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New UAE Policies Reshaping Dubai’s Property Market
The UAE has unveiled a series of forward-thinking policies aimed at enhancing its property sector. These initiatives are fostering transparency, boosting investment opportunities, and ensuring sustainable growth in the real estate market. From introducing a smart rental index to granting freehold status for properties in key areas, these measures are expected to significantly impact the property landscape.
Dubai’s real estate sector continues to achieve impressive growth, setting new records in 2024. Over 2.78 million procedures were completed, with real estate transactions alone valued at AED761 billion. The sector also attracted investments of over AED526 billion and welcomed… pic.twitter.com/HVBKJQ4YnO
— Hamdan bin Mohammed (@HamdanMohammed) January 26, 2025
Key Highlights of New Policies
| Policy | Details |
|---|---|
| Smart Rental Index | Classification and rating system (1-5 stars) for residential buildings based on 60+ criteria. |
| Freehold Ownership Expansion | Private property owners on Sheikh Zayed Road and Al Jaddaf can convert properties to freehold. |
| Bank Financing Directive | UAE Central Bank restricts banks from financing DLD registration and broker fees for buyers. |
Impact of These Policies
- Smart Rental Index:
- Transparency: Enhances decision-making for tenants and landlords.
- Investment Attraction: Helps investors evaluate returns across Dubai’s neighborhoods.
- Freehold Status for Key Areas:
- Sheikh Zayed Road Transformation: 457 plots (128 on Sheikh Zayed Road, 329 in Al Jaddaf) eligible for freehold conversion.
- Redevelopment Potential: Older buildings (1970s-2000s) could see upgrades, creating vibrant real estate hubs.
- Bank Financing Directive:
- Increased Buyer Costs: Buyers need liquid funds for a 4% DLD fee and 2% agent fee.
- Impact on Small Investors: Higher upfront costs could deter small investors, reducing mortgage volumes.
Dubai’s Real Estate Growth in Numbers
| Metric | 2024 | Change from 2023 |
|---|---|---|
| Real Estate Deals | AED 761 billion | +20% |
| Transactions | 226,000 | +36% |
| Procedures (incl. rental agreements) | 2.78 million | +17% |
| Residential Price Growth | Apartments: +19%, Villas: +23% | Year-on-Year |
Recent Initiatives Boosting the Property Market
- Residency Program Enhancements:
- 10-year Golden Visa and permits for retirees and remote workers.
- Infrastructure Developments:
- Etihad Rail: High-speed train between Abu Dhabi and Dubai, reducing travel time to 30 minutes.
- Abu Dhabi Rental Index:
- Aims to improve transparency for tenants and landlords in the capital.
Why These Policies Matter
These policies reflect the UAE’s commitment to creating a sustainable, investor-friendly property market. By balancing opportunity with oversight, they address key areas:
- Attracting foreign investment through transparency and freehold ownership.
- Supporting long-term economic diversification goals.
- Enhancing livability and infrastructure for residents.
Contact Evantis Realty Dubai
- Phone: +971 54 480 9359
- Email: info@evantisrealty.com
- Website: https://evantisrealty.com/
- Off-Plan Property: Explore More Off-Plan Properties
Reference Links
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