Out of the box

Local real estate under silent laws

Ismail Al Hammadi

April 19, 2022

Real estate outside freehold areas or in local areas, an investment mechanism, the concerned authorities should review and renew their laws, in line with the trends of the real estate sector in Dubai, and in parallel with the updates that have occurred in real estate investment in freehold areas.

In light of the freedom of real estate owners in the freehold areas to dispose of their properties, the owners of real estate in the local areas remain subject to conditions to say the least that are difficult to dispose of their properties, while if they have the opportunity, as is available in the freehold areas, this will add value to the real estate sector, With it, real estate transactions will grow, such as selling, mortgaging, gifts and others.

There is permanent suffering for real estate owners in local areas, which has not been discussed or talked about on any occasion, and some of them reached the corridors of the courts, where the property owner cannot control the movement of his real estate investments in the market outside the freehold areas, as he by law owns the land that The property is built on it, and he does not have the right to dispose of the units it contains, therefore, he cannot offer them for sale in part, except for rent, since the only purpose and objective guaranteed by law (investment in the property for the purpose of rent), as the law requires him to mortgage the entire property, not a unit From him, in the case of requesting a loan, even if the loan is small, and here he is unable to achieve his goal from his real estate, and the complications increase more in cases of inheritance.

In view of the rapid developments witnessed by the investment law in the freehold areas, the investment law in the local areas destined for citizens remains lacking in the doses of renewal that would raise the value of these areas on the sector’s overall investment map, and give a strong impetus to the local investor, to contribute to promoting The activity of the real estate sector, raising its global competitiveness, and enriching the market. Among those areas, for example, are the old “Deira” and “Bur Dubai” areas, as I see them as additional incentives to the trading record in these areas, if the legislation in force in these areas The areas are changing slightly in line with the investment legislation in the freehold areas, without foreign ownership and limiting them to what it is currently, to add a great value to the real estate market in Dubai, because they are attractive areas, and they deserve to be renewed and promoted as new real estate investment areas, added to the map of Dubai real estate.

We are on the cusp of the beginning of a new phase in the life of the state, and its various economic sectors, and on the verge of new development plans and strategies to raise the value of investments in the main sectors. Reconsidering the real estate of local areas, and activating the common areas management system within clear legislation, may be considered a turning point in the history of the sector. Real estate, which is a basic economic pillar, in addition to opening the way for the development of these areas by encouraging citizens to acquire a larger amount of real estate units, and pushing them to enter into new investments, which provides more options for those wishing to purchase and final use of the real estate unit.

To this hour, these lines are just a proposal for an idea that serves areas outside the freehold, awaiting the attention of those concerned with decision-making, to study it and find appropriate outputs for it.

• Real estate owners in local areas are subject to conditions, to say the least, that are difficult to dispose of their property.

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