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Mazaya Monthly Real Estate Report -
Week 4 - December 2015
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The new law also gives the real estate
sector more stability and improves the
investment environment by curbing
speculation,
protecting
investors,
developers, and real estate companies,
by improving transparency. Therefore,
the provisions of the new law will have
significant impact on the stability of the
market and will safeguard the rights of
developers, owners or their beneficiaries.
Title deeds for buyers of real estate units
will improve investor confidence in the
market and its governing laws, afford
peace of mind to investors, ensure growth
in the short-term, and enable owners of
new units to seek mortgages to get the
necessaryfinanceeasily.Thisisinaddition
to many more advantages, such as the
strengthening of the relationship between
the owners and financial institutions.
Supporting laws and regulations
With the Real Estate Regulatory Law
becoming effective from 1 January
2016, there is little doubt among
observers that the Abu Dhabi real
estate market is on the cusp of a
new era of stability and growth.
The new law stipulates requirements
for the issuance of work permits for
real estate practitioners, particularly
among brokers and surveyors. As per
the new law, developers must open
escrow accounts for new projects
and comply with the terms and
conditions of the off-plan sale, such as
gaining the approval of the competent
authority and their registration in
the “Interim Real Estate Register”.
Other articles in the law cover issues
relating to mortgages, the right of
Usufruct (long-term leasing) and
Musataha over the property, along with
the setting up of owners’ associations.
Al Mazaya Holding’s Weekly Real
Estate Report points out that the
competent authorities will now rely
on the provisions of the new law and
so the number of investors willing
to buy and own new properties in
Abu Dhabi is expected to double.
Moreover, many clauses and articles
laid down in the new law are intended
to regulate the activities of real estate
brokers and pave the way for fighting
the negative practices committed
by some real estate brokers, which
have previously been detrimental
to the emirate’s real estate market.
Abu Dhabi is currently forecasting
an increase in demand from
foreign investors who wish to buy
properties in prime locations such
as Saadiyat, Reem and Yas Islands.