Growth of Real Estate in Dubai
Growth of Real estate in Dubai Dubai residential property market is improving and growing. It started way of growing since 2008 – 2014. Especially after UAE won expo 2020, it brings more investors and visitors. Everyday there are new project launches. Everything gets sold out in few days. The rules and conditions for buyers are changed. It became more convenient and easy. Investors are coming from every place in the world. Mostly they are Indian, Pakistani, Russian Locals and Iranians. What make them come and invest in UAE? The country is developing everyday and changing rules for buyers. Dubai has attracted worldwide attention through innovative real estate projects and sports events. This increased attention, coinciding with emergence as a world business hub, attracting large foreign workforce and investors. To attract more visitors and investors government made a new law about freehold properties. In previous years there was leasehold buying of property (up to 99 year leases) for foreign purchase had been allowed but this was not of big success. In May 2002 the Dubai Crown Prince Sheikh Mohammad Bin Rashid Al Maktoum issued a decree allowing foreigners to buy property freehold. (Staff Writer) Leasehold is a property period when one party buys right to occupy land or building for a given time. At the end of lease period the leaseholder has the right to remain in occupation as an assured tenant paying an agreed rent to owner. Terms of the agreement are contained in a lease, which has elements of contract and property law intertwined. Freehold means that you own property and can do whatever you like with it. The property registered on buyers’ name, and can be used forever. The buyers heirs are entitled to inherit the property after his/her death.(Khalid Kadfoor Al Mehairi) It was adoption of freehold tenure in general and foreign ownership in particular that sparked the great real estate boom in Dubai residential market. The UAE based in few types of law. It’s a civil, common and Islam law. Mainly it’s a civil law system. Civil law is hears all claims ranging from commercial matters (including debt recovery cases). After judgment has been delivered, the parties have the right to appeal to the civil court of Appeal on factual and legal grounds within 30 days of the date of judgment. (Mohamed Ali Abou Sakr) Common law is generally uncodified. This means that there is no comprehensive compilation of legal rules and statutes. While common law does rely on some scattered statutes, which are legislative and decisions, it is largely based on precedent, meaning the judicial decisions that have already been made in similar cases. Common law functions as an adversarial system, a contest between two opposing parties before a judge who moderates. A jury of ordinary people without legal training decides on the facts of the case. The judge then determines the appropriate sentience based on the jury’s verdict. (School of Law) But Common law is used as a supplementary source of law only in the DIFC free zone. Although a religious system, Shariah law is used in personal affairs matters for Muslims (divorce, inheritance and etc) Before buying property foreign investors should know where they are allow to buy it. Law A¢”ž-7 of 2006 about property registration in the Emirate of Dubai.UAE and GCC nationals have rightness own real property in Dubai. No distinction is made between UAE nationals and the other GCC countries. They are afforded equal status. They can own any property right and seek registration of title in the land department. This includes freehold ownership and lease hold up to 99 years. About foreign nationalities except UAE or GCC can own freehold title, a 99 lease hold only in specific areas of Dubai. In summary, it is the most superior form of private property ownership. A freeholder is considered to be the absolute owner of land and building. (Tmalouli) Government of UAE made a law which save investors to lose money if a project was canceled. It’s a law A¢”ž-13 of 2008 and applies to: all disposal of real estate units’ off-plan, other dispositions of real estate units’ off-plan that transfer or restrict title like mortgages, covenants and easement. A developer shall not commence a project or sell units off pan until and unless the developer has taken possession of the plot on which the project is to be constructed. (Mohammed Bin Rashid Al Maktoum) Project should be registered with RERA and should have details include: plans of the units, apartment numbers, internal and external size and common areas plan. The Master developer and sub developer are not allowed to charge any fees for the sale, re-sale and other dispositions of units that have been completed or marked as a sold off plan. An administration fee may nevertheless be charged by developer, provided the developer has obtained from Dubai Land Department. Developers