Should You Buy Freehold Property in Dubai?

Dubai is known as a hotspot for real estate investment. Different residential projects are underway in different parts of the city. Moreover, investors are available with many profitable opportunities to invest their money and have a continuous income source.

When it comes to Investing in properties in Dubai, there are two main options you can pick from – leasehold and freehold. The owner gets the right to the property as well as the land on which the property is built in freehold properties. The name of the investor/buyers gets registered as the landowner in the records of the Dubai Land Department. However, with leasehold property, the right of land remains with the owner while the buyer gets property rights for a limited time period that is 99 years but can be extended with mutual consent of the parties involved.

Today, we are going to discuss if buying a freehold property in Dubai is a good decision and go through its pros and cons.

Pros of Buying Freehold Property in Dubai

Here are some of the perks of investing in a freehold property:

Remains Within Family

Since the contract for a freehold property is applicable in perpetuity, the landowner’s heir can inherit it if they pass away.

Visa Benefits

Freeholds enjoy extra visa benefits in Dubai apart from the basic two-year visa. Along with the landowner, their immediate family is entitled to have a renewable residence visa in the UAE.

Power to Make Structural Changes

You have the authority to make any modifications or changes to the existing property and don’t need any consent from anyone either which is the case with leasehold property. If the leaseholder wants to make any structural changes to the property, they need to get written approval from the real owner of the land. However, the changes you want should be in line with the neighbourhood laws of the property location.

Unlimited Ownership

The main perk of being the owner of freehold property or investing in one is having total unlimited and unrestricted ownership. You are in complete control of the land regardless of whether you want to keep it or sell it. Also, the owner is free to lease the property to someone else.

Opportunities for Everyone

Whether you are a UAE national or not, you can buy freehold property in the UAE. Foreign nationals living in the UAE can also invest in such properties. But there are few restrictions in terms of the area where they can purchase freehold property.

The Cons

Here are a few drawbacks of investing/buying a freehold property. Before you move ahead, it is best to know about them. Let’s take a look at them:

Complete Property Responsibility

With freehold property, the complete responsibility lies with the landowner. They have to take care of the maintenance as well as any changes that might be required. This could be an additional burden and a hassle at times. But one might think of it as an investment in the property as you can make capital gains by regular maintenance.

Restriction for Foreign Nationals

Foreign nationals have to bear some restrictions in terms of buying freehold property in Dubai as said earlier. However, some areas have been designated for them so they can own such property. In Dubai, these designated freehold areas are spread over 23 neighbourhoods. This greatly restricts the investors in terms of choices as they have a limited number of options to pick from.

So, as far as the opportunities of buying freehold property in Dubai are concerned, there are plenty of options. But it is wise that you take some time and do not make a hasty decision. Even though the price sounds like that of your dreams, always take your time and never rush when it comes to property investment. First of all, compare the pros and cons of the freehold and leasehold options. Think of all the factors that are important for buying property in Dubai and then make an informed decision.

Making a hasty decision could be damaging to you and your financial status later on. So, experts recommend taking professional help from real estate agents in Dubai whether you want to buy freehold property or leasehold. This could significantly lessen the occurrence of frauds or scams.


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