Investing in Dubai’s real estate offers a number of financial benefits, especially with freehold properties. However, before investing, it is important to understand local demographics, regulations, and the economy.
Freehold properties in Dubai are especially attractive to non-resident foreigners and expatriates. That’s because freehold properties offer full ownership and high returns. Over the past two decades, Dubai’s real estate market has grown significantly, with many foreign investors having invested heavily in Dubai due to its modern infrastructure and tax-friendly environment.
Freehold ownership, which allows complete control over the property, is a key factor in attracting investors. Our guide covers what freehold properties in Dubai mean, how they differ from leasehold, the benefits of buying freehold properties in Dubai, and the top freehold areas to invest in Dubai.
What are Freehold Properties in Dubai? Dubai Freehold Properties Defined
A freehold area in Dubai is a place where the owner has complete and permanent ownership of both the land and any buildings on it. In Dubai, freehold areas allow foreigners and investors from outside the UAE to own property without needing a local sponsor. This means people from anywhere in the world can buy, sell, or rent property in these areas without any restrictions on ownership.
Dubai’s freehold property laws are based on the Freehold Decree, officially known as Law No. 7 of 2006. This law has played a big role in bringing foreign investment into Dubai’s real estate market.
Freehold areas in Dubai were introduced to attract international investors and enhance the real estate sector. Property owners in these areas can use their property for homes, businesses, or investment purposes as long as they follow local regulations and zoning laws.
Investing in freehold properties in Dubai can be profitable as it provides chances for property value growth and rental income. Additionally, owning property in a freehold area might come with residency benefits, like long-term visas. (Read our article on how to get permanent residency in Ras-Al-Khaimah, a suburb of Dubai)
Anyone looking to buy property in Dubai’s freehold areas should understand the local laws and procedures. Consulting with legal and real estate experts can help ensure the buying process goes smoothly and meets all legal requirements.
Types of Freehold Properties in Dubai
Under the rules for freehold property ownership, foreigners can buy both commercial and residential properties in certain freehold areas.
Commercial Properties
Dubai freehold areas offer a large number of commercial properties, such as retail spaces and warehouses, in these freehold zones. Depending on what your business needs, you can find options in shopping centers and business districts to set up and run your company.
Residential Properties
For residential properties, you can find a range of options, including apartments, villas, and townhouses with different numbers of bedrooms and designs. In these areas, you will find both affordable and high-end homes. This variety ensures that there are choices available to match different tastes and budgets.
Difference Between Leasehold and Freehold Properties in Dubai
Freehold properties are often confused with leasehold properties in Dubai. However, there is a difference between freehold, leasehold, and non-leasehold properties in Dubai.
Dubai Leasehold Property
A leasehold property can be rented from the owner for up to 99 years or less. When you buy a leasehold property in Dubai, you get the right to use the home for a long time, but you do not own the land on which the property is built.
After the lease ends, the property rights return to the original owner, but you can renew the lease if the owner agrees. You can sell, use, or rent a leasehold property similarly to a freehold one, with nearly the same benefits.
Dubai Freehold Property
When it comes to freehold properties in Dubai, the owner owns both the land and the building indefinitely, and this ownership can be passed down through generations. Freehold property owners have full control and can make changes, rent out, or sell their property with few restrictions.
On the other hand, leasehold property owners have more limited rights. They might face restrictions on making changes or renting out the property, and they typically have to pay ground rent and maintenance fees to the freeholder.
Freehold properties usually have higher resale values and are often seen as better investments due to their permanent ownership.
Benefits of Buying Freehold Properties in Dubai
Buying a freehold property in Dubai is beneficial in various ways.
1. Stable Long-Term Investment
Owning a freehold property in Dubai offers long-term investment benefits. As Dubai’s real estate market grows consistently, freehold properties can increase significantly in value, thus providing strong returns on investment.
The city’s expanding market and supportive regulations make it a good place for property investment, with the potential for both property value growth and rental income.
