Understanding Dubai’s Real Estate Laws and Regulations in 2025

Dubai’s real estate market is based on a strong legal framework, with the Dubai Land Department DLD acting as the guardian of all property transactions in the city. RERA is another regulatory authority that operates under the DLD and establishes the rules and regulations for real estate in Dubai to ensure safety and transparency. The real estate sector in Dubai contributes a lot to boosting the city’s economy. In recent years, the government has introduced comprehensive legislative systems that have become a turning point for the sector. These laws have streamlined the property transaction process, addressed common legal challenges faced by buyers and sellers, and helped reinforce trust in the market. As a result, Dubai’s real estate landscape today stands as one of the most secure and dynamic markets globally, backed by a clear and systematic legal structure. In this blog, we will explore the legal landscape and understand the rules and regulations in Dubai’s real estate.

Real Estate Laws in Dubai

Dubai is one of the most demanding cities in the world. Its economy largely depends on tourism and the real estate industry. That is why this city has the fastest-growing real estate market in the world. If you have a clear understanding of real estate laws, you can make a successful property investment. So, if you want to purchase a property in Dubai, here are some important property laws you must know before entering the real estate market.

Property Ownership Law In Dubai

Law No. 7 of 2006 is a major real estate law that governs property ownership in Dubai. Article 4 of Law No. 7 of 2006 outlines who is eligible to own and purchase property in Dubai. According to that law, you can purchase a property anywhere in Dubai if you are a GCC Citizen or a UAE Citizen. Foreign nationals and non-residents can also buy property in Dubai, but only in designated areas specified by Dubai’s government for foreign property ownership.

Rental Property Laws in Dubai

Investing in rental property in Dubai is very popular due to the higher rental yields. That’s why Dubai’s government introduced rental property laws to protect the rights of tenants and landlords. Laws such as Law No. (26) of 2007 and its amendment Law No. (33) of 2008 regulates the landlord-tenant relationship in Dubai, while Decree No. (26) of 2013 established the Rental Disputes Settlement Centre (RDC) to resolve rental disputes, and Decree No. (43) of 2013 governs rent increases across the emirate.

Let’s have a look at the key rental laws:

Landlord-Tenant Relationship Laws

• All lease contracts must be registered with the Real Estate Regulatory Agency (RERA).
• Contracts should detail the property description, lease purpose, duration, rent amount, payment method, and the landlord's identity if not the owner.
• If a tenant continues occupancy after the contract expiry without the landlord's objection, the lease renews for the same term or one year (whichever is shorter), under the existing terms.​
• Landlords must provide a 12-month written notice, sent via registered mail or through a notary public, for eviction due to a property sale, self-use, or major renovations.
• Landlords are obligated to return the tenant's security deposit within 14 days of lease termination, after deducting any dues.​
• Tenants can terminate the lease early without penalties by providing a 90-day written notice to the landlord.

Rent Increase Laws

• No Increase: If the current rent is less than 10% below the average market rate.
• 5% Increase: If the current rent is 11% - 20% below the average market rate.
• 10% Increase: If the current rent is 21% - 30% below the average market rate.
• 15% Increase: If the current rent is 31% - 40% below the average market rate.
• 20% Increase: If the current rent is more than 40% below the average market rate.​

Inheritance Property Laws in Dubai 

Inheritance property laws in Dubai are more complex than those in other jurisdictions. If the property owner has dual nationality, the inheritance law must also take into account the laws of the other country. That is why it is important to assign the property a legal beneficiary.

If the owner has no valid will, the court will decide whether the property should be given to the state or divided among the recipients. That is why all foreign investors in Dubai must have a legal will to save their property for their dependents.

Dubai Strata Law

Another important Dubai real estate law is the Strata Law, which applies to multi-unit developments such as apartments and townhouses. Law No. (6) of 2019 replaced by Law No. (27) of 2007 provides a comprehensive framework for the management and operation of jointly owned properties. The Strata Law’s main principle is the division of a property into privately owned units and jointly owned common areas, which an owners' association then manages. This law outlines the rules for managing and maintaining common areas and facilities in these types of properties.

• Developers are obligated to rectify structural defects for 10 years and defects in mechanical, electrical, and sanitary installations for one year from the date of completion.
• The RDSC holds exclusive jurisdiction over disputes related to jointly owned properties, streamlining the resolution process. ​
• Non-compliance may result in fines up to AED 1,000,000, with potential increases for repeated violations.

Updates to Laws Regarding Real Estate in Dubai

The government of Dubai has introduced some new regulations on certain real estate issues, as stated below.

Law Number 19 of 2020 - Dubai Interim Registration Law

Law No. 19 of 2020 amends Article 11 of Law No. 13 of 2008 regarding Interim Registration in Dubai. According to the new law, the Dubai Land Department can initiate a challenge to a previous decision and cancel a sale and purchase agreement registered on the interim register based on specified circumstances.

Law Number 32 of 2020 - Land Designated for Educational Use

Law no. 32 of 2020 outlines that the ownership of plots and lands designated for educational purposes shall be transferred to the Knowledge Fund. Real estate developers can retain ownership of such lands and plots by paying the Knowledge Fund 75% of the market value. The payment can be made in instalments over a maximum of 35 years. 

Law Number 33 of 2020 - Liquidation of Cancelled Real Estate Projects in Dubai

Law No. 33 of 2020 replaced Law No. 21 of 2013 and extended the jurisdiction of the Judicial Committee to incomplete and cancelled real estate projects. The Judicial Committee also has the authority to handle RERA’s transfer of matters with consideration and resolution.

Updated Residency Visa Requirements

Dubai has updated its real estate visa rules to attract more investors. Now, if you buy a property worth at least AED 750,000, you can apply for a 2-year investor visa. If your property investment is worth AED 2,000,000 or more, you can apply for a 10-year Golden Visa. These new rules are designed to encourage long-term investment in Dubai’s real estate market.

Three Broker Rules

The three-broker rule, established by DLD in October 2022, states that a property cannot be listed with more than three brokers at a time. The purpose of this rule is to reduce the number of listings so that clients looking for properties can have a better experience. This way, brokers and agencies can also deliver their services more effectively.

Using a Conveyancer

While Dubai has real estate laws and regulations in place to protect buyers, the complex nature of property transactions means it is still crucial to use a conveyancer to navigate the process. A conveyancer will oversee the legal transfer of a property from the seller to the buyer. This includes drafting and reviewing the contract terms and carrying out various complex legal, financial, and administrative duties required.

Utilise our Conveyancing Services for fast and transparent property transfers.

Regulations for Real Estate Developers

Under the regulations set by RERA, real estate developers must obtain a license from the authority before commencing any real estate development project. The law also requires developers to provide detailed information about their projects, including the location, size, and type of units that are being developed. In addition, RERA states that developers must maintain a trust account for each one of their projects. All amounts paid by buyers are deposited into the trust account to ensure that all funds are used towards completing the project.

Conclusion

The real estate market of Dubai is one of the most dynamic, stand-out, and continuously evolving markets in the world. Whether you are an investor, a homeowner, or interested in the real estate industry, understanding Dubai’s real estate regulations is a must. It's essential to have a trusted partner to navigate this broader market. 

Contact us today and start your journey towards secure and rewarding property ownership in Dubai.