Media ININ Economy We Trust
median IN\ abu dhabi 20-04-2019
The new adjustment to the Abu dhabi real estate ownership law that allows foreigners full ownership of property in designated zones will not only increase investors’ confidence but also promote transparency in the real estate market and boost long term investments, said a chief developer Abudhabi.
Mr. Talal Al Dhiyebi, CEO Aldar properties said at a press conference on changes to real estate ownership law on Thursday that:
“The law now allows non -UAE nationals or foreigners to own freehold titles in investment zones of Abudhabi with title deeds. Previously, it was a 99 year lease. But this fundamental shift in the market where investors now get full freehold ownership of land or properties will boost economic activities in Abudhabi”.
“The new rules will also reduce the cost of registering the land because in the past, under the long lease, it was costing the investors 4% (of the value of the property) and now it will be 2%, which essentially is a key to development” .
Al Dhiyebi said the real estate market in Abudhabi projects a 40 to 50 percent growth in the off plan sales in 2019 compared to 2018 with specific targets to new international markets such as India and China where investors from those parts of the world have shown a lot of interest to invest in Abudhabi, but were hesitant because the lack of freehold title deeds.
UAE President, Sheikh Khalifa Bin Zayed Al Nahyan on wednesday issued a law amending some provisions of law No. 19 of 2005, which regulates the real estate sector and property ownership in the emirate.
under the new amendment, non Emiratis and companies owned by foreigners are allowed to own and acquire all the rights of properties within investment zones. Before , ownership of property was only allowed for UAE and GCC nationals.
Mr Falah Mohammed Al Ahbabi, Chairman, Department of urban planning and municipalities in Abudhabi said during a press confress: “with the amendment to the real estate law, residential units in special designated investment zones, will be registered under Abudhabi’s freehold law, with property ownership deeds issued to investors. Presently , there are 29 investment zones in Abudhabi”.
“The changes in the law would benefit everyone including investors and developers, boost the real estate market and add value to Abudhabi’s economy”.
Saif Mohammed Al Hajeri, Chairman of Abudhabi’s department of economic development said “The new real estate law will definitely enhance 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.
Prior, there has 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 also noted that the new amendment to the real estate law come on the background of other schemes introduced recently by the government such as the issuing of long term visas for investors as well as the law allowing certain corporate to own 100 percent of their companies in specific industries.
All these have been aimed at boosting economic growth and development in Abu dhabi, he added.
