UAE: Dubai launched a recent law to regulate the allocation of ‘Musataha’ rights on commercial lands in the city, striving at promoting Dubai’s status as a favoured global real estate investment destination.
The new law authorised by Vice President and Ruler of Dubai, Sheikh Mohammed bin Rashid, aims to regulate the usage of commercial lands in Dubai by giving the right of Musataha to build real estate projects.
A Musataha is a distinctive type of investment collaboration between the private and public sectors, granting an investor right to build a particular plot of land for a specific time.
According to the law, the Musataha agreement makes a real property right which allows its holder to build a building or invest in, lease, mortgage, sell or buy a plot of land belonging to a third party for a time of 35 years. The agreement can also be extended for around 50 years.
The request regarding renewal has to be provided two years before the expiry date of the agreement, said the statement.
The agreement’s holder has to follow by different rules and regulations, it further added.
For example, they must register the agreement with the DLD (Dubai Land Department) registry or the Dubai International Financial Centre register, and they are not allowed to change the usage of commercial land without acquiring the prior consent of the owner.
The United Arab Emirates property market showed strong growth last year, with an equivalent trend persisting into this year also as the nation’s economy is recovering after the COVID-19 pandemic.
Economic support measures, as well as government initiatives like the residency, allow for those who have retired and also the remote workers, in addition to the development of the 10-year golden visa programme, which also helped in boosting the market sentiment.