Introduction

Real estate is considered to be among the fastest-growing sectors in the UAE. In the first quarter of 2025, real estate activities grew by 6.6%, contributing 7.4% to non-oil GDP. 

Over the past decades, the UAE has introduced several initiatives to develop the construction and real estate sectors, from Dubai Law No. 7 of 2006 to the new real estate law, Dubai Law No. 7 of 2025, Regulating Contracting Activities in the Emirate of Dubai. 

While most of these laws have strengthened protections and accountability, they have created obligations for everyone involved, including buyers, sellers, landlords, and tenants. Understanding UAE real estate law, including real estate and property law, is crucial for anyone looking to reside in the UAE to avoid legal disputes. 

What are the Key Real Estate Laws Governing Dubai and the UAE?

In the UAE, there are many different real estate laws, including those specific to an Emirate, such as Abu Dhabi or Dubai. 

Here’s an overview of the UAE law for real estate governing Dubai and Abu Dhabi:

Federal Real Estate Law 

At the federal level, the UAE’s real estate framework is anchored in civil and financial legislation that governs property rights, inheritance, taxation, and compliance.

The UAE Civil Code (Federal Law No. (5) of 1985) 

  1. Defines “Real Property” 
  2. Regulates general contracts and liability enforcement.

Federal Decree-Law No. 41 of 2022 On the Civil Personal Status

  1. Allows non-Muslim expats in the UAE to request the application of their home country’s laws in matters of inheritance and succession of properties

Crucial Note: Unless a non-Muslim files an explicit request for application of their home country’s laws, real estate and properties would be passed on as per the Sharia inheritance laws. 

Anti-Money Laundering (AML) Regulations

  1. Subjects real estate and property transactions to the AML regulations
  2. Provides additional due diligence requrements for parties in a real-estate transaction in the UAE

UAE VAT Law (Federal Decree-Law No. 8 of 2017)

  1. Introduced the VAT payment on properties, including VAT registration. 
  2. Different VAT percentage for residential, commercial, properties, bare land, and local rent

‍Important: Developers and investors must ensure proper VAT registration before engaging in any real estate transaction. 

Crucial Note: In addition to VAT, other payments may include the DLD Transfer Fee, Document Issuance Fee(s), and any service charges.

Dubai Real Estate Laws 

In Dubai, real estate activities are governed by a comprehensive framework of emirate-level laws that regulate property ownership, leasing, registration, development, and construction.

Dubai Law No. (7) of 2006 Concerning Real Property Registration in the Emirate of Dubai

  1. Regulates the right to own, register, and transfer real property within Dubai
  2. Establishes the Property Register and outlines procedures for title registration
  3. Provides for the issuance of inheritance certificates related to property ownership

Dubai Law No. (26) of 2007 (as amended by Law No. 33 of 2008)

  1. Governs the relationship between landlords and tenants in Dubai
  2. Defines the rights and obligations of both parties
  3. Regulates lease terms, renewal, rent adjustment, and termination procedures

Dubai Law No. (8) of 2007 Concerning Escrow Accounts for Real Estate Developments

  1. Requires every real estate developer to open a dedicated escrow account for each project
  2. Ensures that purchaser's funds are deposited into and used exclusively for that project
  3. Enhances transparency and protects investors in off-plan developments

Dubai Law No. (13) of 2008 Regulating the Interim Real Estate Register in the Emirate of Dubai

  1. Mandates registration of all off-plan property sales with the Dubai Land Department
  2. Ensures developers disclose project details and maintain accurate sales records
  3. Protects buyers and promotes accountability in the off-plan property market

Dubai Law No. (4) of 2019 Concerning the Real Estate Regulatory Agency (RERA)

  1. Expands RERA’s authority to regulate developers, brokers, and real estate projects
  2. Introduces stronger mechanisms for compliance, governance, and real estate dispute resolution
  3. Strengthens market transparency and investor protection

Dubai Law No. (6) of 2019 Concerning Ownership of Jointly Owned Real Property in the Emirate of Dubai

