Last Month in Real Estate: December 2020
- New Law on Projects in Dubai
- Laws Passed on Timeshare Properties in Dubai
- RAK Developer Offers Investors 12-year Residence Visa
- Deira Islands Opens the First Hotel
- Launch of a New Upscale Neighbourhood in Sharjah
- Abu Dhabi Developer to Deliver 4,000 Properties
Now that we are ready to welcome 2021, it’s time to see how the real estate market fared during the current month. The property sector in the UAE announced some major developments in the last month of 2020. From laws regarding incomplete real estate developments to the launch of an extravagant neighbourhood in Sharjah, read on for all the highlights of December 2020’s UAE real estate news!
Latest real estate news in the UAE for December 2020
Here is a recap of all the recent updates in real estate for December 2020:
New Dubai law on unfinished and cancelled property projects
Dubai recently launched new legislation regarding the regulation of revoked and incomplete real estate projects in the city. Initiated by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, the Ruler of Dubai, these laws are part of a new Decree No. (33) of 2020. According to the decree, a new committee is also being set up to oversee the liquidation of such projects.
According to a post shared by the Dubai Media Office, there are two parts to the new decree:
- The name of the Special Tribunal, chosen to oversee the liquidation of the mentioned developments, has been changed to the Special Tribunal for Liquidation of Cancelled Real Estate Projects in the emirate of Dubai and Settlement of Related Rights. The tribunal will be responsible for taking care of claims and disputes that were not finalised by the previous committee and to define the rights of buyers and investors after cancelled projects are liquidated.
- A new amendment regarding the Interim Real Estate Register which states that developers who fail to complete property developments due to unforeseeable reasons must “refund the entire amount paid by purchasers.”
For a better understanding of the new law, it’s well worth checking out our in-depth overview of Dubai’ new law on incomplete real estate projects.
Dubai introduces strict laws on the regulation of timeshare properties
A new law has mandated that the Department of Tourism and Commerce Marketing in Dubai (Dubai Tourism) is responsible for overseeing the marketing, management and sale of timeshare properties. Law No. (14) of 2020, was announced by His Highness Sheikh Mohammed bin Rashid Al Maktoum — Vice President and Prime Minister of the UAE — and is part of the country’s efforts to create more opportunities in its real estate sector, especially in vacation ownership.
Timeshare ownership offers a shared property ownership model regarding vacation real estate, where multiple buyers can share a property’s cost to guarantee their time at the same property. Each owner holds a leased interest in the property.
As part of its responsibilities, Dubai Tourism will develop the standards required for timeshare properties to obtain legal permits for a renewable period of one year. The establishment will also coordinate with the Dubai International Financial Centre (DIFC) and the Dubai Land Department (DLD) in all timeshare operations related to the registration of timeshare contracts, brokers and developers. Also, the purpose of the recent legislation is to ensure that the timeshare industry in Dubai adheres to international best practices, thereby paving the way for investor confidence and boosting the UAE’s tourism sector.
The timeshare model may apply to various properties like condominiums, apartments, villas and vacation resorts. All timeshare operators are required to comply with the new regulations within six months of the effective date.
Ras Al Khaimah developer offers 12-year visa to investors
In other UAE property news for December 2020, RAK-based real estate developer Al Hamra made investments sweeter on two of its projects this December — by offering a business licence and a 12-year resident visa as part of the package. Investors who purchase ready seafront or golf-view properties in Bab Al Bahr or Al Hamra Village will be entitled to these benefits.
The recent deal was launched by Al Hamra Real Estate Development company in partnership with the Ras Al Khaimah Economic Zone (RAKEZ). The business licence will allow buyers to undertake several corporate activities of their choosing, acquire a partner visa and a flexi-desk with modern amenities.
Payments on the investments can be made during a five-month period, with 20% of the total value as an upfront payment. Al Hamra Village and Bab Al Bahr are considered two of the most desirable developments in Ras Al Khaimah. They are admired for their modern amenities, scenic views of the Arabian Gulf, access to beautiful golf courses, and a whole lot more.
Check out our guide to setting up companies in RAKEZ for a better understanding of the economic zone.
Dubai’s new Deira Island opens first hotel
The first property on Deira Islands opened earlier in December. The all-inclusive 800-room resort, known as Riu Dubai, is a collaborative venture between Spain’s Riu Hotels and Resorts and Nakheel. Situated off the coast of Deira, Deira Islands is a clutch of four isles connected by bridges and will add another 40km of coastline to Dubai. This also includes 21km of new beachfront.
Aside from residential units, the four-star island resort will feature 10 restaurants and bars serving a range of cuisines including Lebanese, Asian and Italian food. Other perks include three swimming pools, two children’s pools, a fitness centre, beauty salon and a RiuLand kids’ club for young visitors and residents.
Apart from the 24-hour service and a slew of desirable amenities, the newest attraction on the man-made islands also features a water park called Splash Water World.
Sharjah developer announces the launch of a new upscale neighbourhood
In other December 2020 UAE real estate news, Sharjah-based developer Arada announced construction on the new Naseej District. The development will begin during the first quarter of 2021.
Located within an AED 24 billion megaproject in the heart of New Sharjah, the Naseej District is an upscale residential area which will have 16 apartment buildings. The term Naseej means “fabric” in Arabic, and the project reflects the culmination of a range of skills, backgrounds and talents of the emirate’s creative community. As part of its development, the Naseej District will also include cultural attractions.
According to Arada chairman, His Highness Sheikh Sultan bin Ahmed Al Qasimi, “The introduction of Naseej District is another step in Sharjah’s journey to embrace art and culture as a way of living. We are working to curate a thriving community that will house some of the region’s finest creative talent, while also becoming a destination for those who seek authentic and engaging cultural activities.”
Both residents and visitors to the new neighbourhood will enjoy a variety of easily accessible retail, cultural and art destinations. Plans are also underway to feature a beautifully designed “showpiece” building that will feature a museum, art galleries and an exhibition space.
The Naseej District will be located at the heart of Aljada, which is Sharjah’s newest coveted address.
Reportage Properties to deliver 4,000 homes in Abu Dhabi and Dubai
Abu Dhabi-based real estate developer, Reportage Properties will deliver around 4,000 units in Dubai and the capital city. According to the CEO of the real estate company, Islam Ahmed Suleiman, the move aims to take advantage of the improvement in the UAE real estate market, which has recently shown an uptick in sales in 2020.
A part of the development is Rukan Tower built in collaboration with Continental Investment in Dubailand. The underdevelopment project includes more than 600 apartments and will provide residents access to facilities like parking areas, a swimming pool, gym, playground, 12 elevators, a jogging track and more.
That’s all for our coverage of UAE real estate news for December 2020. For a more comprehensive perspective of the UAE property industry, check out Bayut’s eleventh webinar on the real estate success stories. You can also find out more about renting and buying post-lockdown on our recent episode of Real Estate Bytes.
Finally, rest assured that we’re constantly committed to bringing you all updates on the latest and greatest real estate projects launched across the whole of the UAE. Projects such as the SLS Dubai Residences by WOW Real Estate Development in Dubai.
For all the latest UAE real estate market news, stay tuned to MyBayut!