2. Flexibility and Control
Owners of freehold properties in Dubai have the freedom to use their property as they desire. They can
- Rent it out for income,
- Use it as a vacation home, or
- Sell it for a profit.
This control allows owners to take advantage of various opportunities and potentially increase their investment returns.
3. No Renewal Fees
Unlike leasehold properties, freehold properties do not require renewal fees or lease extensions. Once you own a freehold property, you won’t face extra costs for renewing a lease. This can save you money over time and make freehold properties a more attractive investment.
4. Transferable Ownership
You can pass on or transfer ownership of a freehold property to family members or others. Additionally, you can use a will to decide how your property is distributed among heirs or other parties, which makes it easier to manage property inheritance.
5. Tax-Free Investment
Investing in freehold properties in Dubai comes with significant tax benefits. There are no property taxes, which means you can save money on your investment and have more funds available for further investments.
6. Residency Benefits
Buying freehold property in Dubai can also provide residency benefits. The UAE government offers residency visas to property investors, allowing them to live, study, and work in the country. This makes freehold properties appealing to international investors looking to establish a presence in Dubai.
7. Variety of Property Options
Dubai offers a wide range of freehold properties, from luxurious villas and waterfront apartments to more affordable townhouses and commercial spaces. This variety means there are options to fit different preferences and budgets. Such diversity in options make it easy for foreign investors to buy property in Dubai.
8. Citizenship Opportunities
In addition to residency, investing in freehold properties in Dubai might also open doors to UAE citizenship. The government has programs that allow investors to obtain Emirati citizenship if they meet certain criteria.
9. Stable Legal System
Dubai has a reliable legal system and clear regulations, which gives investors confidence and protection. Property laws in the UAE safeguard owners’ rights and ensure fair transactions, which makes freehold properties in Dubai a secure investment option.
Drawbacks of Freehold Properties in Dubai
Where buying freehold properties in Dubai has its perks, there are some drawbacks as well.
1. Higher Initial Cost
Freehold properties in popular locations usually have a higher purchase price compared to leasehold properties, which might make them less affordable for some buyers.
2. Maintenance Costs
As the owner of a freehold property, you are responsible for all maintenance and repair costs. These expenses can add up, especially if you own a large-sized property like a 3-bedroom apartment or villa.
3. Limited Availability
Freehold properties are not available in every area of Dubai. In sought-after locations, there might be fewer options, so you might need to compromise on the location if you choose to buy a freehold property.
4. Limited Financing Options
Getting a loan for a freehold property can be harder. Lenders might ask for a larger down payment and have stricter requirements compared to leasehold properties.
5. Landlord Responsibilities
In freehold developments, you may need to take care of managing shared areas, services, and facilities. This can sometimes lead to extra costs or conflicts with other residents.
Freehold Areas in Dubai Full List
Dubai freehold areas are further divided into three categories based on:
- Freehold areas for apartments
- Freehold areas for villas
- Freehold areas for villas and apartments
Image source: Bayut.com
a. Dubai Freehold Property Areas for Apartments
It is important to note that some areas may have properties that are only available for lease or reserved for GCC investors and Emirati citizens.
Arjan
Arjan is a newer area in Dubai with a mix of low to mid-rise apartment buildings. It is located where Al Qudra Road and Sheikh Mohammed Bin Zayed Road meet. Arjan offers apartments ranging from studios to three-bedroom units.
Bluewaters Island
Bluewaters Island is one of Dubai’s modern developments, home to the world’s largest Ferris wheel, Ain Dubai. This area features stylish apartments from one to four bedrooms.
Barsha Heights
Previously known as TECOM, Barsha Heights is a lively area along Sheikh Zayed Road. It’s known for its mix of residential and commercial spaces, including freehold properties.
Culture Village
Culture Village is a developing waterfront area known for its luxury residences, five-star hotels, and cultural centers. It features modern apartments ranging from studios to three-bedroom units.
Business Bay
Business Bay is a vibrant area next to Downtown Dubai and is highly popular with investors. It offers high-rise buildings with a variety of apartment sizes, including studios, one, two, and three-bedroom units.
