The real estate market in the United Arab Emirates is projected to continue growing between 2024 and 2029

 Predicting specific trends for villa or apartment sales in Dubai over the next five years is challenging due to the market's dynamism and various contributing factors. However, based on current forecasts and trends, here's a breakdown of potential scenarios:

 Villa Sales: Moderate Growth: Villa sales are expected to experience moderate growth, possibly slightly outperforming apartment sales due to limited supply and increasing demand for spacious homes with outdoor areas.

Luxury Segment Boom: The luxury villa segment might witness a stronger surge, driven by high net-worth individuals seeking exclusive properties and potentially benefitting from a global shift towards luxury assets.

Location Plays a Role: Prime villa locations, particularly beachfront or waterfront areas, could see higher sales volume and price appreciation than less desirable locations.

Apartment Sales: Steady Growth: Apartment sales are likely to see steady growth, fueled by a larger overall pool of buyers and affordability compared to villas.

Increased Rental Conversions: Some investors might opt to convert apartments into short-term rentals to capitalize on the lucrative tourism market, impacting overall sales volume.

Demand for Specific Types: Apartments with balconies, efficient layouts, and proximity to amenities could be in higher demand, influencing sales in specific segments.

Dubai Residential Market Review 

Strong Price and Rent Growth:

The Dubai residential market experienced a robust year in 2022-23, with average sales prices surging 12% to reach AED 1,203 per sq ft and rents climbing 19% to AED 73 per sq ft by September. This growth surpasses pre-pandemic levels and reflects Dubai's position as a safe haven amidst global economic uncertainty. 

Sub-Market Variations:

 However, the overall picture masks significant variations across different sub-markets. Prime locations like Mohammed Bin Rashed City, Palm Jumeirah, and Business Bay witnessed the highest year-on-year sales price growth, while areas like Dubai Land, Dubai South, and Dubai Creek Harbour faced price declines. Similarly, rent increases were most pronounced in Jumeirah, Palm Jumeirah, and Downtown Dubai, whereas Deira saw a modest dip.

Additional Considerations:

Global Economic Conditions: A slowdown in major economies could dampen overall real estate demand, impacting both villa and apartment sales.

Interest Rate Fluctuations: Rising interest rates might make mortgages more expensive, potentially slowing sales across both segments.

Government Policies: Government initiatives like residency programs and tax benefits could influence investor interest in specific property types.

Overall, while both villa and apartment sales are expected to grow in the next five years, the pace of growth might differ. Villa sales could outperform due to limited supply and increasing demand for spacious living, but the luxury segment might experience the most significant surge. Apartment sales are likely to see steady growth, with specific types like those with balconies and convenient locations potentially faring better. Remember, these are general predictions, and the actual performance of each segment will depend on various evolving factors.

Looking back at the transaction volumes and total values from 2019 to 2023 provides an encouraging picture:

•  2019: The market saw 41,000 real estate transactions, totaling AED 81 billion.
• 2020: Despite global challenges, 52,000 real estate transactions were recorded, with a total value of AED 175 billion.
• 2021: The market experienced a notable rebound with 60,000 real estate transactions, totaling AED 150 billion.
• 2022: The positive momentum continued to accelerate, reaching 120,000 real estate transactions, with a total value of AED 500 billion.
• 2023 (trending): Early indications point to consolidation with an estimated 120,000 real estate transactions, amounting to another staggering AED 500 billion total value.

These figures demonstrate a consistent upward trajectory, with transaction volumes and values experiencing notable growth each year.

 The fact the 2023 trend suggests a consolidation on 2022s 100% growth, underscoring the market’s resilience and demand dynamics despite global headwinds that have impacted other investment markets in the world. For context, the London prime real estate market is expected to undergo a period of contraction this year.

Hospitality Segment:

Occupancy for Dubai averaged 70% at the end of 2022, compared to the same period in 2021, while the average ADR over this period has increased by 37% year-on-year to AED 641. This is higher than the majority of the regional and international markets.

It seems like Dubai's hospitality sector is bouncing back strongly after the pandemic. Here are some additional thoughts based on the information you provided:

 Strong Occupancy Rate: A 70% average occupancy rate at the end of 2022 is a significant improvement compared to 2021 and indicates a steady demand for tourist accommodation in Dubai. This is especially impressive considering the increase in room supply.

Higher ADR: The 37% year-on-year increase in the average daily rate (ADR) highlights a stronger pricing power for Dubai hotels. This suggests that tourists are willing to pay more for the unique experiences and services offered in Dubai.

