Dubai real estate is showing no signs of slowing down, despite the rising interest rate and inflation. The market recently witnessed a deal for the most expensive villa in Tilal Al Ghaf worth AED 90.5 million.

The rising economy, the opportunity to earn high ROI, world-class attractions, and new developments – these are some of the major factors that attract many new HNWIs and foreign investors to the Dubai property market.

However, it’s important that you know about the latest Dubai real estate laws in 2023 before venturing into the property market. This will ensure a smooth, complication-free transaction.

Who Sets Laws and Regulations for Real Estate in Dubai?

Real Estate Regularity (RERA), a division of the Dubai Land Department (DLD), is responsible for setting laws and regulations for the real estate sector in Dubai. DLD itself is a government agency that serves the purpose of regulating Dubai real estate.

RERA’s duties include:

  • Resolving tenant-landlord disputes
  • Regulating foreign investment
  • Monitoring and ensuring authentication of advertisements in the real estate sector
  • Providing licenses to real estate developers and brokers
  • Monitoring market development
  • Monitoring financial institutes and law companies serving the real estate industry

Dubai Real Estate Laws in 2023

For Real Estate Developers

Property developers have to adhere to the following real estate laws in 2023:

  • It is mandatory for developers to obtain a license before they can start a real estate developer.
  • They must provide detailed information pertaining to their projects. It should include the property type, location, size, etc.
  • Developers are required to maintain a trust account for every development. It is the same as the escrow account. The amount deposited by buyers is deposited in the trust account.

For Real Estate Brokers

The latest real estate laws in 2023 for brokers are:

  • Brokers are required to undergo training from Dubai Real Estate Institute before working in Dubai.
  • They must have a valid license, which can be obtained by passing a RERA exam.
  • They have to follow a set of guidelines when working with different clients.

Dubai Strata Law

Dubai Starta Law is applicable to multi-unit developments. For example, if a building or development contains multiple units, it’s called a multi-unit development.

The main principle of The Starta Law relates to the division of development into different units that can be owned privately. Furthermore, it also concerns jointly owned common areas of the development, such as parks, lobby, swimming pools, etc. An owners association is set up to manage these jointly-owned areas.

The association is responsible for maintaining and managing these facilities and common areas.

Ownership Laws for Expats in Dubai

According to Dubai real estate laws in Dubai, non-UAE nationals can own properties in Dubai. However, they can do so in certain areas only, which are called freehold areas in Dubai.

It is important that you know the difference between freehold and leasehold properties if you are a foreigner venturing into Dubai real estate for the first time.

Also, you should know that you can gain a residence visa in Dubai without a sponsor by investing in the Dubai property market. It’s called Golden Visa. It’s a renewable visa that’s granted for five years. You can get it if you:

3 Broker Rule

In the preceding year, DLD introduced the new ‘3 Broker Rule’.

As per this rule, a seller can only list their properties with maximum 3 brokers. The initiative was taken to tackle the problem of duplicate listings since earlier a seller could contact multiple brokers who would then list properties on multiple platforms, resulting in a high number of duplicate listings.

Using a Conveyancer

The property market in Dubai is considered safe for both buyers and sellers. However, using a conveyancer is highly important to navigate through the process.

The responsibility of the conveyancer is to supervise the legal transfer of the property. It also includes drafting and reviewing the agreement’s terms and completing different financial, legal, and administrative duties, which are often deemed complex for a layman.

Wrapping Up

To sum it up, Dubai real estate laws in 2023 are laid out with the mission to make the property market safe for every party involved. It’s important to keep abreast with changes to these laws if you want to venture into Dubai real estate as an investor or end-user.

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