UAE Depreciation Rules Boost Real Estate Investment

Shabbir Moonim on why depreciation reforms are changing the real estate investment outlook | Integrator Media

Recent amendments to the UAE’s depreciation rules have enhanced the appeal of real estate investment by allowing fair-value properties to generate deductible depreciation for corporate tax purposes. Previously, properties recorded at fair value could not claim depreciation deductions, creating a disconnect between accounting treatment and tax outcomes. The updated guidance enables companies to apply capped depreciation, improving cash flow and aligning tax liabilities with economic reality. This shift is expected to support more transparent reporting, encourage long-term investment planning, and attract both local and international investors seeking greater predictability within the UAE’s corporate tax framework.