Saturday, May 29, 2010

Dubai Real Estate Laws And Regulations

Dubai Real Estate Laws And Regulations

Real estate anywhere in the world is a market to be watched closely and analysed continuously throughout time. In Dubai, the property market has been booming since early 2001, with major development projects popping up all over the emirate and even on its seas. While the boom may have caused and influx of foreign investors to rush in and grab a slice of this hot-selling cake, the market is finally undergoing its overdue correction, with several laws and regulations tightened, modified and added by the authorities. Dubai real estate laws and regulations are much more effective at present, protecting both buyers and sellers in the right way.

In addition to the basic laws stipulating how locals and foreigners can own property in Dubai, mid 2008 saw three major changes in the Dubai real estate laws and regulations. For a long time, Dubai's property market was based on prices produced through speculation, often resulting in off-plan property selling well over the actual value, even in the resale market. Mortgages were ridiculously planned out, with rights and obligations of parties unclear in the contracts. Many developers falsely claimed to offer guaranteed residency visas for property buyers, when in fact they can't guarantee any such thing.

In response to this corruption level, the authorities began redefining the laws to curb speculation, level the playing field in general and regulate the Dubai real estate market. As of now, no one can buy off-plan property and resell it without incurring a 30% taxation on it, mortgage contracts offered by all financial institutions and developers have to be precise and defined and the link between property ownership and residency visas is clarified. These laws may seem like a double-edged sword, but taken in their entirety, legitimate investors will come off with profits anyway, while weeding out the unscrupulous ones.

The authorities have acted on these in a timely manner, creating a more mature property market than the helter-skelter corrupted market of just a few months ago. Establishing the Real Estate Regulatory Agency and the Dubai Property Court have contributed to more benefits for buyers and sellers in general.