increased the trust of investors.

Dubai’s government has introduced strong legislative systems over the past few years to regulate the real estate sector and sustain the real estate boom. As a result, this step has become the turning point for Dubai’s real estate and attracted foreign investment. These real estate laws have systematically kept the whole property transaction process and addressed several legal property matters that buyers and sellers face. In this blog, we will explore the legal landscape and understand the rules and regulations in Dubai’s real estate.

The Dubai Land Department (DLD)

The Dubai Land Department (DLD) is the government agency responsible for regulating the real estate market in Dubai. The DLD is responsible for registering and recording all real estate transactions in Dubai. The Real Estate Regulatory Authority (RERA) is a division of the DLD who are responsible for setting the laws and regulations of the real estate section. Their duties include:

• Collecting all details of tenants and landlords and resolving any tenancy disputes. 
• Regulating foreign investment in Dubai.
• Monitoring the trustworthiness of real estate advertisements 
• Licensing real estate brokers and developers 
• Monitoring banks, insurance and law companies within the real estate industry. 
• Monitoring and managing market development.

Real Estate Laws in Dubai

Dubai is one of the most demanding cities in the world. Its economy largely depends on tourism and the real estate industry. That is why this city has the fastest-growing real estate market globally, where you can make a successful property investment if you have a clear understanding of real estate laws. So, if you want to purchase a property in Dubai, here are some important property laws you must know before entering the real estate market.

Dubai Strata Law

Another important Dubai real estate law is the Strata Law, which applies to multi-unit developments such as apartments and townhouses. The Strata Law’s main principle is the division of a property into privately owned units and jointly owned common areas which are then managed by an owners association. This law sets out the rules for the management and maintenance of common areas and facilities in these types of properties.

Property Ownership Law In Dubai

Law No. 7 of 2006 is a major real estate law that governs property ownership in Dubai. Article (4) of Law No. 7 of 2006 outlines who can own and buy property in Dubai. According to that law, you can purchase a property anywhere in Dubai if you are one of the following:

• A GCC Citizen
• A UAE Citizen

According to Article 3 of Regulation No. 3 of 2006, foreign nationals and non-residents can also buy property in Dubai, but only in designated areas specified by Dubai’s government for foreign property ownership.

Rental Property Laws in Dubai

Investing in rental property in Dubai is very popular due to the higher rental yields. That’s why Dubai’s government introduced rental property laws to protect the rights of tenants and landlords. Let’s have a look at them.

• The tenancy contract in Dubai is for at least 1 year for long-term rental properties. 
• The landlord cannot raise the rent during the contract. It can only be increased at the time of contract renewal. 
• Landlords are prohibited from increasing the rent by more than 15% at a time.
• In case of any dispute or disagreement, the landlord and tenant must contact RERA via email, in which the problem is outlined and request a resolution. Both parties are bound to obey the orders of authorities.

Inheritance Property Laws in Dubai 

Inheritance property laws in Dubai are quite complex compared to other property regulations. If the property owner has dual nationality, the inheritance property law also has to consider the laws of other nations. That is why it is important to assign the property a legal beneficiary.

If the owner has no legal will, the court will decide whether the property will go to the state or be divided among the recipients. That is why all foreign investors in Dubai must have a legal will to save their property for their dependents. 

New Laws Regarding Real Estate in Dubai

The government of Dubai has recently introduced some new regulations on certain real estate issues, as stated below.

Law Number 19 of 2020 - Dubai Interim Registration Law

Law No. 19 of 2020 amends Article 11 of Law No. 13 of 2008 regarding Interim Registration in Dubai. According to the new law, the Dubai Land Department can initiate a challenge to a previous decision and cancel a sale and purchase agreement registered on the interim register based on specified circumstances.

Law Number 20 of 2020 - Dubai Real Estate Institution

According to Law No. 20 of 2020, DREI has dissolved, and all its employees, services, and responsibilities have been transferred to DLD. 

Law Number 32 of 2020 - Land Designated for Educational Use

Law no. 32 of 2020 outlines that the ownership of plots and lands designated for educational purposes shall be transferred to the Knowledge Fund. Real estate developers can retain ownership of such lands and plots by paying the Knowledge Fund 75% of the market value. The payment can be made in instalments over a maximum of 35 years. 

Law Number 33 of 2020 - Liquidation of Cancelled Real Estate Projects in Dubai

Law No. 33 of 2020 replaced Law No. 21 of 2013 and extended the jurisdiction of the Judicial Committee to incomplete and cancelled real estate projects. The Judicial Committee also has the authority to handle RERA’s transfer of matters with consideration and resolution.

Three Broker Rule

In October 2022 the Dubai Land Department (DLD) limited sellers to list their properties with a maximum of three brokers. The move will significantly reduce duplicate listings (multiple agents advertising a single property), enabling more professional brokers and agencies to provide their service efficiently, while securing better customer experience for clients looking for properties. This overall streamlining of the process of buying and selling properties will benefit both buyers and sellers.

Using a conveyancer

Whilst there are Dubai real estate laws and regulations in place to protect buyers in Dubai, the complex nature of property transactions means it is still very important to use a conveyancer to navigate the process. A conveyancer will oversee the legal transfer of a property from the seller to the buyer. This includes drafting and reviewing the terms of the contract and carrying out the various complex legal, financial and administrative duties required. Find out more about Conveyancing Services here. 
Overall, the real estate laws in Dubai are designed to protect the rights of both buyers and sellers and to ensure a fair and transparent real estate market. If you are planning to invest in.

Regulations for Real Estate Developers

Under the regulations set by RERA, real estate developers must obtain a license from the authority before they can start any real estate development project. The law also requires developers to provide detailed information about their projects, including the location, size, and type of units that are being developed. In addition, RERA states that developers must maintain a trust account for each one of their projects. All amounts paid by buyers are paid into the trust account to ensure that all funds are used towards the completion of the project.

Conclusion

The real estate market of Dubai is one of the most dynamic, stand-out, and continuously evolving markets in the world. Whether you are an investor, a homeowner, or interested in the real estate industry, understanding Dubai’s real estate regulations is a must. It is essential to have a trusted partner to navigate this wider market. Contact us to get the best real estate services in Dubai.