Downtown Dubai
Downtown Dubai is a highly sought-after area, famous for the Burj Khalifa and Dubai Mall. It offers a wide range of luxury apartments.
Discovery Gardens
Discovery Gardens is a budget-friendly option near Ibn Battuta Mall, with lush green surroundings and spacious apartments that inlcude studios and one and two-bedroom units.
Dubai Harbour
Dubai Harbour is a waterfront development with the region’s largest marina, luxury hotels, and stylish apartments. It is situated between Dubai Marina and Palm Jumeirah.
Dubai Creek Harbour
Dubai Creek Harbour is a new mixed-use area on the banks of Dubai Creek. It features sleek high-rises, hotels, and entertainment spots.
DIFC (Dubai International Financial Centre)
DIFC is a high-end area housing the Middle East’s major financial hub, known for its trendy art galleries and dining options. It offers a range of residential apartments and penthouses.
Dubai Marina
Dubai Marina is a popular waterfront area with a range of apartment options, from studios to larger units, and offers a vibrant community atmosphere with numerous amenities.
Dubai Investment Park (DIP)
Dubai Investment Park is a large area offering both commercial and residential properties. It includes a variety of apartment sizes and is known for its affordability.
Dubai Production City (IMPZ)
Dubai Production City is a mixed-use area that features residential towers and complexes and is located near Dubai Sports City. It offers various apartment sizes.
Dubai Science Park
Dubai Science Park is a growing community along Umm Suqeim Road. It provides affordable apartment options and access to major roadways.
Dubai Residence Complex
Dubai Residence Complex is a developing area located at the junction of Dubai-Al Ain Road and Emirates Road. It offers modern apartments and future amenities.
Emaar Beachfront
Emaar Beachfront is a gated community in Dubai Harbour; it offers a range of high-end apartments and expansive residential areas.
Dubai Studio City
Dubai Studio City, known for its focus on broadcasting and production, also offers residential apartments in a range of sizes.
Jumeirah Heights
Jumeirah Heights is a self-contained community with apartments overlooking lush surroundings and waterfront views.
Jumeirah Beach Residence (JBR)
Jumeirah Beach Residence is a lively area with stylish, spacious apartments in high-rise towers. It offers various sizes, from studios to four-bedroom units.
Jumeirah Lake Towers (JLT)
Jumeirah Lake Towers is a popular area for affordable apartments with essential amenities and a vibrant community.
Madinat Jumeirah Living
Madinat Jumeirah Living is a sought-after area across from the Burj Al Arab. It offers luxurious apartments in low-rise towers.
Liwan
Liwan, near Dubai Silicon Oasis, is a quiet community offering a range of apartment sizes in a peaceful setting.
Mirdif Hills
Mirdif Hills is a community with various residential options, including retail stores and leisure amenities, and it offer apartments in different sizes and configurations.
Park Gate Residences
Park Gate Residences is a modern development near the Trade Centre Area that consists of luxurious apartments with views of Zabeel Park.
Mirdif Tulip
Mirdif Tulip is a freehold project located near Mushrif Park that offers apartments with amenities like gyms and swimming pools.
Old Town
Old Town in Downtown Dubai is popular with investors and features elegant, low-rise apartments with traditional Arabic architecture.
Remraam
Remraam is a gated community along Emirates Road. It offers affordable apartments set in green surroundings, with options ranging from studios to three-bedroom units.
The Views
The Views, located next to The Greens, offers apartments with views of the Emirates Golf Club. These apartments consist of different sizes such as studios to two-bedroom units.
The Greens
The Greens is a well-established area along Sheikh Zayed Road, known for its family-friendly atmosphere and modern apartment options.
b. Dubai Freehold Property Areas for Villas
Following are freehold property areas for villas in Dubai.
Arabian Ranches
Arabian Ranches is one of Dubai’s top villa communities, known for its spacious homes and family-friendly amenities such as parks, lakes, and BBQ areas.
