She confirmed that the new rental law is ready and issued soon
Dubai Land: 20 billion dirhams of real estate transactions in the emirate during the "Corona closure"
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The Dubai Land Department (Dubai Land) stated that the real estate movement in Dubai did not stop, even during the closure period due to the Corona virus, which is (the period from late March to June 2020), as actions recorded 20 billion dirhams, which confirms the solidity of the real estate sector in Dubai.
The department indicated, in special statements, to Emirates Today, that the fees have nothing to do with revitalizing the market, and that 114 countries in the world impose registration fees on real estate sales.
She expected the issuance of the new rent law in Dubai soon, given that the law is ready, and in the stage of preparing its implementing regulations, stressing that according to the provisions of the new law, the owner may not increase the rental allowance for residential real estate before the lapse of three years from the date of signing the contract between the owner and the tenant The law also balances the rights of both parties (the owner and the tenant).
She emphasized that rental disputes went through an upward curve, since the beginning of March 2020, reaching a peak in the period from July to last September, in which the rate of cases recorded about 200 cases per month, so that the curve returned to decline since the beginning of September, to only 18 cases in December The past, and down to (zero) rental claims since the start of the new year.
Closing period
In detail, the Director General of the Dubai Land Department, Sultan Butti bin Mejren, said that “the real estate movement in Dubai did not stop, even during the closing period (late March to June), as the total transactions of sales and mortgages reached 20 billion dirhams, during that Period.
Quality deals were also concluded during that period, where a villa in (Palm Jumeirah) was sold at a value of 15 million dirhams, and another villa with a value of nine million dirhams was sold, which are good numbers and deals that indicate the strength, durability and solidity of the real estate sector, and its ability to face crises. Despite the high frequency of fear due to the spread of the Corona virus, which affected the psyche of the real estate investor, and made the purchasing decision difficult at times.
He emphasized that, in the last quarter of last year, an upward movement was observed, as the curve began to improve since the third quarter, which is what was recorded by the figures on real estate behavior.
register fees
In response to the demands of some to reduce the registration fees in the department from 4 to 2%, Bin Mejren said that "the fees have nothing to do with stimulating the market, and that all countries impose registration fees on real estate. There are more than 114 countries imposing these fees."
He stressed that among the good things in the Dubai real estate market, there are a number of real estate developers supporting the market with a lot of promotional offers, as there are developers who, during the crisis, bore these fees instead of the real estate investor, which is what we have seen a lot in the real estate market recently.
Real estate broker
On raising some brokers' commissions that they receive from developers, Bin Mejren said, “Indeed, in the recent period, it has been observed that some brokers charge a commission rate ranging between 8 and 10%”, pointing out that “this (percentage) is deserved by some because it is related to other expenses that are borne by it. Professional mediator, including advertising campaigns.
It is worth noting that the developer prefers this type of intermediaries who have a comprehensive media and promotional plan, as the developer does not pay to them unless he is certain that they can achieve a good return in terms of sales.
He pointed out that «this percentage is charged by a few professional brokers and international brokerage houses, and these have the ability to reach the largest number of investors, especially from outside the country, and they are known by name in the real estate market in the UAE».
He stressed that «a good broker is an addition to the real estate sector, because it is able to move the wheel of real estate investment, because it is doing to attract investments from abroad, and from within as well».
Tenancy Law
The Director General of the Dubai Land Department expected the issuance of the new rent bill in Dubai soon, indicating that the law is ready, and in the stage of preparing its implementing regulations, pointing out that all the items put forward by the department have been agreed upon, which states that it is not permissible. The owner may increase the rental allowance for residential real estate, before the lapse of three years from the date of signing the contract between the owner and the tenant.
He pointed out that "the new law balances the rights of both parties (the tenant and the owner), as there are provisions that guarantee the right of the tenant, and other provisions that guarantee the right of the owner, including the possibility of resorting to the enforcement judge in the event that the tenant does not pay the rent, which guarantees the rights of the owner."
Bin Mejren pointed out that “fixing the rental value in Dubai for three years would stimulate and encourage investments in the emirate, and it would also help settle tenants in Dubai, because it provides a good alternative for them, away from the annual movement in search of less expensive real estate. One city for another, in addition to the annual increases in rental values, as is the case now.
