Cabinet extends correction deadline for undocumented real estate deals

The deadline for correcting and documenting unregistered real estate transactions has been extended, according to the official gazette. The decision was approved by the Cabinet last Tuesday.

What’s covered? The decision doesn’t cover recent contracts, as it applies only to undocumented real estate transactions carried out before October 2020, including sales, gifts, ownership transfers, and transfers of undivided shares, provided the property already has an official title deed, Mohammed Al Hesamee, a licensed real estate broker, tells EnterpriseAM.

The impact: Al Hesamee argues the decision will accelerate the shift toward electronic title deeds, helping resolve disputes and ensure ownership stability. “It could also bring previously off-record transactions into the formal market, improving the accuracy of property prices and transaction data,” he adds.

ALSO- The official gazette published the unified rules for owners of jointly owned properties across the GCC, following the cabinet approval in July. It defines those properties as comprising individually owned units and shared areas, while requiring each owners’ association to have bylaws governing the use and management of common areas. The bylaws must be approved by the relevant authority in each GCC country before taking effect.

Part of a wider push: The same meeting saw the approval of an amendment allowing private developers to build houses on government land in exchange for ownership of part of the land. “This decision doesn’t introduce a new partnership model with the private sector, as they were already permitted under previous regulations. Rather, it develops a mechanism underpinning that partnership and redesigning its economic incentives,” strategic advisor Anmar Al Sulimani tells EnterpriseAM.

Three-pronged impact: Al Sulimani expects this approach to address three challenges — developing a project financing model instead of relying on direct government spending, enhancing the economic viability of real estate developers, and accelerating the development of land allocated for housing. “Land ownership doesn’t deliver the targeted development value unless it is converted into operational projects. The faster the development cycle, the greater the impact on housing supply, land-use efficiency and the utilization of government assets,” he says. Real estate consultant Fatima Al Ghamdi cautions us that this amendment is expected to increase housing supply, improving the efficiency of real estate asset utilization.