Are you thinking of investing in Dubai real estate? Well, it will definitely be one of the best decisions of your life. Did you know Dubai is the first emirate that allows foreign citizens to buy their own space in a dedicated zone? Yes, it’s true; in 2001, the government of Dubai passed a law under which the expat can buy leasehold property in this city. And a year later (in 2002), the Dubai authorities allowed foreigners to buy freehold real estate. It means that at present, you can buy leasehold apartments or freehold properties in this fastest-growing city of your choice. However, it is important to note that the age of outsiders must be at least 21 years to lease, sell or buy property in Dubai.
Many new investors do not know the real difference between leasehold and freehold ownership and are often mistaken in making the right decision. If you also have confusion between these two ownerships, worry not. Here we are going to have a detailed discussion about them. It will help you to choose the best option.
If you purchase leasehold villas, apartments, penthouses, etc., in Dubai, you can relish the ownership for a fixed time (maximum of 99 years). After the expiration of the lease contract, the ownership eventually passes back to the freeholder. Also, this type of purchase allows the buyer to own the unit, not the land.
The problem with leasehold ownership is that you can’t renovate or remodel your apartment with the permission of a freeholder. First, you need to take written permission, and only then you can make alterations and additions to your unit.
Pros Of Leasehold Ownership
- It is a flexible option as after expiring the lease, you can easily renew it and continue to live in your condo.
- You can get more options at a low price.
- You don’t have to worry about the maintenance and renovation; it’s the freeholder’s responsibility.
Cons Of Leasehold Ownership
- You cannot sublet your unit.
- You cannot make any changes to your apartment without the consent of the freeholder.
Where Can You Buy Leasehold Properties In Dubai?
Some popular areas in Dubai where you can buy leasehold properties are Al Safa, Al Wasl, Al Manara, and Jumeirah 1, 2, & 3.
If you buy a freehold property in Dubai, you will enjoy many benefits. Firstly, you will have complete ownership of the villas, apartments, etc., including the land. And second, you can sell, rent or lease the property without any hassle.
Pros Of Freehold Ownership
- If the property value is above 1 million AED, you and your family can easily get a UAE residence visa.
- Your property is handed over to your family after your death.
- You can renovate your property anytime.
- You enjoy a high return on investment.
Cons Of Freehold Ownership
There is usually no disadvantage to freehold ownership, except that your budget should be slightly higher.
Where Can You Buy Freehold Properties In Dubai?
Some popular areas to find freehold properties in Dubai are Dubai Marina, Palm Jumeirah, Downtown Dubai, Discovery Gardens, and Emirates Hills.
Here are some emerging trends in Dubai real estate -:
- Dubai’s excellent handling of the pandemic has seen a huge influx over the past year and forced people to consider Dubai their home. It has also increased the demand for villas and townhouses, especially in Dubai Land and the suburbs of Dubai.
- It has been reported that the price of Maple and Sidra in Dubai Hills Estate has been increased by 20%-30%. In 2020 the cost of a 4 bedroom flat was 2M AED, and presently it is 2.8M AED. Similarly, the rents have also inclined from 100,000 to 150,000 in 2021. The key spots in Dubai Hills which have seen growth are Bella Casa, Arabian Ranches 3, and La Rosa. In Arabian Ranches 3- the original price for Units in “Sun” started from AED 1.25m – now has reached AED 1.75m in the secondary market.
- Emaar Valley is about to launch a new phase called Nara very soon, which will again be an excellent choice for foreign investors.
The Bottom Line -:
We hope you now understand why investing in freehold properties in Dubai is beneficial. So, if you don’t have money problems, it would be best to buy apartments in Emaar and other freehold properties.