21 07 2020

Acquisition of real estate in the UAE. Ownership.

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A feature of legislation in the United Arab Emirates is that each Emirate has its own rules and regulations governing foreigners' access to real estate and land. We are talking not only about commercial, but also residential real estate. Each of the Emirates has its own set of restrictions, which include the acquisition of real estate only in certain designated areas where land ownership is permitted.

As for Dubai, in the territory of this emirate it is allowed to own real estate areas of Dubai Marina, Palm Jumeirah, Jumeirah Beach Residences, Springs and so on. These areas are areas where the buyer acquires all property rights to real estate and can dispose it of his own free will: sell, rent, etc.

Despite some restrictions on obtaining property rights, there are a number of undeniable advantages for those who would like to invest in real estate in the UAE.

    • Economic development, calm and tolerant policy towards foreigners, developed infrastructure in all areas;

    • Protection of the rights of investors in the UAE, confidentiality;

    • Increased demand for luxury real estate, the absence of huge taxes on its acquisition, the absence of income tax on real estate;

    • Rapid return on capital, as there is a huge demand for residential and commercial real estate in the country;

    • Opportunity to obtain residency in the UAE.

There are three types of property available to foreign companies and individuals:

    • freehold zones;

These are zones in the territory of which the full right to ownership and property dispose is permitted. Owners of real estate in freehold zones can buy, sell, rent, bequeath their property.

    • acquisition of real estate by several owners;

This type of property is common through acquiring residential apartment buildings. With this type of property, the maintenance of the territories adjacent to the objects is carried out by the owners' company on the basis of monthly contributions. This type of property is suitable for those who do not want to worry about ownership of the land or territory in which their property is located.

    • Property in “leasing”;

This type of property arises when the owner of an object acquires rights to real estate only after paying off the cost of ownership and the cost of renting this property to the previous owner. This type of relationship may arise in a long-term lease agreement with the right to purchase.