Blockchain
He emphasized that the department aims to "automate" all its systems, using blockchain technology and cloud systems, as this new system was adopted some time ago, with the aim of registering real estate sales, which allows real estate owners to sell their properties remotely, from anywhere in the country. The world, as it helps them complete their transactions and procedures without the need to be in person, or to come to Dubai, or delegate another person to complete this process, pointing out that the actual implementation was done in partnership with some developers, such as «Emaar».
The beginning of the "pandemic"
Regarding the mechanism by which the Rental Disputes Settlement Center, the judicial arm of the department, dealt with the repercussions of the "pandemic", the head of the center, Judge Abdel Qader Moussa, said that “at the beginning of the (pandemic), complaints regarding the payment of rental dues increased, especially by tenants, They are the group most affected by the repercussions of (the pandemic), as many of them rushed to the center with requests to reduce rents, cancel the rental contract, and deposit the keys at the center, through the (display and deposit) mechanism, due to their inability to pay while the owners refused to receive the key from them.
He added: “On the other hand, owners filed lawsuits before the center, confirming their right to the continuity of the lease contract, which contributed to the increase in rental claims at the beginning, especially since the situation was unclear at that time, but the center dealt with the matter seriously, and began to help the beneficiaries. , Through legal and administrative procedures ».
Peak months
Judge Moussa pointed out that the peak months of the "Corona" period, was in the period from July to last September, during which the volume of cases increased to 200 cases per month, but it declined in large proportions, during the following months, to only 18 cases last December. Noting that, since the beginning of 2021, a rental case related to Corona has not been registered.
Distance working
Judge Moussa pointed out that “one of the things that the center has benefited from is to expedite the reliance on the (remote work) mechanism long before the emergence of (the pandemic), which contributed to dealing with the (Corona) pandemic in a positive and rapid manner, as parties in disputes were dealt with Leasing services in more than 22 countries, and issues were dealt with quickly through mechanisms, such as (order on petition), especially with regard to problems related to cutting basic facilities.
A 24-hour system has been implemented in relation to these issues, which are related to the basic needs of the disputants.
He said: «At the beginning of the crisis, we dealt with disputes through procedures, including cooperation with other departments to determine the extent of the impact of commercial activity, and the most prominent of these departments (Dubai Economy) and the Department of Tourism and Commerce Marketing.
We have also followed up all the decisions taken by the government related to the crisis, in addition to requesting all documents that support the tenant’s point of view in case he is harmed, including issues related to a salary reduction for the residential sector, or damage to commercial activity, and the goal of all this is to continue the rental relationship to the satisfaction of both parties. .
Insightful vision
Judge Moussa affirmed that «the Dubai government dealt with wisdom and insight with matters related to leases in the emirate, as the real estate sector is considered one of the main activities in the emirate, as we immediately complied with the directives of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Chairman of the Judicial Council , To stop the implementation of rental evictions for residences and commercial establishments that a decision was made to completely or partially close them due to non-payment of (the rent), during the months of March and April 2020 ».
Specialized committees
He pointed out that the center took several measures, last month, related to rental cases established, affected by the repercussions of the Coronavirus, including the establishment of three judicial committees concerned with such cases, two of which are "primary", and one committee is "appeal", pointing out that the task of these committees is It is the consideration of cases in which the dispute is related to the repercussions of the Corona virus, on one or both sides of the rental relationship, and aims to expedite the settlement of such disputes that are related to urgent rental and housing issues.
Innovative solutions
Judge Moussa affirmed that Coronavirus has pushed to devise ways to solve problems related to rental disputes, without entering the litigation stage, pointing out that one of the most prominent solutions provided by the center in the commercial sector is (sharing in profits), as an alternative to (rent) for establishments. Commercial, pointing out that the center received 1500 rental disputes through its reconciliation department, which varied between commercial and residential, 1450 of which were resolved by more than 96%.
Joint ownership
Judge Moussa pointed out that the file of disputes, in relation to joint ownership, was transferred to the center according to the recent law on joint ownership, where the cases related to these disputes are decided within the center.
He pointed out that the law states that “it is the responsibility of the owner to pay the service allowance and the usage allowance, unless the unit lease contract stipulates otherwise.
In all cases, the landlord is not exempt from paying the service fee and the usage allowance, in the event that the tenant fails to pay them as determined under this law.