Competitive Advantage: The fact that Dubai's occupancy and ADR are higher than the majority of regional and international markets further underscores the city's position as a leading tourist destination. This competitiveness bodes well for the continued growth of Dubai's hospitality industry.

However, it's also worth considering some additional factors:

Seasonality: It's important to note that occupancy rates and ADRs can fluctuate significantly throughout the year, depending on seasonality and events. Therefore, it would be interesting to see the data for different quarters or months within 2022 to understand the full picture.

Market Segmentation: Different hotel segments (e.g., luxury, budget) may have experienced different occupancy and ADR trends. Knowing the performance of specific segments would provide a more nuanced understanding of the market.

Future Outlook: While the past performance is positive, it's also crucial to consider the potential challenges and opportunities in the future. This might involve analyzing upcoming events, economic trends, and competitor strategies. 

Residential

Average sales prices for residential property in Dubai increased by approximately 12% between Q3 2021 and

Q3 2022 to reach AED 1,203 per sq ft. Average rents also increased by approximately 19% over the same period,

rising to AED 73 per sq ft as as at the end of 2022. Gross yields reflect 6.1% compared to 5.7% in 2021.

Dubai Residential Property Growth 2024-2029:

While data provides valuable insights into Dubai's recent residential property performance (Q3 2021 to Q3 2022), accurately predicting growth for the extended period of 2024 to 2029 is challenging due to numerous influencing factors.

 However, I can offer some perspectives based on current trends and expert opinions:

 Potential Drivers of Growth: 

Expo 2020 Legacy: Dubai's successful hosting of Expo 2020 has bolstered its global image and could attract further investments and residents.

Government Initiatives: Government initiatives like the 10-year residency visa for investors and entrepreneurs could incentivize long-term property ownership.

Infrastructure Development: Ongoing infrastructure projects like the expansion of Dubai International Airport and the Dubai Metro could enhance connectivity and drive demand for specific areas.

Challenges to Growth: 

Global Economic Fluctuations: A potential global economic slowdown could impact investment and demand for luxury properties.

Geopolitical Uncertainties: Regional geopolitical tensions could affect investor confidence and tourism.

Interest Rate Hikes: Rising interest rates might increase borrowing costs and dampen buying sentiment.

Expert Predictions: 

Moderate Growth: Most experts anticipate continued, albeit moderate, growth in Dubai's residential property market in the coming years, with price increases potentially ranging from 3-5% annually.

Selective Growth: Growth is likely to be more prominent in specific segments like mid-range apartments and well-located villas.

Diversification: The market might see further diversification with an increased focus on rental communities and vacation homes.

Remember:

These are just general predictions, and the actual trajectory will depend on various unforeseen circumstances.

Conducting thorough research and seeking professional advice for specific investment decisions is crucial. 

Dubai Office Rent Growth: Rebounding and Beyond

The good news is that Dubai's office rents have indeed rebounded strongly, exceeding pre-pandemic levels by 12% at the end of 2022. 

This indicates a robust recovery in the commercial real estate sector fueled by several factors:

 Economic Diversification: Dubai's economy is actively diversifying beyond oil, with thriving sectors like tourism, logistics, and technology driving office space demand.

Government Initiatives: Supportive government policies like the 10-year visa scheme for investors and entrepreneurs are attracting businesses and boosting office space requirements.

Limited New Supply: The limited availability of new high-quality office space is putting upward pressure on rents, especially in prime locations.

Looking ahead to the next five years (2024-2029), experts predict continued growth in Dubai's office rents, albeit at a more moderate pace compared to the recent surge. Here's what to expect:

 Annual rent increases are likely to range between 3-5%, with prime locations potentially seeing higher growth.

Growth might be more pronounced in specific segments like flexible workspaces, co-working spaces, and offices catering to technology and creative industries.

Rents are expected to vary depending on location, quality, and amenities offered, with prime locations like DIFC commanding the highest premiums.

Here's an image depicting the potential trajectory of Dubai's office rent growth over the next five years:

 Important factors to consider:

•  Global Economic Headwinds: A potential global economic slowdown could dampen overall business activity and impact office space demand.
• Geopolitical Uncertainties: Regional geopolitical tensions could affect investor confidence and business expansion plans.
• Technological Advancements: The increasing adoption of remote work practices might influence office space requirements in the long run.

