More and more people across the globe are looking to invest in a property in Dubai.
Such people should enrich their knowledge of the existing types of property ownership in the city.
If you are a foreigner and looking to acquire a property in the city, you should note that there are two types of home ownership in Dubai—freehold and leasehold.
You can make good purchase decisions when you know about the property ownership options in Dubai.
Look at the property ownership regulation in the city. You will see that Dubai was the first emirate in the UAE to open its designated areas or zones to foreigners and expatriates to own properties.
In 2001, the Dubai government passed a law to grant foreigners the right to own leasehold properties in the city. Subsequently, in 2002, the government passed another law, giving foreigners the right to purchase freehold properties.
Property ownerships differ from each other in some ways, especially in terms of buyer rights.
Here is an assessment of the property types:
A leasehold property ownership allows you the right to own the property for a fixed term, usually 99 years.
You should note that this type of ownership allows you the the right on the property. And, the right does not extend to the land on which the property stands.
Technically, the land ownership stays with the freeholder, who leases the land to construct the property for the specified term.
Once the agreed term ends, the property ownership goes back to the freeholder.
If you invest in a freehold property, you get ownership of the property and the land on which it is built. Moreover, there are no time restrictions for the ownership.
With the ownership, you can be the sole owner and can do anything with the property. You can rent, sell, or occupy the property.
Again, it will not be wrong to say that purchasing a freehold property amounts to owning land.
After you buy a freehold property, the Dubai Land Department will register you as the landowner and give a title deed for the property.
The Common Benefits of the Property Ownership
Regardless of the type of property you purchase, you will reap the following common benefits:
A leasehold property ownership in Dubai will allow you to stay as a leaseholder. And, you need to renew the lease at the end of every term.
Again, there will be a limited liability for repairs and maintenance, which are the responsibilities of the freehold owner.
There can be many benefits to buying a freehold property in Dubai. Property ownership can render the ownership of the property as well as the land.
There will be no need to seek permission from any authority to repair the property. Moreover, you can nominate an heir to pass on the property after your death.
There are more benefits of freehold property ownership. For example, the ownership will make your family eligible for renewable UAE residence visas. However, certain conditions need to be fulfilled.
With ample freehold properties for sale in Dubai, you can quickly find a property to buy in the city. You can choose such a property depending on your budget, tastes, and requirements.
Again, it can also be wise to invest in freehold property in Dubai to sell it out later. That way, you can get a return on investment of up to 9 per cent.
Akin to the specific rules and regulations in different regions, Dubai has two types of property ownership. If you are thinking of buying a property in the city, you should make yourself aware of the nitty-gritty details of property ownership in the city. It will help make good purchase decisions. Finally, you should take into account your financial health before the purchase.