As property prices in Dubai keep going up, timeshares could be a good and affordable way to own a fancy holiday home. Here's all you need to know about getting a timeshare.

Dubai's timeshare market has been growing steadily since new rules came in 2021, and experts think it will keep growing in 2024 after a year where luxury real estate did really well, with property prices going higher than ever before.

Simon Pitkin, who runs dV Property International, says, "As property values keep going up, timeshares might become a more attractive option for those wanting a piece of ownership and a winter vacation in Dubai."

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"The simple truth is that property prices have gone way up in the last 2.5 years, making full ownership too expensive for many."

With a timeshare, people can share ownership of a place like a hotel room or villa and use it for a set time each year. In Dubai, where property prices are high, timeshares offer a way for people to own part of a luxurious property without breaking the bank.

"Timeshares let people enjoy a certain area or city for a few weeks each year – it's like having your own holiday home. With property prices going up, this way of owning a bit of a property is especially good for those who can't afford a whole holiday home," says Simon, who has noticed more interest in Dubai timeshares as property prices go up.

"The best properties are usually near the sea or beach in lively parts of the city like Dubai Marina and Palm Jumeirah. They're close to restaurants and nightlife but not right on top of it unless you really like the lively vibe of the FIVE Palm."

"Timeshares are great for bigger places like villas or large apartments where families can share holidays and have their own private spaces," says Sam Parsons, an advisor at dVPI.

Although this type of investment didn't catch on at first because it limited investors to hotel properties and needed a separate license, Sam adds that investors can already buy private properties as a group, letting them rent out the properties short term and use them whenever they want.

For anyone thinking about getting a timeshare in Dubai, it's important to know both the good parts and the responsibilities.

How to get a timeshare in Dubai

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However, it's important to understand both the good parts and responsibilities that come with getting a timeshare.

Started in 2021, Dubai Tourism’s Timeshare Portal makes it easier to register contracts and helps with reselling or transferring ownership rights. To be official, all new timeshare purchases must be registered on the portal by the developer.

People looking to buy can use the portal to find available timeshares on the resale market. If someone who already owns a timeshare wants to sell it, they can start the transfer of rights through the portal, making sure the process is clear and legal.

"While not many people talk about it, the platform is still a great find," says Simon.

Important rules for timeshares

Only properties that are four or five-star hotels or luxury apartments can be used as timeshares. Ownership can be bought either through a timeshare contract or a points-based contract, explains Derek Robins from Dubai law firm BSA.

"The main thing here is to do your homework. Make sure the timeshare you want to buy is registered with RERA [the Real Estate Regulatory Agency]. Also, check that the developer is registered with the DET and is allowed to do this. Investigate before making any big commitments," advises Sam.

Here’s a list of key obligations that buyers (termed “beneficiaries”) must follow, according to BSA:

• Comply with contractual obligations
• Pay for using the unit
• Maintain good condition throughout usage
• No improvements or structures
• Use the Unit for its intended purpose
• Return the Unit in the same condition found after a stay
• Do not damage the Unit or impair its value
• Comply with all applicable laws
• Ensure that the unit being utilized has been registered with the DET
• Notify the DET of any changes to the contract

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Developers have strict rules to follow to ensure transparency and record-keeping. They must keep detailed records of all timeshare contracts and points-based agreements, accessible to the DET for a set period. Additionally, developers must share accurate unit information, respond promptly to DET complaints, and cooperate fully with regulatory authorities. This includes allowing employee inspections of all contracts and records.

Unauthorized brokering roles are not allowed for developers. Instead, they need to appoint experienced managers and comply with security, public health, environmental, and contractual obligations.

Other responsibilities include regular maintenance, comprehensive insurance coverage, proper registration of agreements, and transparently outlining financial considerations to beneficiaries. Developers cannot impose extra charges not mentioned in contracts and must provide electricity, water, and internet access without additional charges. Defect warranties must also be honored. Thorough activity records, respect for beneficiary data privacy, submission of periodic DET reports, investigation of complaints, and documentation of the complaint handling process are crucial duties for timeshare operators.

For buyer protection, a 10-day cooling-off period is provided, and buyers can carry over usage dates up to two years. Legal remedies, such as termination, are available if developers disturb usage or fail registration duties. Rigorous licensing conditions set baseline quality, financial security, and customer service standards for developers, assuring beneficiaries that their units will be well-managed.

If developers disrupt a beneficiary’s enjoyment or fail in registration responsibilities, legal recourse options, like contract termination, are available. Beneficiaries can also request a 45-day carryover of their usage interval up to two years in advance if travel plans are disrupted. This ensures the timeshare meets owners’ needs in the long run.

Rights can be unilaterally terminated within the first year under specific circumstances, such as the lack of a required operating permit, with appropriate compensation. Any party can submit a formal grievance through legal channels to dispute decisions, protecting the rights of all stakeholders in the vacation ownership sector.

Prospective owners can verify developers through RERA registration and the DET’s publicly available register of authorized operators.

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