 Dubai Tourism Review: Rebounding with Resilience

Dubai's tourism industry demonstrated remarkable resilience in 2022, showcasing strong recovery trends despite ongoing global challenges. Here's a breakdown of the key highlights:

 Visitor Arrivals:

 Positive Growth: Dubai welcomed 10.1 million overnight visitors in the first nine months of 2022, a significant increase compared to the same period in 2021.

Top Source Markets: India remained the top source of international visitors with 1.2 million arrivals, followed by Oman, KSA, and the UK, all showing significant growth compared to 2021.

Pre-Pandemic Gap: While impressive, overall visitor numbers still fell short of pre-pandemic levels, with total arrivals in 2019 reaching 12.1 million.

Occupancy & Rates: 

Healthy Rebound: Average occupancy for the first nine months of 2022 stood at 70%, a notable improvement from 59% in the same period of 2021.

Strong Rates: The average daily rate (ADR) grew by an impressive 37% year-on-year to reach AED 641, surpassing the performance of most regional and international markets.

Market Recovery Drivers: Improved occupancy and ADR were fueled by eased travel restrictions, lifted capacity limitations, and relaxed PPE requirements.

Peak Season: The first three months of the year witnessed the strongest occupancy performance, peaking at 91% in March.

Overall, Dubai's tourism sector displayed a robust recovery in 2022, with visitor numbers, occupancy, and rates all trending upwards. While pre-pandemic levels haven't been fully reached, the positive trajectory bodes well for the future of Dubai's tourism industry.

 Dubai Office Market Review 2022 and Growth Expectations for 2024-2029

Shifting Workplace Strategies: The post-pandemic focus on staff retention and engagement has reshaped occupier strategies, with a greater emphasis on office design and adaptability.

Central Business District Recovery: Prime CBD locations like DIFC and Downtown Dubai rebounded quickly, driven by international companies seeking regional bases and limited Grade A office space.

Inflationary Pressures: Inflation-linked rent escalations impacted existing leases despite ongoing reassessments of the office's role.

Fit-Out Incentives: Capital investment for tenant fit-outs in non-CBD locations is expected to continue as a way to attract and retain them.

Positive Demand Outlook: Projected GDP growth and hiring across key sectors indicate a potentially positive impact on office space demand in the coming years.

Expected Growth in 2024-2029: 

Analysts predict moderate but sustained growth in Dubai's office market over the next five years, with potential scenarios including: 

Rents: Annual rent increases could range from 3-5%, with prime locations potentially seeing higher growth.

Market Diversification: Growth might be more prominent in specific segments like flexible workspaces, co-working spaces, and offices catering to technology and creative industries.

Tech and Innovation: Growing adoption of technology and innovative office solutions could influence space requirements and tenant preferences.

Challenges and Uncertainties:

 Global Economic Headwinds: A potential global economic slowdown could dampen business activity and impact office space demand.

Geopolitical Uncertainties: Regional geopolitical tensions could affect investor confidence and business expansion plans.

Remote Work Trends: The increasing acceptance of remote work practices could influence long-term office space requirements.

Overall, Dubai's office market is well-positioned for continued growth in the next five years, but staying informed about global and regional trends and carefully assessing specific market segments remains crucial for making an informed investment decision 

• Conduct thorough research: Analyze current trends, price forecasts, and market data for both villas and apartments.
• Seek professional advice: Consult a qualified real estate agent who can provide insights and guidance based on your specific needs and budget.
• Consider your lifestyle and priorities: Choose the property type that best suits your needs for space, privacy, and proximity to amenities.
• Be prepared for fluctuations: The market can be dynamic, so be flexible and adaptable to changing trends and prices.
• By staying informed, seeking expert advice, and making informed decisions based on your individual circumstances, you can potentially capitalize on the opportunities in Dubai's real estate market over the next five years.

 I hope this information helps! Let me know if you have any further questions.

Unified rental contract from March 2017 in Dubai

From next month March 2017 onwards, all of Dubai's property lease contracts will have a unified structure, according to the Land Department. The "Unified Lease Form" is designed to "regulate relationships between all parties involved in such transactions and guarantees the rights of all parties," the agency said.

Landlords will have to download and print contracts from the Ejari website and must provide assurance that all items included within are based on a legal framework that regulates the transactions. Items within the contract will thus be governed by applicable laws, including those related to rents.

If any omissions are subsequently found, there is provision for penalties to be applied. Parties to the contract agreement should agree on the items before signing the lease.

