Purchasing a Freehold Property in Dubai
If you came across this article, chances are you already know what a freehold property is, however, if this is not the case, freehold property is built in an area that allows the owner to have complete ownership over the home along with the land that the property stands on.
The purpose of this article is to:
Explain what freehold property is
Differentiate between leasehold ownership and freehold property
Explore the process of buying a freehold property in Dubai
Demonstrate the pros and cons of buying a freehold property in Dubai
Guide you towards the demonstrated freehold areas
What is the difference between leasehold ownership and freehold property in Dubai?
While leasehold ownership allows you to get the property rights for a fixed term, the maximum being 99 years, you still won’t own the property’s land. On the other hand, freehold ownership allows you to be the absolute owner of the property and the land it’s built on; hence, it can be sold, leased or occupied at the owner’s will.
What is the process of purchasing freehold property in Dubai?
You might think that purchasing a freehold property in Dubai is a daunting task, but in fact, the process consists of four primary legal steps:
Formulating a contract between the buyer and the seller (There are two options: pay in cash or apply for a mortgage). Compare cash vs mortgage to determine which is right for you.
Signing the Memorandum of Understanding (MOU): signing the sale agreement, the form is available on the Dubai Land Department website
Applying for a no objection certificate: The buyer, seller and real estate agent meet to apply and pay for a No Objection Certificate (NOC) to transfer the ownership
Meeting the seller at the Dubai Land Department office: after all the formalities are completed and a new title deed is issued in your name, you have officially become a property owner in Dubai, meaning that the transfer is now complete.
-(1)-(1).jpg)
Dubai Land Department office
What are the pros of purchasing a freehold property in Dubai?
If the property value is above AED 2 million, owners of freehold properties, as well as their immediate families are eligible for renewable UAE residence visas.
Complete control over the property means that owners are not required to seek permissions from anyone if they decide to make any changes to the property. However, if they want to change the façade of the house, they would still need to get permission from the developer.
In case the owner passes away, their heirs will inherit the property, whether or not there is a will.
It is convenient for foreigners who are not residents of the UAE since they also have the right to buy freehold properties.
What are the cons of purchasing a freehold property in Dubai?
All kinds of repairs, in addition to maintenance, are the responsibility of the owners.
Designated freehold areas in Dubai limit the options that buyers can choose from.
Owners are billed annually for maintenance, so this is an additional expense.
Freehold areas in Dubai
Now, you are probably wondering what the designated freehold areas are. To make your search easier, here is a list of the most popular ones:
Arabian Ranches is a green suburb with a tranquil lifestyle, ideal if you seek peace and quiet.
Business Bay is an aspiring business community and home to many international companies, so it is adequate for entrepreneurs working in business centers.
Downtown Dubai is appropriate for those who prefer a vibrant city life and it is also excellent for short-term rentals.
Damac Hills is suitable for both affordable studios, as well as luxurious mansions.
Dubai Marina is ideal for those who prefer luxury properties with its spacious studios, apartments, penthouses and villas.
Dubai Studio City is a fee zone for media companies, in addition to residential buildings with amazing infrastructure.
Emirates Hills is the ultimate family neighborhood, with parks, playgrounds, swimming pools and family facilities located just around the corner.
Is there a complete list of freehold zones in Dubai?
Taking into account that the number of freehold zones in Dubai is constantly growing, there isn’t a complete list of all the zones. However, here is a more detailed list:
Al Barari
Al Habtoor City
Culture Village
Dubai International Financial Centre
Dubailand
Green Community
Jumeirah Beach Residence
Jumeirah Golf Estates
Jumeirah Islands
Next steps
As you’ve seen in this article, purchasing a freehold property is not as complex as it might seem, but it is still important to know all the terms and conditions and the best way to approach the process.
Our advice is to take all matters into consideration and do your research. If you need any additional information, feel free to contact Kredium and purchase your freehold property today.
Photo credits:
Photo | Freepik
.svg){kind=small}
.svg){kind=small}