Purchasing Freehold Property in Dubai
Dubai has always been a popular tourist destination, but more than that- in recent years, it has become one of the world’s most sought after places for foreign investors. In 2002 His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President & Prime Minister of the UAE and Ruler of Dubai issued a decree, allowing foreign nationals to buy and own freehold property in designated areas in Dubai.
Before this, the Dubai government only allowed expats to have a 99-year lease of particular Dubai property. This new law understandably led to a real estate boom!
Since then, thousands of non-residents from across the globe buy townhouses, apartments and villas in the UAE every year.
In this article, we outline what freehold property is, the designated areas that you can buy in, and the benefits of owning freehold property in Dubai…
What Exactly Is ‘Freehold Property’?
When you purchase freehold property, you (the buyer) will have complete ownership of both the unit that you are buying as well as the land that it is built on.
Freehold property in UAE can be sold, leased or occupied at the will of the owner, and when the owner passes away, their heir can inherit it, ensuring that the property stays in the same family.
The above differs from buying a leasehold property, where a potential buyer would buy the right to live in or occupy a property from a freeholder for 99 years (or less). This form of property ownership only grants the buyer rights to the unit and not the land it is built on. But when it comes to owning freehold properties, the owner has a lot more control.
Where Can Foreign Nationals Purchase Freehold Property?
Foreign nationals and expats are allowed to 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, 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 your own freehold property in Dubai, here are some more reasons to convince you:
- When you purchase a freehold property, you have permanent rights over the property unit and the land.
- Since you own the property outright, it will stay in your family (or be inherited by an heir) after you pass away.
- 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 with many protections for investors and simple, stress free property transfer procedures. Off-plan buyers can even complete all formalities without ever leaving their home country!
- You can pay in instalments for off plan property (with down payments as lows 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 renewable UAE residence 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.
If you’d like to know more about purchasing a freehold property in Dubai, feel free to contact us and our experts will be more than happy to advise you.