New Dubai Property Law Enacted!

Dubai International Marine Center at DM, site of Dubai Int'l Boat Show (14-18 Mar 06)

The news is in that the law has been passed. Initial observations: it seems to be in line with what was expected, however, some clarification is still required on a number of issues. With regard to the Dubai Marina, there is still the question of whether properties of 3rd party developers will recieve freehold titles (as discussed in an earlier post).

Gulf News reports, Expatriates get rights to own property in Dubai:

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, yesterday issued Law No. 7 that legalises freehold ownership of land and property for UAE and GCC citizens, while allowing the same rights to non-GCC expatriates to pre-designated areas that will be approved by the Ruler of Dubai.

What next?

~Bylaws will be issued to determine locations of freeholds as well as registration and transfer fees, which are currently 2% of the property value).

~The Land Department will issue booklets and guidance for property registration soon.

~Hectic activities are expected at the Lands Department.

From AME Info~always interesting analysis if not always accurate in its predictions:

New property law, falling share prices: double bonus for realty

...the Dubai Government has issued its long-awaited property law which experts predict will mean a strong uptick in real estate prices that are well below those of comparable cities around the world. Plus former stock market investors now have cash to invest in property.

...It is true that the missing legislation has held back some categories of foreign buyer and many expatriates will now feel more comfortable about buying.

~and the caveat?

...they (investors) should always have in mind that an oversupply in two to three years' time is likely to interrupt this long-term uptrend, and plan accordingly.

7 Days offers a rather different take in Changing market forces...:

The leak of the draft to the Dubai government’s own newspaper (Emirates Today) may be seen as a bid by authorities to counter a mini-slump in the Dubai property market. Other analysts suggest that the downturn is nothing more than a correction - a maturing of the market.

...Experts agree however that the revealing of the details of the new law before it is approved is unlikely to change this maturing or softening of the market.

This contradictory report suggests that the newly "issued law" as reported above is a draft, leaked to the press. The articles key focus, however, is on the impact of the new law:

The revelation of the details of the propety law will not lead to a boom , however it will stranghten the market, says Helen Tatham of Dubai Luxury Homes. “Most of the people who buy here on a one to one basis do not really think about the law, speaking to lenders it seems that some corporate investors have been holding back to see the property law. These will now come forward but we won’t see a boom or a significant increase in people who are buying houses,” said Tatham.

Gowealthy.com takes a point-by-point look at the new law in The New Dubai Property Law.

Stay tuned for more coverage and analysis. Related posts include:

• New Property Law... Will 3rd Party Developer Projects Get Freehold?
  
• On the Heels of a New Property Law
  
• Top Real Estate Story, 2005: Dubai Announces Property Law--NOT.

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TAG: Dubai property law