Abu Dhabi's new property rules to boost inventor confidence

The new changes to the Abu Dhabi real estate ownership law that allows foreigners full ownership of property in designated zones will increase investors' confidence, promote transparency in the real estate market, and boost long term investments, said a chief developer in Abu Dhabi.
Talal Al Dhiyebi, CEO of Aldar Properties, told Khaleej Times at a press conference on Thursday that the law now allows non-UAE nationals, or foreigners, to own freehold titles in investment zones of Abu Dhabi with title deeds.
"Previously, it was a 99-year-lease. But, this fundamental game change is a shift in the market, where investors now get full freehold ownership of land or properties, and it will enhance economic activities in Abu Dhabi," he said. "The new rules will also reduce the cost of registering the land, because previously, under the long lease, it was costing the investors four per cent of the value of the property, and now it will be two per cent, which is fundamentally another game change development."
Al Dhiyebi also said that the real estate market in Abu Dhabi projects a 40-50 per cent growth in off-plan sales in 2019, compared to 2018, with specific targets to new international markets such as India and China, where investors had previously shown a lot of interest in investing, but were hesitant because of the lack of freehold title deeds.
In his capacity as Ruler of Abu Dhabi, the President, His Highness Sheikh Khalifa bin Zayed Al Nahyan, on Wednesday issued a law amending some provision of Law No.19 of 2005, which regulates the real estate sector and property ownership in the emirate. Under the new changes, non-Emiratis and companies owned by foreigners are allowed to own and acquire all the rights of properties within investment zones. Previously, ownership of property was only allowed for UAE and GCC nationals.
Falah Mohammed Al Ahbabi, chairman of the Department of Urban Planning and Municipalities in Abu Dhabi, said during a press conference: "With the changes to the real estate law, residential units in special designated investments zones, will be registered under Abu Dhabi's freehold law, with property ownership deeds issued to investors. Currently, there are 29 investment zones in Abu Dhabi. The changes in the law would benefit everyone including investors and developers, boost the real estate market and add value to Abu Dhabi's economy."
Saif Mohammed Al Hajeri, chairman of Abu Dhabi's Department of Economic Development, said: "The new real estate law will definitely increase transparency among investors and boost investment in the real estate sector as many businessmen will be encouraged to buy property and own land in the investment areas in Abu Dhabi. Previously, there have been many questions from various investors in regard to the ownership and trust, as the law was only giving them partial ownership of their properties."
Al Hajeri noted that the new changes to the real estate law come on the backdrop of other schemes introduced recently by the government such as issuing long-term visas for investors, as well as the law allowing certain corporates to own 100 per cent of their companies in specific industries. All these have been aimed at driving economic growth and support development in Abu Dhabi.
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