Purchasing Freehold Property in Dubai

Dubai is a popular tourist destination, home to iconic shopping malls and leisure attractions. The luxury lifestyle the emirate offers makes it one of the world’s most sought-after places for foreign investors. In 2002, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, issued a decree allowing foreign nationals to buy and own freehold property in Dubai.

New luxury real estate projects are continually being launched in Dubai, offering diverse high-end living options to meet the growing demand for opulent and innovative residential experiences. In this article, we outline freehold property, the designated areas where you can buy it, and the benefits of owning freehold property in Dubai.

What is Freehold Property?

In Dubai, freehold property refers to real estate that non-UAE nationals can purchase outright, granting them full ownership of the property and the land it stands on. Owners of freehold properties in Dubai have the right to sell, lease, or use the property at their discretion.

In contrast, leasehold property means the owner has the right to use the property and land for a specified period, typically between 30 and 99 years, after which ownership reverts to the landlord unless the lease is extended. Leasehold ownership usually involves paying ground rent to the landlord and may come with certain restrictions and obligations regarding property modifications and usage.

Where Can Foreign Nationals Purchase Freehold Property?

Foreign investors and expats can purchase properties in designated freehold areas. These freehold areas in Dubai consist of over 47 neighbourhoods. Popular freehold established communities include Palm Jumeirah, Downtown Dubai, Business Bay, Dubai Marina, Jumeirah Lake Towers (JLT), and Arabian Ranches.

Benefits of Buying Freehold Property In Dubai:

With 0% income tax, 0% capital gains, residence visa options, and high capital appreciation and rental yields, it’s easy to see why investing in property in Dubai is so popular.

If you are considering purchasing a freehold property in Dubai, here are the things you must know:

• When you purchase a freehold property, you have permanent rights over the property unit and the land.
• You can sell or lease your freehold property at your discretion, making it the perfect investment opportunity.
• Dubai offers a highly regulated property sales process, providing investors with plenty of benefits. Off-plan buyers can complete all formalities without ever leaving their home country!
• You can pay in instalments for off plan property (with down payments as low as 5%), and benefit from post-handover payment plans where you get the keys after paying for example 60% of the property value and get 2 years to settle the remaining 40%.
• Non-residents can obtain mortgages with many UAE banks lending for both off-plan properties and ready properties.
• International companies can purchase property in Dubai through a UAE approved off-shore company holding structure with minimal running costs.
• Owners of freehold property and their immediate families are eligible for investor UAE visas with 2, 5 and 10 years, and even permanent residency option.

Taking The Next Step And Finding Your Perfect Freehold Property:

If you want to find out more about purchasing property in Dubai, contact us today to discuss your options.

Whether you’re seeking a home for your family or looking to broaden your property investment portfolio, we are dedicated to helping you through every step of your real estate journey.