Legal and Compliance

Strata

A system of property ownership for multi-unit buildings where owners share common areas.

Strata title is a form of property ownership applied to multi-unit buildings and developments. Each owner holds title to their individual unit and a proportionate share of the common property. Strata developments are governed by an Owners Corporation or similar body that manages shared facilities and collects service charges. In the UAE, strata law (RERA Law No. 27 of 2007) regulates community management in Dubai.

Frequently asked questions

What rights do property owners have in a strata development?
Strata owners have the right to attend and vote at Owners Association (OA) annual general meetings, review the building's audited financial accounts, challenge service charge budgets, and participate in decisions about common area management. In Dubai, owners can escalate disputes with the OA to RERA's dispute resolution committee. Understanding your OA's governance quality is important before purchasing in a strata development, as poor management directly impacts property values and service charge levels.
How do you calculate your share of strata costs?
Each owner's share of strata costs is proportional to their unit entitlement, which is usually based on the floor area of their unit as a percentage of total building floor area. If your unit is 1,000 sq ft in a building with 50,000 sq ft total, your entitlement is 2%, meaning you pay 2% of the total Owners Association budget. This entitlement is registered on your title deed and cannot be changed without a unanimous vote of all owners.
What is the difference between strata title and freehold?
Strata title is a form of freehold ownership applied specifically to multi-unit buildings. You own your individual unit outright (freehold) plus an undivided share of common areas. The distinction people usually intend when they say "freehold vs strata" is between owning a single-title property (like a standalone villa) versus owning a unit within a shared building. In the UAE, both are freehold ownership structures; the strata designation simply describes the shared management layer.
Can strata service charges increase without owner approval?
In Dubai, the Owners Association must prepare an annual budget and have it approved by RERA before collecting service charges. Significant increases require owner consultation and RERA review. However, OA boards have discretion within approved budgets, and emergency levies can be applied for urgent repairs. If you suspect your service charges are excessive, RERA publishes approved service charge rates for every registered community in Dubai, which you can use as a benchmark.

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