Dubai: Last week's announcement naming areas in which expatriates can own freehold properties has helped ease confusion and tension in Dubai's vibrant real estate sector.

It was a major update on a process which began in March when Dubai's rulers issued a law which legalised freehold ownership of land and property to UAE and GCC nationals.

The law also allowed the same rights to non-GCC expatriates in areas designated by the government.

But for several months these areas remained unconfirmed, leading to growing uncertainty among buyers over their legal rights and holding back corporate investors from entering the market.

"Every week and month that the law remained unclear it had an effect on the credibility of the market," said Mohammad Nimer, general manager of the property development department at MAG Group.

The announcement last week is expected to create a sense of security among buyers of property in developments built by Nakheel, Emaar and Dubai Holding, which include residential zones such as Arabian Ranches, The Greens, The Springs, Jumeirah Beach Residence, Dubai Sports City and Jumeirah Village.

Dubai Land Department will now begin registering thousands of individual title deeds in owners' names, a process which is done through a master developer at this stage.

However, some confusion still remains over whether an area is designated as leasehold or freehold.

According to the Land Department, a zone designated as freehold by the Government can still be partly made 99-year or 50-year leasehold by the project developer.

On the issue of whether UAE resident visas are guaranteed upon purchase of a freehold property, Peter Riddoch, CEO of real estate developers Damac, said developers will only support visa applications, in effect acting as sponsors.

Other property sector developments on the cards include a government-backed system where investors' deposits are delivered to an independent financial body and only handed to a developer when contractual conditions have been met.

And the Land Department is also working on the Condominium Law, which will clarify the relationship between investors and developers in freehold apartment buildings.