Arabian Ranches 2
Following the success of Arabian Ranches, the second phase, Arabian Ranches 2, offers similarly high-quality villas with modern amenities and finishes.
Arabian Ranches 3
Launched in 2019, Arabian Ranches 3 is the third phase of the development. It features villas with high-quality designs and amenities.
Jumeirah Islands
Developed by Nakheel, the Jumeirah Islands consist of artificial islands that feature luxurious family villas and townhouses. The community offers a range of villa sizes.
Emirates Hills
Emirates Hills is a luxury residential area in Dubai known for its high-end villas and prestigious reputation.
Jumeirah Park
Also developed by Nakheel, Jumeirah Park is a family-oriented community with a variety of villa sizes, parks, schools, and shopping areas.
Reem
Reem is a gated community along Al Qudra Road that offers well-finished villas and townhouses with access to Al Qudra Lake.
Palm Jebel Ali
Palm Jebel Ali is one of Nakheel’s large artificial islands, that offers a range of amenities including green spaces, pedestrian-friendly areas, and smart city features.
The Meadows
The Meadows is a major residential development in Dubai with villas surrounded by lakes and greenery. It is divided into several sub-communities that offer a peaceful environment.
The Lakes
Part of the Emirates Living community, The Lakes features a range of amenities like schools, sports courts, and supermarkets. The villas are organized into sub-communities to suit different needs.
The Springs
Also part of Emirates Living, The Springs offers cozy villas spread across multiple sub-communities. The area provides good value and proximity to other residential areas like The Meadows and The Lakes.
The Valley
The Valley by Emaar is an emerging community with convenient access to shops, restaurants, and a shopping center. It features a selection of villas and townhouses.
The Sustainable City
The Sustainable City is an eco-friendly project that focuses on energy conservation. Located behind Arabian Ranches 2, it includes retail centers, schools, parks, and pools.
The Villa
Located near Dubai Silicon Oasis, The Villa offers elegant villas in a serene setting, with options ranging from three to seven bedrooms.
c. Dubai Freehold Property Areas for Villas and Apartments
Following are the freehold property areas for villas and apartments.
Al Barari
Al Barari is a high-end community in Dubai featuring custom-designed villas and apartments surrounded by lush gardens and lakes.
Al Khail Heights
Al Khail Heights in Al Quoz is a large development with freehold apartments and townhouses. It is conveniently located near Al Khail Road (E44).
Al Furjan
Situated next to Discovery Gardens, Al Furjan offers a variety of freehold apartments and villas. Residents benefit from convenient access to major roads like Sheikh Zayed Road and Sheikh Mohammed Bin Zayed Road.
Dubai Islands
Dubai Islands is a mixed-use waterfront project consisting of five islands. It offers a range of property types and is an appealing choice for investors.
Al Warsan
Near International City, Al Warsan is known for its affordable apartments and villas and offers budget-friendly options for residents.
DAMAC Hills
DAMAC Hills is a growing neighborhood with upscale apartments, villas, and townhouses, all set around the Trump International Golf Course. The area features beautiful views and top-notch amenities.
DAMAC Hills 2
DAMAC Hills 2 is a serene community surrounded by green spaces and a golf course. It is popular for its affordable villas and apartments.
DAMAC Lagoons
DAMAC Lagoons is a stylish development with a theme inspired by famous waterfront cities like Venice and Santorini. It features a range of apartments and villas, along with amenities like a mall, clinics, and restaurants.
Dubai Hills Estate
Dubai Hills Estate is a sought-after area known for its luxury residences. It offers a range of high-end apartments and villas.
Dubai Festival City
Dubai Festival City, located along Dubai Creek, offers elegant housing options along with schools, malls, and other attractions.
Dubai Silicon Oasis (DSO)
Dubai Silicon Oasis is a popular area for affordable properties, known for its family-friendly environment and wide range of housing options.
Dubai South
Home to Al Maktoum International Airport, Dubai South is a well-developed area with a variety of properties and world-class amenities.
