Leasing A Strata Unit In Dubai: Additional Considerations For Landlords

Over the last few years, a significant number of commercial and office towers have been constructed in Dubai. The majority of those buildings have been strata-titled to allow for separate ownership of units within the buildings pursuant to Law No. 27 of 2007 Concerning Ownership of Jointly Owned Properties in the Emirate of Dubai (the "JOP Law"). This has enabled many investors to own high-quality commercial property that is attractive to tenants.

However, ownership of a strata unit places additional obligations on an owner, which may create additional risks for the owner when leasing its unit. The owner should therefore be familiar with the requirements of the JOP Law and the Directions published pursuant to the JOP Law on 13 April 2010 (the "Directions"), and it should take these requirements into consideration when preparing its leasing documentation and when dealing with its tenant and the relevant Owners' Association. This article sets out some of the matters