Benefits Of Buying Freehold Property In Dubai
The market for real estate in Dubai ,United Arab Emirates has been increasing steadily over the last few years.
The country is growing in popularity and attracting foreigners and investors from across the globe.
A home purchase in Dubai could be a significant investment or even the beginning of a new beginning. But first, you should know how legislation in the UAE operates. There are a variety of options for owning real property in the country.
The most prevalent being leasehold and freehold. This article explains the significant distinctions as well as which is the accurate opportunity for expats.
Freehold vs. Leasehold Dubai
Dubai is regarded as the most friendly Emirate for expats in the UAE. In 2001, the government provided leasehold rights to expats, and in 2002, freehold rights were granted to expats.
In reality, there are many other forms of ownership, too.
But these two are the most prevalent. They differ not just in terms of legality but also territoriality.
It is split into leasehold and freehold zones, and real estate within each one can only be bought on a particular basis.
Freehold
Freehold gives the holder complete possession of their property. The owner is the sole owner of the unit acquired. The property can be gifted, sold, let, or even passed on through inheritance. Foreigners can purchase freehold property from any country.
There are more than 50 freehold zones in Dubai.
List of Freehold areas within Dubai:
- Al Furjan
- Arabian Ranches
- Arjan
- Business Bay
- Bluewaters
- DAMAC Hills
- Downtown Dubai
- Jumeirah
- Jumeirah Beach Residence (JBR)
- Jumeirah Village Circle
- Jumeirah Village Triangle
- Jumeirah Golf Estates
- Jumeirah Lake Towers (JLT)
- Jumeirah Park
- Discovery Gardens
- Dubai Creek Harbour
- Dubai Marina
- Dubai Production City
- Dubai South
- Dubai Sports City
- Dubai Studio City
- Dubai Silicon Oasis
- International City
- Mirdif Hills
- Motor City
- Palm Jumeirah
- Emirates Hills
- Al Barari
- Al Warsan
- Barsha Heights
- Culture Village
- Dubai Festival City
- Dubai Hills Estate
- Dubai International Financial Centre (DIFC)
- Dubai Investment Park (DIP)
- Dubai Residence Complex
- Dubai Science Park
- Dubai Waterfront
- Jumeirah Heights
- Jumeirah Islands
- Liwan
- Mohammed Bin Rashid City
- The Meadows
- Meydan City
- Mudon
- Park Gate Residences
- Reem
- Remraam
- The Greens
- The Views
- The Villa
- Tilal Al Ghaf
- Town Square
While Dubai has the highest number of freehold areas, other Emirates are slowly catching up. In 2019, Abu Dhabi granted foreigners freehold rights in certain zones (Yas Island, Al Raha Beach, Al Reem Island, Saadiyat Island, Masdar City, etc. ).
Leasehold
A leasehold is similar to a long-term lease. Leasehold property is the contract for leasing the unit to the developers over a term of 99 or fewer years.
Leasehold areas within Dubai :
- Umm Suqeim
- Jumeirah
- Al Barsha
- Mirdif
- Al Warqa
- Warsan 2
- Umm Hurair
- Umm Al Sheif
- Trade Centres 1 and 2
- The Galleria
- Al Satwa
- Rigga Al Buteen
- Ras Al Khor (Samari Project)
- Port Saeed
- Oud Metha
- Oud Al Muteena
- Naif
- Nad Shamma
- Nad Al Sheba
- Nad Al Hamar
- Madinat Dubai Al Melayah
- Hor Al Anz
- Emirates Golf Club
- Dubai Creek Club
- Dar Al Wasl
- Ayal Nasir
- Al Wasl
- Al Waheda
- Al Twar and more.
Freehold Pros
- Full ownership. The proprietor of the freehold property enjoys total control over the property. They can fix and modify it or let or sell the property. Furthermore, it may be passed on to the family if the owner dies.
- Visas. Freehold homeowners are eligible for residency visas to Dubai. If you purchase a flat or an apartment at AED 750,000 (USD 204,200) and meet the requirements, you can apply for a residence permit for at least two years. Furthermore, expats seeking to purchase a property to invest in can buy a freehold property and get an investor's visa to Dubai.
- There are more zones. The options for freehold properties in Dubai are much more diverse. The number of areas offering this kind of property is increasing. There are over 50 zones, and the number continues to grow yearly while leasehold areas are slowly disappearing (currently comprise about five percent of all city zones).
Leasehold Pros
- Lower prices. Leasehold properties are not purchased. Instead, they are leased for a more extended period. This means they are considerably less expensive.
- Maintenance. If it is a leasehold property, the owner is only responsible for a limited responsibility for the property's condition; for instance, they have to repair the property in the event of damages. The owner undertakes other maintenance for the property.
- The contract is renewed. The expiration of the lease term doesn't mean the tenant is automatically required to go out. After the 99th year, they are entitled to the option to renew the lease and continue to reside in the house.
In a Nutshell
Although Dubai is a great place to live for expats and foreign investors, there are many choices for buying real estate; however, freehold property can be perfect.
Regarding investment, a freehold is the most appropriate feature because only wholly-owned properties can be let out or sold. Furthermore, owners of freehold property can obtain a long-term visa.