Dubai Waterfront
Near Palm Jebel Ali, Dubai Waterfront offers a mix of apartments and villas in a developing waterfront area.
Dubai Sports City
Dubai Sports City is a great location for sports enthusiasts, and it features affordable apartments and villas close to Sheikh Mohammed Bin Zayed Road.
Dubailand
Dubailand is a large development with several freehold projects, including Falcon City of Wonders and SkyCourts Towers.
Jumeirah
Jumeirah is a trendy area with new freehold projects like City Walk and La Mer. It is known for its attractive apartments and high potential returns on investment.
International City
Located behind Dragon Mart, International City offers some of the most affordable properties in Dubai, with high potential returns for investors.
Jumeirah Village Circle (JVC)
Jumeirah Village Circle is a popular community with a variety of properties and a convenient location that attracts many investors.
Jumeirah Golf Estates
Jumeirah Golf Estates is a premium residential community centered around golf courses and offers high-end apartments and villas.
Jumeirah Village Triangle (JVT)
Jumeirah Village Triangle is a gated community offering villas, townhouses, and apartments at the junction of major roads.
Mohammed Bin Rashid City (MBR City)
MBR City is a luxurious development with high-end residences, state-of-the-art amenities, and lush surroundings.
Meydan City
Meydan City, home to the famous Meydan Racecourse, is an upscale residential area with a range of modern-day real estate.
Motor City
Motor City features green spaces and a convenient lifestyle, with a variety of apartment and villa options near the Dubai Autodrome.
Palm Jumeirah
Palm Jumeirah is a landmark development known for its luxury waterfront projects, including both apartments and villas.
Mudon
Mudon is a gated community near DAMAC Hills with a mix of ready and off-plan properties, offering various types of homes.
Sobha Hartland
Sobha Hartland is a luxurious community with duplexes, villas, and apartments, along with amenities like Hartland Mall and international schools.
Sobha Hartland II
Sobha Hartland II is a new waterfront development featuring luxurious apartments and villas, close to Dubai-Al Ain Road (E66).
Tilal Al Ghaf
Tilal Al Ghaf is a mixed-use development offering a redefined community living experience with a range of villas.
The World Islands
The World Islands is an exclusive development of 300 islets representing continents. The area offers unique and luxurious residential options.
Town Square
Town Square is a community by Nshama with gardens, parks, gyms, and contemporary apartments, townhouses, and villas.
Expo City
Expo City offers a variety of residential properties, including apartments, villas, and townhouses, designed to cater to diverse lifestyles and budgets.
Wadi Al Safa 2
Wadi Al Safa 2 is a spacious community near Falcon City of Wonders and Liwan, offering a range of villas and apartments.
How to Buy a Freehold Property in Dubai?
Investors who want to buy freehold property in Dubai need to start with a detailed property search, considering location, price, and amenities. At this stage, working with a reliable real estate agent can help you find suitable properties.
Once you select a property, the next steps include negotiating terms, drafting a sales agreement, and arranging financing, which can be through a bank mortgage or private funds.
After completing these steps and signing the purchase agreement, you will receive the title deed confirming your ownership. The Dubai Land Department (DLD) manages this final step to officially record and recognize the ownership transfer.
Frequently Asked Questions
Are foreigners allowed to buy property in Dubai?
In Dubai, foreigners can acquire land through freehold ownership under the Freehold Decree (Law No. 7 of 2006). This law permits non-UAE nationals, including international investors, to purchase, sell, and own freehold property in designated areas.
What is the difference between freehold and freezone areas?
In Dubai, freehold areas allow you to fully own the property. On the other hand, freezone areas are special zones designed to offer tax advantages and make it easier to set up a business. Keep in mind that freehold applies to real estate ownership, while freezone is meant for business activities.
Who can buy freehold property in Dubai?
In Dubai, there are no restrictions based on nationality for property ownership, so investors from around the world can buy freehold properties.
So, this was our detailed guide on freehold properties in Dubai. Feel free to reach us for your real estate needs in Dubai.