  1. Recognizes multiple project types that can be subdivided into individually owned units
  2. Increases the role of property owners in managing and operating their developments

Dubai Law No. (7) of 2025 Regulating Contracting Activities in the Emirate of Dubai

  1. Establishes a unified legal framework for all contracting and construction activities
  2. Requires contractors to be registered and classified under a standardized system
  3. Aligns construction regulation with real estate development laws
  4. Aims to enhance quality, safety, and accountability across the construction sector

Abu Dhabi Real Estate Laws

Abu Dhabi’s real estate laws govern property registration, ownership rights, and development regulation. They define foreign ownership limits, mandate developer licensing and escrow controls, and regulate PPP and contracting activities to ensure transparency and compliance across all projects.

Law No. (3) of 2005, Concerning the Regulation of Property Registration in the Emirate of Abu Dhabi

  1. Regulates the transfer of property in Abu Dhabi (excluding the Abu Dhabi Global Market (ADGM) free zone)
  2. Creates a property register to record all property rights in Abu Dhabi
  3. Establishes the Real Estate Registration Division (RERD) under the Abu Dhabi Municipality

Law No. (19) of 2005, Re-organising Real Property in Abu Dhabi (as amended by Law No. (2) of 2007)

  1. Formalises the Abu Dhabi real estate ownership law for foreigners and non-UAE nationals
  2. Designates investment areas where non-UAE nationals can own land and property
  3. Provides long-term leasing options for foreign ownership outside designated investment and freehold areas

Law No. (3) of 2015, Concerning the Regulation of the Real Estate Sector in Abu Dhabi

  1. Mandates registration and licensing of real estate brokers, developers, and surveyors
  2. Establishes a framework for off-plan property sales and escrow account protection
  3. Increases compliance and licensing requirements for developers to ensure transparency

Please Note: Construction-linked sales or off-plan purchases may carry significant legal and financial risk. Review developer agreements, payment schedules, and escrow arrangements to safeguard interests before finalizing the transaction. 

Law No. (2) of 2019, Concerning Public-Private Partnership (PPP) Projects in the Emirate of Abu Dhabi

  1. Provides a comprehensive legal framework for public-private partnerships
  2. Regulates the financing, construction, and operation of infrastructure and development projects
  3. Defines performance standards, risk allocation mechanisms, and remedies for delays or non-performance

Department of Municipalities and Transport (DMT) Contractor Classification Regulations (2021)

  1. Regulates licensing, grading, and classification of contractors and consultants in Abu Dhabi
  2. Requires contractors to be registered and classified before starting projects
  3. Bases its classification on financial capacity, technical expertise, and project experience

Get Legal Guidance: Planning to buy, sell, develop, or rent a property in Dubai or Abu Dhabi? Kayrouz & Associates’ Real Estate Team has expertise in UAE real estate law and provides specialized solutions for real estate property transactions in Dubai, UAE, and the Middle East region. 

What is the Real Estate Disputes Resolution Framework in the UAE?

The UAE has many channels and mechanisms for resolving real estate disputes. The most commonly used real estate dispute-resolution frameworks in the UAE are listed below.

Dubai

Dubai has specialised, multi-layered real estate dispute-resolution bodies that ensure efficiency and fairness in every adjudication. 

  1. Real Estate Disputes Settlement Centre (RDSC) (established under the Dubai Decree No. 26 of 2013)
  2. Dubai Civil Courts 
  3. Dubai International Financial Centre (DIFC) Courts
  4. Dubai International Arbitration Centre (DIAC)

Abu Dhabi

In addition to civil courts, most of the real estate dispute framework in Abu Dhabi is overseen by the following bodies:

  1. Abu Dhabi Department of Municipalities and Transport (DMT)
  2. Abu Dhabi Dispute Resolution Committee 
  3. Abu Dhabi Global Market (ADGM) Courts

If you’re dealing with a complex real estate conflict, the dispute resolution property lawyers and commercial property dispute resolution solicitors at Kayrouz & Associates offer strategic guidance and representation across every stage of property dispute resolution.

