Tuesday, March 16, 2010

Industrial and commercial properties in Dubai to be freehold

Decree allows UAE citizens to own industrial and commercial properties with full freehold legal status.UAE nationals will now be able to own industrial and commercial properties, granted by Dubai's government, with full freehold legal status and get title deeds registered through the Dubai Land Department.
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE, in his capacity as Ruler of Dubai, on Monday issued a decree regulating ownership of industrial and commercial plots granted to UAE nationals.
The decree allows every citizen who has been granted an industrial or commercial plot to apply to the Land and Properties Department to obtain a title deed with freehold status for the plot by registering it under his name.
Ownership
The decree also allows ownership of industrial or commercial land which previously changed hands but was not registered with the department.The move comes in line with the procedures to activate property and commercial sectors which are vital to Dubai's economy.
As per the decree the UAE nationals will be able to freely own these properties and act on them legally. These lands were earlier restricted to some extent by government regulations.
The Dubai government had granted thousands of plots to UAE nationals for commercial use.Emirati owners will have to pay 30 per cent of the value of the property to the Land Department as an ownership transfer and registration fee.The 30 per cent value of the land will be determined by the department on the date of transfer of ownership.
Investor confidence
Analysts say the decree will help boost confidence among investors as it opens up industrial and commercial plots for investment.
"Clearly, this has the potential to significantly change the real estate sector in the emirate," Blair Hugkull, managing director of Jones Lang LaSalle Middle East, told Gulf News.
For some time, Dubai's property sector remained too focused on residential property. This decree could change that.
"The previous real estate laws have helped Dubai in attracting foreign capital. However, since the residential property market currently has enough supplies, the new decree will help investors shift focus to industrial and commercial properties — that will help job creation," he said.