Dubai is one of the most popular choices of property investment, especially after its real estate market being open to foreign investors. With world-class infrastructure, availability of luxuries and comforts, and a secure environment, it offers promising investment opportunities and returns for all across the globe.
Only after 2002, the government of Dubai allowed foreign nationals to purchase freehold properties in Dubai that offer complete ownership. Otherwise, earlier expats could only buy leasehold properties that offered them ownership with several restrictions and for 99 years only.
Now, thousands of foreign nationals are interested in buying a property in Dubai and therefore, the real estate market is witnessing a boom! People invest in apartments, villas, and townhouses in several areas in Dubai every year.
If you are planning to make an investment in freehold properties in Dubai, you’ve come to the right place. In this article, we’re going to tell you all about the freehold properties in Dubai. So, let’s cut the chase and read further to know.
What is Freehold Property in Dubai?
Freehold properties give complete ownership to the buyers over the building and the land. There are no time restrictions on these properties, unlike the leasehold properties in Dubai. As per the property laws in the city, the Dubai Land Department registers the freehold property buyer’s name as the “owner” in the registry and then gives them a title deed for it.
The heir of the family inherits these properties when the owner passes away. So, these are going to stay within the family itself.
Expats or foreign nationals can purchase properties on a freehold basis in the designated areas in Dubai. There is a wide range of these properties in Dubai that are developed keeping in mind different tastes, needs, and budget constraints of the prospective buyers.
One thing to note is to buy these properties from government approved professionals or real estate agents to ensure the security of your investment.
Advantages of Buying Freehold Property in Dubai
- Freehold properties provide the owner complete control over the property and the land. Hence, the owners of these properties can make any changes or renovate the property according to their needs. They can do anything while following the guidelines fixed by the developer.
- These properties are automatically inherited by the heir of a family when the owner passes away. So, the property stays in the family only. Outsiders cannot have a claim over them.
- The owner has a right to sell, put on lease, or occupy the freehold property as he pleases.
- The owners can enjoy the benefit of high Return on Investment with some apartments and villas yielding returns up to 9%.
- The owner along with his/her family will be eligible for renewing the UAE residency visas, if they meet the prescribed conditions. After the introduction of long-term residency visas in the UAE, the owners can now apply for five or ten-year visas.
Disadvantages of Buying Freehold Property in Dubai
- Freehold property owners have to take the responsibility of the maintenance of the property. Hence, if the owner has given the apartment on rent, he/she has to take care of the repairs and maintenance, and not the tenant.
What are the Best Freehold Areas in Dubai?
Foreign investors who are willing to invest in a freehold property have a lot of options to make a choice. There are designated freehold areas in Dubai that have a range of projects, such as apartments, villas, and townhouse communities.
The freehold property ownership is becoming a popular choice for the expats. Therefore, it is available in some of the peak locations in Dubai, such as Dubai Marina, Dubai Waterfront, Dubailand, Dubai Harbour, Downtown Dubai, and The Springs.
Some of the non-designated areas are also witnessing the development of freehold property projects like Palm Jumeirah and Barsha Heights giving out more choice to the prospective buyers.
Why should you Buy Freehold property?
When considering investing in freehold properties, the major factor that can’t be neglected is the amount of control.
Freehold property owners have more control over their building and land, so they can make the changes as per their preferences.
You can also use this property for the long term and it will stay within your family only, unless you decide to sell out. However, you can always do more research on property investment and do an analysis of your requirements to make the right decision!
Find the Right Freehold Property in Dubai
The decision of buying a property in Dubai is a hard task. It involves a lot of your funds and so you need to invest wisely. At Allegiance, we can help you make a sound property investment decision. We have a team of real estate agents who have sound knowledge about the property market in Dubai.
We have helped several investors in buying residential and commercial properties that can offer high ROI or rental yields. You can contact us to explore our range of properties or know how we can assist you with your property buying decision. We’re dedicated to helping you through every stage of your real estate journey.
We also hope this article helps you in investing your money in a freehold property in Dubai. If you are thinking of buying this type of property with Bitcoin, check out our blog- How to buy property in Dubai with Bitcoin.
Stay tuned for more blogs on the Dubai property market!
Frequently Asked Questions
Q1. What do you mean by free hold in the real estate industry?
Freehold in real estate means that you own both- the building structure and the land. It contains no space co-owned or managed with the owners of nearby homes. You have complete responsibility over the maintenance of the property and paying the property taxes that are fixed by the city’s government.
Q2. Is it safe to buy property in Dubai?
Dubai is one of the safest cities in the world with very few crime cases reported every year. It is completely safe to buy a property in Dubai. However, you need to beware of cons who might fool you to dupe money in the name of providing support.
Q3. Is it worth buying a house on freehold?
If you are planning to buy a house on freehold, then it is worth it to invest in it. There’s no reason why you should pay more money for the land on which you own a house. On the other hand, if you own a flat, you can’t purchase a freehold solely. You need to make everyone who owns the flat agree to buy a share in its freehold.
Q4. Does buying a freehold increase the value of the property?
Yes! When you are a freeholder, you have complete control over your property, like its maintenance, renovation, etc. So, you can manage it better which in turn increases the value of the property.