What are the Emerging Trends in UAE Real Estate Regulation?

As evidenced by the Dubai Real Estate Sector Strategy 2033, the UAE plans to significantly increase transaction volumes and reinforce its real estate sector as the foremost avenue of foreign investment. 

Here are the emerging trends that may affect or share the UAE real estate regulation.

Real Estate Tokenisation

The UAE is embracing blockchain and real-estate tokenisation to fractionalise real estate ownership. This allows investors to buy and sell digital tokens that represent shares in a physical property. 

Green and Sustainable Building Regulations

New real estate laws, such as Dubai’s Green Building Regulations and Abu Dhabi’s Estidama Pearl Rating System, mandate developers to meet green and sustainable development standards and regulations to maximise the efficiency of:

  • Design
  • Constuctions
  • Energy

Modernized Dispute Resolution

From digital filings to the adoption of alternative dispute resolution methods, the UAE is reshaping how real estate disputes will be adjudicated. 

The DIFC and ADGM Courts plan to adopt online filing, remote hearings, and digital evidence submission. This will usher in a faster, more transparent real estate dispute-resolution process and complement the systems of discussion, conciliation, mediation, and arbitration before instituting litigation. 

How Kayrouz & Associates Can Help Manage the UAE Real Estate Law?

Did you know that under the “Three Broker Rule,” a property seller in Dubai can only list it with three brokers simultaneously? 

In the UAE, there are specific rules for every party in a real estate transaction, under the real estate laws and regulations of Dubai, Bylaw No. (85) of 2006, Regulating the Real Estate Brokers Register, there are also specific laws for real estate brokers. 

As a leading law firm in the UAE and the Middle East, Kayrouz & Associates’ Real Estate Law Team has several highly experienced attorneys, including our founder, Mr. Pierre Kayrouz. 

Since 2006, we have successfully resolved more than 570 cases, securing the best possible outcomes for our clients. 

Here’s where we can help real estate sellers, buyers, construction companies, property managers, brokerages, and finance organisations in Dubai and Abu Dhabi:

  1. Construction-linked sales and off-plan purchases
  2. Land use, zoning, and planning
  3. Property ownership and title disputes
  4. REITs and real estate investment structures
  5. Real estate finance and mortgages
  6. Real estate litigation and arbitration
  7. Strata law and community management
  8. Tenancy and lease agreements

Book a free consultation or visit our offices in Dubai and Abu Dhabi to get tailored, end-to-end legal solutions from expert lawyers backed by real-world practical experience. 

Frequently Asked Questions

Can a Foreigner Buy Property in Dubai or Abu Dhabi With Full Ownership?

Yes, a foreigner can buy property in Dubai and Abu Dhabi with full ownership in designated freehold areas, free zones, and other investment areas. Alternatively, foreigners can lease properties in the mainland for 50 or 90 years, with limited ownership rights. 

What Are the Document Requirements for Real Estate Transactions in the UAE?

In accordance with the real estate laws and regulations, the Abu Dhabi and Dubai laws for real estate, the following documents are generally involved in the transaction:

  • Emirates ID and a copy of the Passport
  • Proof of funds 
  • UAE bank account (if applicable)
  • Company/partnership documents (if applicable)
  • Proof of Address 
  • Title Deed or Oqood certificate (for off-plan properties) 
  • NOC from Developer 
  • Clearance Certificate 
  • Sale or tenancy agreement

Which Properties Should Be Registered in the UAE?

In the UAE, different types of rights over properties should be registered compulsorily. While all sale/purchase transactions are registered, there are other registration requirements for lease rights. 

Here’s an overview of the real estate and property law:

  1. Abu Dhabi: In Abu Dhabi, even a lease of less than 4 years needs to be registered on the Tawtheeq system. 
  2. Dubai: Typically, a lease of less than 10 years is registered with RERA, and a lease of more than 10 years (but less than 99 years) is registered with the DLD's Real Estate Register.

‍

Let’s talk

Your success starts with the right guidance.

Whether it’s business or personal, our team provides the insight and guidance you need to succeed.

contact us