Investing in real estate in Dubai, a global business hub, offers non-residents the opportunity to own freehold property. Yes, foreigners/expats can also fully own properties in Dubai—permanent ownership of both land and property. Dubai’s government has specified freehold zones for non-residents to acquire freehold properties.
However, understanding the differences between freehold and leasehold ownership is crucial. That is because freehold ownership allows for the utilization, leasing, or selling of the property. This knowledge helps investors make informed decisions and grasp the long-term advantages and responsibilities associated with owning freehold property in Dubai.
Here is a detailed guide on freehold property ownership in Dubai.
Freehold Properties in Dubai Explained
Non-UAE residents can own freehold apartments or villas in Dubai, which includes ownership of the land they are built on.
The Dubai Land Department (DLD) registers the buyer as the ‘Landowner’ as per Dubai’s property ownership laws and issues a title deed. This ownership structure gives buyers more control, which allows them to make renovations and structural changes.
Expatriates and foreign nationals can buy freehold properties in designated zones in Dubai. It is important to use government-approved agents and developers for these purchases.
Freehold properties history goes back to the early years of the 21st century when Dubai led the way in offering freehold properties to expatriates.
The 99-year lease on freehold lands started in 2001, followed by the Freehold Decree in 2002, allows foreign nationals aged 21 and above to engage in real estate activities in specific Dubai areas under freehold ownership.
Benefits of Buying Freehold Property in Dubai—Freehold Properties Benefits
Owning property in Dubai offers numerous advantages, but it is crucial to evaluate the pros and cons of freehold property ownership beforehand. Following are the key benefits of owning freehold properties in Dubai.
1. Total Ownership Control
Freehold properties grant owners complete control over both the real estate unit and the land it occupies. This empowerment allows owners to remodel, renovate, or even rebuild the unit within the boundaries of development regulations.
2. Freedom of Utilization
Freehold property owners in Dubai have the liberty to sell, occupy, or lease their property as they see fit.
3. Property Inheritance
A significant difference between leasehold properties and freehold properties in Dubai lies in property inheritance. With freehold properties, ownership can be transferred to family members following the original owner’s passing.
What’s more, freehold properties are not written off when the owner dies like leasehold ones do. The agreement stays, so the property smoothly goes to the rightful heir and stays in the family.
4. Diverse Freehold Property Options
Dubai offers a wide range of freehold property options across different zones. Prospective buyers have a wide array of choices to explore, which allows them to identify properties that align with their preferences.
The city’s freehold areas have a diverse range of property types, catering to various investment and lifestyle needs. It is important to note that there are specified freehold areas in which buyers can own apartments, villas, and apartments and villas.
5. Visa Benefits
Owning a freehold property under your name qualifies you and your family for renewable UAE residence visas. However, you also have to fulfill specific criteria as well.
The introduction of long-term residency visas in the UAE offers freehold property owners the choice of 5- or 10-year visa options.
Furthermore, expatriates looking to invest in property can secure an investor visa in Dubai by opting for a freehold property, facilitating residency in the UAE.
Types of Freehold Properties in Dubai
The freehold zone in Dubai mainly offers two types of properties for foreign buyers or investors.
1. Residential Units
Dubai’s residential freehold properties offer a variety of options. You can choose from cozy studios, spacious multi-bedroom apartments, luxurious villas, and townhouses with exclusive amenities.
2. Commercial Spaces
In Dubai’s freehold zones, you will find diverse commercial spaces that suit different business needs. Community hubs and shopping centers offer retail outlets and restaurants. There are also various office spaces, from small offices to entire floors, catering to startups and multinational corporations alike.
How to Own a Freehold Property in Dubai
Freehold property ownership in Dubai is a multi-step process.
Property Search
Acquiring freehold property in Dubai involves several steps to ensure a smooth transition of ownership. It starts with a thorough property search, where buyers consider factors like location, price, and amenities.
Working with a trusted real estate agent can simplify this process. A registered real estate agent can provide access to a wide range of freehold properties that match the buyer’s preferences.
Transaction Completion
Once you find a suitable property, the transaction process begins. This includes
- Negotiations,
- Drafting a sales agreement, and
- Arranging finances
Buyers may secure funds through a bank mortgage or private finance. Both parties then formalize the transaction by signing a purchase agreement, which legally binds the buyer and seller.
Title Deed Issuance
The final step is obtaining the title deed. After fulfilling all obligations and payments, a title deed is issued in the buyer’s name, confirming their legal ownership.
The Dubai Land Department (DLD) oversees this process to ensure the transfer is recorded and recognized officially.
Legalities for Freehold Property Ownership in Dubai
The legal framework for owning freehold property in Dubai offers clarity and security to local and foreign investors. It outlines ownership conditions and rights.
Property Registration
The Dubai Land Department (DLD) oversees property registration under Law No. 7 of 2006. It issues title deed as proof of ownership. This process ensures transparency and protects ownership rights for smooth transactions. You can find detailed guidelines from the DLD for more information.
Freehold Decree
Dubai’s property law includes the Freehold Decree (Law No. 7 of 2006). It allows foreigners to buy, sell, and own property in specific areas with full rights.
Who is Eligible for Freehold Property Ownership in Dubai?
In 2002, Dubai’s real estate market opened to foreign investors. The freehold property ownership law in Dubai allows foreign nationals to own property in specific freehold areas. There are no nationality-based restrictions, which makes Dubai accessible to global investors who can buy freehold properties.
Frequently Asked Questions
Who is eligible for freehold property ownership in Dubai?
There are no nationality-based restrictions on property ownership in Dubai, making it accessible to investors worldwide who can purchase freehold properties.
What is freehold property in Dubai?
Freehold property ownership in Dubai allows non-UAE residents to own property outright, with full rights to utilize, lease, or sell it. There are specified freehold zones in Dubai.
Can foreigners own land in Dubai?
Foreigners can own land in Dubai through freehold ownership, permitted by the Freehold Decree (Law No. 7 of 2006), which allows non-UAE nationals, including foreign investors, to buy, sell, and own freehold property in specified areas.
Pro tip: Hiring a registered real estate firm or agents can help you access a wide range of options at the best prices.