According to Hamdan Al Madhani, Director of Rental Relations Regulatory Department, “The applied unified lease form primarily depends on the legal system, and having unified contracts between the parties guarantees the rights of all stakeholders involved.

“The Rental Affairs Sector carries the responsibility to apply the new unified lease contract, in addition to registering leases and tracking the real estate index."

As per Law No. (26)  (under clause No. 16), the landlord is responsible for maintenance repair, and repair of any damage or defect that may affect the well-being of the tenant within the premises, unless otherwise agreed.

Therefore, there cannot be a clause forcing the responsibility on one party alone. Law No. (2) is one of the references used to draft the unified contract. The document also refers to Law No. (33), which regulates the relationship between landlords and tenants, specifically clause No. (25), which specifies the cases that enable the landlord to request an eviction.

These can include subleasing of the property, or in the case of using the property for carrying out prohibited or illegal activities.

‘Rental Increase Calculator’ on the Dubai Land Department-operated portal to help Tenants

Dubai: Tenants in Dubai can have an instant update on where they stand vis-à-vis the new rental decree by inputting their lease details into the ‘Rental Increase Calculator’ on the Dubai Land Department-operated portal. Doing so will let you know immediately whether you are liable to pay a higher rental during the lease renewal and how much landlords are eligible to demand as per the strict range set by the decree.

The average rentals for all the key residential neighbourhoods are provided, which will be updated to ensure they are in sync with the prevailing asking rates. It will also tell you that the landlord has no right to demand an increase in the current renewal if what you are paying now is within 10 per cent of the average rental for that area. What the decree does is lessen the imbalance in the tenant-landlord relationship, which in this market has historically weighed in favour of the latter.

“This decree will further boost the real estate sector by introducing great deal of transparency and clarity to the tenant-owner relationship which will pay off to all stakeholders involved,” said Tanzeel Gader, CEO of Flash Properties.

Also, just as important going forward, Dubai also does not want to be saddled with a reputation of being a costly place to do business from. The latest semi-annual report from CBRE places the emirate’s commercial realty as being the 23rd most expensive in the world.

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If the increases continue, and it will as the buzz gets heavier with all the Expo 2020 preparatory works, Dubai wants to make sure that it will be confined to set ranges that can also be monitored. This is why the decree is as much about Dubai residential space as it will be about its expanding commercial realty.

Abu Dhabi scraps five per cent rent cap

Abu Dhabi has removed the annual five per cent cap on rent increases, according to a resolution issued on Thursday.
The resolution issued by the Abu Dhabi Executive Council annuls the yearly rent increase and rent contract extensions from November 10, a WAM report said.
Analysts say the rents will now be determined by the market forces and the location and the neighbourhood of the buildings.
The change in rental laws comes as the property market in the capital has picked up pace.

Registration of tenancy contract obligatory in Dubai from July

Dubai Registration of rental contracts with the Dubai Land Department (DLD) is a prerequisite to accessing other government services starting July 1st, according to a top property regulator.

The Land Department and its regulatory body — the Real Estate Regulatory Agency (Rera) — has been trying to implement the system through a registration portal — Ejari.ae.

Marwan Bin Galaita, CEO of the Real Estate Regulatory Agency (Rera) said: “Registration of residential and commercial lease contracts through Ejari is mandatory and failure to comply may lead to delay in government transactions. A Dh160 fee is chargeable to register a lease agreement with Ejari. The fee is payable by the tenants.”

“The move will help the government to monitor the property market and offer better insights through its rental index while ensuring all tenants pay their housing fees regularly.”

The Ejari registration will be mandatory to obtain utility services. If the contract is not registered, transactions could be delayed at several government departments, principally the Dubai Economic Department and the Residence and Foreign Affairs Department.

Dubai tenants can register their contracts online or through 47 typing service offices .

A total of 199,663 leased properties in Dubai are registered in Ejari and expecting to the number to get bigger.

Failure to register rent contract with Ejari result in fines for tenants from 2012

Registration of rental contracts with the Dubai Land Department (DLD) will soon become a pre-requisite to accessing other government services, according to a top property regulator.

The Land Department and its regulatory body — the Real Estate Regulatory Agency (Rera) — has been trying to implement the system through a registration portal — Ejari.com.

The move will help the government to monitor the property market and offer better insights through its rental index while ensuring all tenants pay their housing fees regularly. Currently, these contracts are processed by the landlords. The rental data fed into the system is used to calculate the housing fees that are included on utility bills.

