Innovative property investments
Investment property in Dubai
Buying Guide
Property Overview
A new market
Just like pretty much everything else in the country, Dubai's property market is comparatively new - certainly as far as foreign ownership goes - and while things move very rapidly under Sheikh Mohammed's watching gaze there are still a few unanswered questions to be resolved.
A promise
The entire market has been based on the word of the Sheikh, in May 2002 (which can be considered the beginning of Dubai's boom), that foreigners will enjoy full freehold ownership rights despite the rather salient issue that technically such ownership is banned under the UAE's federal constitution.
Being a man of his word, of course, Sheikh Mohammed is hardly likely to renege on his commitments - but that hasn't necessarily helped large foreign lending houses and property lawyers unable to commit to finance and endorsements while any confusion surrounds title.
A promise made law
In 2006 Sheikh Mohammed issued Law No. 7 which formally permitted freehold ownership by foreigners of properties in certain areas and developments.
The exact details of this decree, including registration processes and the areas in question, were left to a series of bylaws many of which are still being prepared at the time of writing; at this time, indeed, technically the issue of freehold ownership is still up in the air, and consequently mortgages, as they are understood in established Western locations, continue to be more or less impossible to obtain.
However, Sheikh Mohammed simply cannot afford for his word to be doubted and his Law No. 7 is being seen as the defining stamp of approval; from here on in, it might not all be legally comprehensible for a while, but foreign freehold ownership is here to stay.
Key facts
- Foreign ownership is a developing part of the legal framework
- In 2006 Law No. 7 was issued formally permitting foreigners full freehold ownership rights in certain areas and developments
- The exact details of Law No. 7 depend on a number of bylaws being written and so, technically, the issue of freehold ownership is still to be made clear
Downloadable Reports and Documents
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