Dubai's New Law To Boost Real Estate Investment Funds

Eligibility to avail the benefits from this law:

• The law will create a register for property investment funds including the licensed and regulated funds by government bodies. This will be applicable in the private and free zones- covering all the real estate in Dubai.
• The applicants should have real estate assets of AED 180 million or above
• Applicants should ensure that these funds are not suspended from trading on the Dubai Financial Market at the time of application.
• They must also be licensed by regulators such as the Securities and Commodities Authority or the Dubai Financial Services Authority in the DIFC.

Benefits under the new law

• Establishment of a ‘Committee for Property Investment Funds,’ to identify the areas and properties having either full ownership or lease (period not exceeding 99 years) but the funds are allowed to invest in.
• A minimum of Dh 50 million should be the market value of the property owned by the funds and according to Dubai Land Department, the property should have an investment return.
• The new law mandated the appointment of an independent appraiser ensuring the transparency in valuation of assets- approved by the Real Estate Regulatory Agency.

How the law will be maintained

• Formation of a dedicated committee to identify areas and properties that funds are allowed to invest in
• DLD- Dubai Land Department will appoint a valuation specialist who will determine the property's value owned by the funds

Main Aim Behind The Law

Attract more foreign investors with real estate taking the center stage.Looking at the recent developments and the real estate market; a whole lot of appreciation is observed and a rebound in the market has been seen with the increased transaction volume, this law will further increase the sale and bring more transparency.