Registration of residential and commercial lease contracts through Ejari is mandatory and failure to comply may lead to a penalty, Gulf News has learnt. A Dh160 fee is chargeable to register a lease agreement with Ejari. The fee is payable by either party to the agreement.

The Ejari registration will be mandatory to obtain utility services. If the contract is not registered, transactions could be delayed at several government departments, principally the Dubai Economic Department and the Residence and Foreign Affairs Department.

Trends indicated by the Ejari data will be reflected in the rental index and will have a crucial role in updating it. Information about rental levels in specific areas, the demographic base and the kinds of property formats in favour can also be found.

"The decision is effective on every new contract to be signed in 2012; however, Rera is prepared to allow individual tenants with existing contracts to wait until these are due for renewal before seeking registration," Bin Ghulaita added.

"This regulation was announced a year ago and notices were sent out to parties concerned that the new rule would be effective by 2012. The Department will not accept any contract unless it is registered with Ejari."

According to the Rera, the rule applies to landlords and tenants in Dubai, real estate companies entrusted with the management of realty projects on behalf of others, as well as official agents of owners of commercial complexes and shopping centres.

Steep fine for landlords who don't register with Ejari

Tenancy Contract

New tenants are advised to stay clear of landlords or real estate agents who don't register the lease contract with the new Ejari system to avoid problems with utility connections should authorities enforce the new law in full

Registering tenancy contracts with Ejari, Dubai Land Department (DLD)'s new online portal, is a must under Law No 26 of 2007 which is aimed to regulate landlord-tenant relationships.

Under the Ejari system, made mandatory in March 2010, landlords must first secure Rera approval for their property before leasing it to an individual or turning it over to a property management company.

New tenants presenting a simple tenancy contract to Dewa still get a connection, but that could change. Landlords are obliged to pay the Dh160 Ejari registration fee at the end of the process and failure invites a fine of up to Dh50,000.

Landlords must upload the data for each leased property into the system. Once approved, the Ejari system will print out a new contract which will be the tenant's ticket to get utility connections

Online registration must for lease contracts: Rera

The Real Estate Regulatory Agency (Rera) has announced that from now on all rental/lease contracts for Dubai properties must be registered through its new Ejari online portal.

The announcement makes effective the provisions of Law No 26 of 2007 regulating the relationship between tenants and landlords in Dubai and requires all individuals and companies acting as landlords to register tenancy agreements.

Landlords and tenants who fail to comply with the new ruling will find that their tenancy agreements fall outside the protection offered by the law and government agencies and will not be able to enforce the provisions of the agreements they enter into.

The law clearly states: "Judicial bodies and governmental departments and authorities should not consider any claim, case or execution based on a tenancy contract unless the same is registered with the agency."

Announcing the new ruling and the full activation of Ejari, its state-of-the-art online registration system, Rera called on everyone involved in drawing up and entering into such contracts to ensure full compliance and avoid violation.

Registration through Ejari is a simple process requiring little technical knowledge and only the basic details of agreements are entered. These include information such as details of the property, the name of the rental company and terms of the agreement. Once the agreement is entered into the system and registered, it is allocated a unique barcode that acts as its reference throughout the life of the contract.

What is EJARI

EJARI means ‘My Rent’ in Arabic. But technically it means a revolutionary system that shall move Dubai real estate sector to be one of the best regulated rental market in the world.

EJARI is the new initiative of RERA to regulate and facilitate the Rental Market of Dubai. This is a new system that will make provisions of Law No. 26 of 2007 effective that is regulating the relationship between Landlords and Tenants in Dubai. This will require all individuals and companies acting as landlords to register tenancy agreements using EJARI.

RERA has announced that with the effect of 14 March 2010, all rental / lease contracts for Dubai properties must be registered through its new EJARI online portal. The EJARI electronic registration web service is designed to meet the requirements of the law and RERA’s vision and mission to establish a robust regulatory system for the rental market and protect the rights of everyone involved. .

Its state-of-the-art online registration system offers full protection of their rights to all parties with tenancy agreement. It ensures these rights are recognized, upheld, and enforced by all Government agencies. It establishes full transparency between landlord and tenant, fully integrates rental contracts into the legal framework and opens up the possibility of being able to revise these contracts seamlessly in the event of disputes .