The law also stipulates that the landlord and tenant are obligated to abide by the statute, the community base system, and the building management system.
They are also obligated before the rest of the owners and occupants of other units, before the owners' committee, and before the management authority.
He pointed out that the center adopts consensual methods, before resorting to implementation against those who fail to pay service fees, whether it is the owner of the unit or its tenant according to the agreement signed between them, pointing out that there are 1000 implementation files related to the failure to pay service fees, and work is underway to solve many of them. Using consensual methods, stressing that in the event of a lack of consensus, there are progressive steps that the center undertakes, starting with the possibility of giving the property manager the right to rent the unit to pay off its obligations, up to the unit being offered in the public auction, in the event that all consensual and legal solutions fail.
Intransigence of an angel
Judge Moussa pointed out that, in the previous period, we faced some intransigence from the owners, especially with regard to the contracts for commercial stores, where the owner insists on the continuation of the lease contract, despite the inability of the tenant to pay for the suspension of activity due to the current crisis and the precautionary measures, which was done. Dealing with him with consensual solutions by the center, as many of these problems were solved.
He focused on the Center's efforts to reconcile the viewpoints, in terms of the necessity for there to be flexibility on the part of companies, especially those that run large commercial centers, especially since the tenant or investor put large sums into the decorations, and leaving the leased place will cause a problem for him And for the company that owns or manages the real estate, stressing that the law in Dubai applies to everyone.
Honoring «Emirates Today»
Bin Mejren during the handing over of Abdul Qadir Musa the shield of honor to colleague Sami Al Riyami. Photography: Ahmed Arditi
The Dubai Land Department (Dubai Land) honored the newspaper "Emirates Today" for its role and efforts in covering issues related to the real estate sector, and in the presence of the head of the department, Sultan Butti bin Mejren, the head of the Rental Disputes Settlement Center, Judge Abdul Qader Musa, handed the shield of honor to the President Al-Tahrir, colleague Sami Al-Riyami.
Judge Abdul Qader Musa said that the support of “Emirates Today newspaper” to the Department of Lands and Properties and the Center for Dispute Resolution, during the period of the Corona pandemic, was more than good, as the newspaper conveyed the message to be communicated during the crisis to all concerned parties, in the interest of efforts The center », stressing that one of the good things that the center faces, related to“ Emirates Today, ”is that some of the litigants used to present news clippings for the center that were published in the newspaper, as they were included in the case file, in reference to the newspaper’s credibility with the reader.
The real estate sector
The real estate sector in the Emirate of Dubai represents one of the main economic sectors in the economic growth, and it contributes effectively to the growth of its economy. Over the past years, the emirate has achieved record rates of economic growth, driven by the economic initiatives and incentives that the Dubai government is undertaking with the aim of raising economic growth and stimulating various economic sectors. .
The value of the GDP of the Emirate of Dubai reached 407 billion dirhams in 2019, compared to 389 billion in 2018, with a growth rate of 2.2%.
The real estate activities sector's contribution to the GDP of the Emirate of Dubai reached 7.2% during 2019, and the sector achieved an added value of more than 29.4 billion dirhams, with a growth rate of 3.3%, compared to 2018.
Real estate transactions achieved remarkable growth during the year 2019 in terms of the number and value of real estate transactions, and this improvement continued during the first months of 2020, and the growth rate achieved in the number of real estate transactions reached 8% during the year 2019, with more than 57 thousand real estate dispositions.
The value of real estate transactions amounted to approximately 226 billion dirhams in 2019, compared to the value of 221 billion dirhams in 2018, with a growth rate of 2.1%, and this improvement in the value of real estate transactions is due to the remarkable growth in the value of sales and mortgages.
In addition, the number of real estate investments during the year 2019 amounted to more than 47 thousand investments, with a growth rate of 18%, compared to the number of real estate investments during 2018, which achieved 40 thousand real estate investments.
In 2019, the number of real estate investors reached more than 34,000 real estate investors, with a growth rate of 14%, compared to the number of investors in 2018, which reached 29.8 thousand real estate investors.
The passport to the enforcement judge, in the event that the tenant does not pay the rent, guarantees the rights of the owner.
Rental disputes went through an upward curve, from March, reaching a peak from July to September.
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