How does the supply of real estate work in the Designated Zones?

As a general rule, the place of supply for real estate is the location of the real estate. As per this rule, the supply of real estate within a Designated Zone will be considered as a supply made outside the UAE. Therefore, VAT not be applicable on such supplies. 

Any real estate that is not supplied through selling, leasing, or renting is considered to be real estate service. All real estate services—including but not limited to granting personal rights to use real estate, licensing for occupation of real estate, and the provision of contractual rights that can be exercised on real estate, including the right to use hotel accommodations or similar establishments—are taxable in the Designated Zones.