The Ejari system provides a full portfolio of services beyond registering the initial lease agreement. Renewals, cancellations, transfers and terminations can all be logged. Ejari will ensure rental agreements are fair and transparent to the parties involved and that their terms and conditions are given full weight .

How it works?

Registration through Ejari is a simple process requiring little technical knowledge and that only the basic details of agreements are entered. These include information such as details of the property, the name of the rental company, and terms of the agreement. Once the agreement is entered into the system and registered it is allocated a unique barcode which acts as its reference throughout the life of the contract. RERA will keep its own record of the agreement and update changes to the register as these occur.

Investors purchase freehold property in Dubai through offshore company now need to set up an offshore firm with Jebel Ali Free Zone (Jafza).

Investors looking to purchase a freehold property in Dubai through a company now need to set up an offshore firm with Jebel Ali Free Zone (Jafza). Titles to freehold properties will not be registered unless a no-objection certificate (NoC) is procured from the free zone.

This follows the signing of a recent deal between the Dubai Land Department (DLD) and the free zone in a bid to maintain a more concise register of land and property transactions. This new policy, however, does not affect the ownership of properties registered in the name of local entities that were issued title deeds prior to October 26, 2010.

Improving transparency

According to Michael Lunjevich, partner and head of real estate at law firm Hadef & Partners, "It's for the Land Department to have some visibility on who the shareholders and directors are in an offshore company. It's very important to know who the beneficial owners are, and the transfer of property shouldn't be allowed off the Register."

While offshore companies were popular among expatriates, particularly the Muslim community, in Dubai owing to uncertainty over inheritance issues in the region, those established in offshore jurisdictions such as the British Virgin Islands (BVI), the Isle of Man and the Cayman Islands also legally avoid having to pay certain types of taxation on profits and income. "Some international investors don't want assets in their personal name since they could get sued internationally for assets you own in a different country. Transferring it from your name will minimise that risk," explains Brent Baldwin, associate at the law firm.

Despite the fact that the Jafza deal is expected to emphasise information access to shareholder details, investors can still ensure that the asset cannot be traced to their name.

"You may still have situations where the Jafza company is owned by an offshore trust or a nominee company. If you structure your investments well, you can ensure that nothing traces back to you. But, it will be more difficult to sell the structure onto someone else. You will have to transfer two companies and many companies may not be willing to take up collective liabilities," suggests Lunjevich.

Stringent reporting norms

Industry experts believe the DLD could make the reporting requirements for existing foreign offshore firms more stringent. "They might introduce more stringent reporting requirements on those grandfather acquisitions. The Land Department may sometimes enable free transition from a foreign offshore company to a local offshore firm, without charging a fee," Lunjevich says.

The nature of offshore firms not needing to disclose details of the beneficiary has lent itself to fraud and money laundering in many instances. "There have been examples where offshore companies, mostly BVIs, collected money for developments, did not put it into an escrow account and the directors disappeared. Whether it was done fraudulently or they were victims of circumstances, I wouldn't want to speculate," Lunjevich adds.

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.

New property law extends protection for home buyers

A new decree by Dubai Executive Council will provide more protection to home buyers as well as increasing the Land Department's (DLD) role as mediator in property disputes.

Law firm Hadef & Partners, which has reviewed a copy of the decree, released a brief summary of the regulations awaiting formal publication in the Official Gazette.

According to the statement, a buyer can request the courts to cancel a contract if the developer "significantly changes" the agreed specifications, or refuses to deliver the unit without any "justifiable reason".

Home buyers can also seek legal action if developers do not bind payments to construction-based milestones approved by the DLD, or the unit is proved unstable due to “major structural defects”.

“The regulations whilst providing some much needed clarity over many issues also throws up some interesting characteristics such as reinforcing the wide degree of power and discretion the DLD holds in respect of projects,” Hadef & Partners said in a statement.

Under the regulations, which govern off-plan property sales in Dubai, the DLD is able to cancel a project if the developer does not begin construction without “justifiable cause” or because of “gross negligence”.

If the developer is “not serious” about the project or declares itself bankrupt the DLD can also cancel the project.

The regulations also prevent developers from selling off-plan units before taking possession, which includes actual control of the land.

“It is also still not clear how the DLD will approach situations where a purported termination of a purchaser is met with resistance and/or whether the DLD will remove an interest in the interim register without a court order where a legitimate dispute has arisen,” the statement said.

“Further clarity may also be needed where a bankruptcy event occurs as to how exactly the interim registered interests will be treated as far as priority is concerned in the bankruptcy situation.”