must register completed projects in the real estate register maintained by the department as soon as a completion certificate has been obtained from the competent authorities, including any units that were sold to purchasers who have fulfilled their contractual obligations according to the applicable procedure of the Department. If a developers project is cancelled by order of RERA under law 13 of 2008, then the developer shall refund to the buyer the full amount paid by him. Real estate development trust accounts Law A¢”ž-8 of 2007(Escrow accounts). The provisions of this law shall apply to developers who sell off-plan units in real estate development projects in the Emirate and, in consideration receive payments from buyers or financiers. Trust accounts required by developers for each project, aiming to the protection of buyers and creditors during the development of project. A trust account must be in the name of the project and proceeds used exclusively for the purposes of constructing the real estate project. The amounts deposited in trust account may not be attached in favor of creditors of the developer. A trust account opened with an approved provider. Account Trustee is necessary before a developer can launch and sell off-plan. Five percent of the monies deposited in the trust account shall remain in such account for a period of one year after registering the units in the name of the buyers and title deeds are issued on their names. (Mohammad Bin Rashid Al Maktoum) As an owner of property in UAE it’s not necessary to have resident visa. In case if owner need visa he/she can apply for a multi visit visa. It’s a renewal six month property visa. If multi visit visa issued and property owner abroad, his/her visa will be renewed at the airport on the time of arrive. This move is hoped to improve the local economic environment and offer all fundaments that would help ensure prosperity and economic in the country. According new regulations, investors should meet few criteria’s to get a property visa. They have to own property which cost worth than one million derham and have a monthly income or salary of minimum 10000 derham. The investors should be 100 percent owners of the property with original title deed and present it in department to apply for visa. In the same time it’s not allowed work with multi visit visa. (Exclusive Dubai) Dubai residential property price indices: September 2013 results. Real estate prices in some popular residential areas grow by 30 percent or even more in 2013. Even new projects and off plan property market is raised in value. Property sales index for all residential increased by 7, 2% points, from 225, 2 to 232, 4 which represents an increase of 3.17% month on month. On the other side, prices increased by 19, 8 year to year. Apartment sales price register an increase in September 2013. Price grows by 3, 16% month on month and 21, 7% year to year. (Reidin Emerging markets) Dubai property market will continue to outperform his global peers and the reason is that not just an inflation-proof store of value, also a great for higher return on investment. Dubai property market is faster growing and price rising in the world. (Vicky Kapur) Dubai is very vibrant city in terms of geographical location, infrastructure and trade. This will attract even larger numbers of tourist. The real estate sector will get a big boost as a people see this lovely city and would like to invest in all sectors. New regulations for investors can give them greater legal protection this time. Looking ahead, strong economic conditions, developing of country and new rules will be prospective and attractive for them as well. Before buying a property, better come to UAE as a tourist have a look around and after make your choice to invest or no. If you can find your happiness, success and comfort and enjoyment in Dubai then get a property here. If in the other hand you are not comfortable with rules and unsettled by the extremes of the emirate, leave it. Bibliography https://www.law.berkeley.edu/library/robbins/CLCLTglossary&reading.html https://dubai.usconsulate.gov/emergency_uae_court.html https://www.awf.ae/law-13-2008.html https://220.127.116.11/videoplayer/Law%208.pdf?ich_u_r_i=0cc08ba67d59414bb57dc09cfec08d8d&ich_s_t_a_r_t=0&ich_e_n_d=0&ich_k_e_y=1445078911751063442424&ich_t_y_p_e=1&ich_d_i_s_k_i_d=5&ich_u_n_i_t=1 https://www.arabianbusiness.com/how-buy-freehold-property-in-dubai-444037.html https://www.gulfpropertyguide.com/Freehold.asp https://www.estatesdubai.com/2009/05/multiple-entry-visa-for-property-owners.html https://www.albawaba.com/business/uae-property-growth-580343 https://rebis2.reidin.com/blog/en/519-dubaiabu-dhabi-residential-property-price-indices.html https://www.thedubailaw.com/uaelaws/2010/12/dubai-law-no-7-of-2006-concerning-land-registration-in-the-emirate-of-dubai/
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