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Sharjah allows full real estate ownership to all nationalities.

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Staff Writer, TLR

Published on July 14, 2023, 17:41:00

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Inheritance rights freehold property clearly outlined Sharjahs amended

Inheritance rights for freehold property are clearly outlined in Sharjah's amended real estate legislation, which will spark a new wave of purchases from non-Arab ex-pats.

 

Property purchases in designated freehold regions had already attracted a diverse range of nationalities throughout the year. However, the demographic composition is still largely favoring citizens of the GCC and the UAE. With the new legislation stating that everyone would be granted freehold rights and that inheritance rights will be a part of that, this may be the turning point in casting a larger net for buyers.

 

It was still unclear to some prospective buyers whether a property was freehold or subject to a 100-year lease. This has been made clear, and the Decree also provides full safeguards regarding heirloom rights. Furthermore, the amended statute states that the owner may transfer the property to "one of his first-degree relatives by what is established in the executive rules.”

 

The new edict refers to regions outside of Sharjah's free zones, which have previously been restricted to Emirati and GCC Nationals. The biggest difference is that it will permit ownership in real estate development regions and initiatives like Aljada, Al Mamsha, and Al Zahia.

 

Although demand has always outpaced supply up to this point, Sharjah has seen a steady increase in off-plan launches. However, things may change. The new rule expands the pool of potential purchasers for Sharjah, enables developers to sell there as well as outside, and will only contribute to the market's expansion story.

 

Non-Arabs were permitted to purchase real estate in Sharjah's designated neighborhoods on a 100-year leasehold basis beginning in 2014, provided they were UAE residents. The law was then updated in 2018, allowing any country to purchase in Sharjah without the requirement of a UAE resident visa. Only persons who are citizens of the UAE and citizens of the Cooperation Council for the Arab States of the Gulf" are allowed to own property in the emirate.

 

And as an exception, the following conditions may be met before transferring ownership to someone else: ownership with the Ruler's approval, transferring by way of inheritance due to a legal notice, Assignment to a first-degree relative of the owner according to the provisions of this law's executive regulations ownership of real estate development areas and initiatives that adhere to the Council's rules.

 

As long as they satisfy the requirements for foreign ownership, all asset 

classes will be covered by the new ownership decree. Even while residential real estate is very popular, allowing ownership of other assets kinds will help Sharjah's real estate market expand and diversify for both end users and investors. 

 

Sharjah reported AED 11.2 billion in real estate deals in the first six months, reflecting the optimistic feelings the UAE's broader real estate market has been experiencing over the past two years. And Sharjah real estate transactions reached AED 2 billion in August. These figures include designated freehold zones and cover all real estate and plot transactions throughout the emirate.

 

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