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    May 2nd 2019dubai, Freehold, leasehold

    Freehold vs leasehold properties in Dubai

    FThere are two fundamental types of home ownership: freehold and leasehold. This factor is really important part of home ownership and is often overlooked by home buyers.

    What is freehold?

    If you own the building and the land both till perpetuity and it is registered in your name then it is essentially a freehold property. It is pretty much always preferred over leasehold. Till 2002, expats were not allowed to buy freehold properties in the UAE. The decree to permit buying of freehold properties was passed by His Highness Sheikh Mohammed Bin Rashid Al Maktoum, the ruler of Dubai. This allowed foreign nationals to buy property in designated freehold areas such as Dubai Marina, Palm Jumeirah, Al Barsha etc. In addition to this freehold property owners and their families get renewable UAE residence visas. You can buy such properties only from govt. approved real estate agents or developers.

    Advantages

    • Complete ownership and owners can make changes to the structure of their homes.
    • Held till perpetuity and transferred through generations.
    • Authority over buying and selling
    • Renewable UAE residence visas for families.

    Disadvantages

    • Responsibility of maintenance.
    • Availability is designated areas only.

    What is leasehold?

    It means that you lease the land from a freeholder to use the land /home for a limited no. of years. For Dubai the max no. of years you can lease a home for in 99 years after which you lose the lease and control is transferred over to the property owner. Expats were granted the right to leasehold back in 2001. In leasehold the buyer is granted the rights to the unit only and not of the land on which it is built on.

    Advantages

    • More buying options as leasehold is available in a number of areas.
    • It can be renewed at the end of the term, thus can continue to live on the property.
    • Mostly the landowner is responsible for maintenance of the property.

    Disadvantage

    • To make changes to the unit such as renovation, remodeling or alteration you have to make permission from the landowner.

    Which one should you buy?

    Practically speaking freehold property gives you more control as compared to freehold. But 99 years in also a long time and it all depends on how far down the future you are thinking. If you plan to live in The UAE for a long time then the best option would be to freehold a home that you and your family loves and would want to keep it in the family. However, if you’re a seasoned investor and have short term goals in UAE then leasehold is the right option for you. No matter which option you choose it is important to understand the responsibilities and legal rights of each type of ownership.

    Here is list of some sought after areas in Dubai:

    1. Dubai Marina
    2. Palm Jumeirah
    3. Al Barsha
    4. Arabian Ranches
    5. Business Bay
    6. City Walk
    7. Downtown
    8. Dubai Creek
    9. JBR
    10. Sports City

    For more detail regarding these properties visit PropertyEportal.com. Article written by PropertyEportal media team.