To strengthen Dubai's position as a top international real estate investment location, the emirate passed a new law to govern the granting of "Musataha" rights on commercial lands within the emirate.
The decree signed by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, aims to control how commercial lands are used in Dubai by allowing Musataha the authority to build real estate ventures, according to a statement released by the Dubai Media Office on Wednesday.
A Musataha is a unique kind of public-private investment partnership that gives an investor the right to develop a certain piece of land for a predetermined amount of time.
According to the legislation, the Musataha agreement establishes a real property right that permits its holder to invest in, mortgage, lease, sell, or buy a piece of land belonging to a third party for a period of up to 35 years, or to build on it. It is possible to prolong the agreement for up to 50 years.
According to the statement, the request for renewal must be made two years before the contract's expiration date. It further stated that the agreement's holder must adhere to a number of rules.
For instance, they must file the agreement with the Dubai Land Department or the Dubai International Financial Centre registry, and they are not permitted to alter the use of commercial property without the owner's consent. The UAE real estate industry experienced rapid growth in 2021, and this year is expected to follow suit as the nation's economy improves.
Market sentiment was further enhanced by economic support programmes and government initiatives, such as the expansion of the 10-year golden visa programme and residency permits for distant workers and retirees.
According to a survey released last week, Dubai also led the world in increasing real estate transparency in the years 2020–2022, followed by Abu Dhabi, France, the Netherlands, the United States, Germany, and India.
Under the new law, DLD is tasked with establishing guidelines and requirements to guarantee the best possible use of any commercial lands granted Musataha rights. Along with locating commercial property plots in coordination with the appropriate government agencies, it will also guarantee the peaceful resolution of any disputes that might develop as a result of complaints.
The decree mandated the creation of a specific Musataha agreements registry at DLD, which became effective as of the date of publication in the official gazette. It also included a list of penalties that would apply if no certificate of completion was given for any projects constructed on the commercial property covered by the agreement.
Dubai unveiled a law on Tuesday to encourage the expansion of real estate investment funds in the emirate. The law gave real estate investment funds some advantages in an effort to boost the emirate's reputation as a top location for real estate investment and to offer incentives to draw more money there.
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