Soon, Dubai to get new, more transparent rental law

Buoyed by the remarkable transactions worth AED 77 billion in the real estate sector in the first quarter of 2017 and bringing more transparency, Dubai Land Department is working on a new rental law that will give separate weightage to commercial real estate such as offices, malls, health and educational property.

Dubai will soon get a new rental law which will bring more transparency in the real estate sector.
Dubai will soon get a new rental law which will bring more transparency in the real estate sector. Photo courtesy:

After the law is passed, each property asset class will have its own rental index and contractual obligations between negotiating parties. Passing of this law will also signal  another major step up for Dubai’s property market in terms of having a more equitable relationship between tenant and landlord. Currently, the Dubai Rental Index, dominated by residential property, is updated annually.

At present, the law is in front of the legislative committee and will replace the existing one-size-fits-all rental regulation.

Marwan Bin Ghalita, head of Real Estate Regulatory Agency, which comes under the Land Department said, “We wanted a new rental law that covers all types of property assets and not just draw on the provisions within a single, unified law.”

In addition to this, changes in other regulations are also in the pipeline. This includes laws governing homeowners associations that will be “clarified” to bring in more transparency, officials said. The Land Department wants to clearly define the rights of developers and property owners.

Ashraf Jamal
Ashraf Jamal – Senior Writer

Ashraf Jamal brings a rare depth to writing equipped with a degree in journalism, a postgraduate degree in political science, and a degree in law from the Allahabad University. His experience includes editing and publishing the Northern India Patrika and writing for Times of India for almost a decade covering just about any topic under the sun including NRIs and Indian diaspora.


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