Dubai’s real estate market is largely built around jointly owned properties: apartments, offices, and mixed-use developments. Understanding how these assets are managed is key to protecting and enhancing investment value. Law No. 6 of 2019, which replaced the earlier 2007 framework, marked a significant shift in how these properties are governed, moving the market toward a more structured and institutional approach.
Under the previous system, property owners automatically became members of an owners’ association responsible for the management, operation, and maintenance (MOMing) of the common areas. While this gave owners direct involvement, the results were not always consistent. In practice, varying levels of expertise and engagement often led to inefficiencies, service gaps, and, in some cases, disputes that affected both the asset’s performance and its long-term value.
The current framework takes a more streamlined approach. Developments are categorized into major projects, hotel projects, and all other real estate projects—the latter representing the majority of properties in Dubai. In these cases, the MOMing of common areas is no longer handled by owners themselves but by specialized management companies appointed and overseen by RERA. This shift places day-to-day operations in the hands of professionals, bringing greater consistency and accountability across developments.
From an investment perspective, the strengthened role of RERA is a key advantage. Its ability to supervise, appoint, and replace management companies introduces an additional layer of protection, addressing one of the most common risks in jointly owned properties: poor management. Over time, this translates into better-maintained assets, more predictable service charges, and fewer operational disputes.
That said, owners are not removed from the equation. Their role has evolved. Owners’ committees, appointed by RERA, now act in an oversight capacity: monitoring management performance, reviewing budgets, and raising concerns where needed. This creates a more balanced structure, where professional management is supported by informed owner representation without the operational burden.
Another important aspect for investors in jointly owned properties is the clarity around dispute resolution. With the Rental Dispute Settlement Centre (RDSC) holding exclusive jurisdiction over these matters, the process has become more focused and efficient, reducing uncertainty when issues arise.
For investors, these regulatory changes signal a broader evolution in how Dubai manages and safeguards real estate assets. While the transition away from owner-controlled associations may initially seem like a loss of direct influence, the introduction of professional management, clearer governance structures, and stronger regulatory oversight ultimately enhances the long-term value and stability of investments. In a market where the quality of asset management directly impacts returns, this framework positions Dubai more firmly as a transparent, reliable, and investor-friendly environment.
Author,
Hiba Jaber,
Senior Advisor & Trainer
Innovation Experts Real Estate Institute.
