UAE is always known for many business opportunities, and it invites investors to establish their luxurious lives and build businesses in a strategic location. We can’t deny that places like Dubai and Abu Dhabi have some of the world’s most famous skyscrapers and ambitious developments, attracting both residential and commercial investors.
This is why Dubai’s real estate department is always offering new property purchase opportunities. However, there are different types of properties available. One of the most in-demand is freehold property, along with leasehold. People can get misguided due to a lack of knowledge.
This article compiles everything about freehold property for sale in Dubai to help you understand it better.
But First, Know the Difference between Freehold and Leasehold Dubai
The most noticeable distinction between freehold and leasehold ownership is the level of control. Freehold owners have greater control over their property units and land, allowing them to renovate and modify the structure as they see fit.
When you buy a leasehold property, you only own the property itself, not the land on which it is built. The land is still owned by a government or a private landowner.
Understanding Freehold Property
Freehold property is defined as permanent property that has entire ownership of the land and any properties on it. In the early 2000s, Dubai introduced the notion of freehold ownership for foreigners. This actually started to signal an important shift in real estate, understanding that it would pique the curiosity of investors from all over the world.
So, it is evident that you can have sole ownership of your residential freehold property in Dubai by having the complete right to resell, lease, or occupy it.
Key Benefits of Buying Freehold Property in Dubai
To have the right strategy for real estate investment in Dubai, one must know the major benefits of freehold property.
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Freedom & Flexibility
The primary advantage of acquiring freehold property for expatriates is the complete control and flexibility of use that renting or other ownership models do not provide.
The Dubai government, as the regulatory authority, has approved various freehold zones throughout the emirate. Foreign nationals can purchase leasehold or freehold properties in certain selected locations.
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Strong Potential for Capital Appreciation
Dubai’s property sector has a proven track record of capital appreciation. According to Savills World Research, residential property prices in Dubai are predicted to climb 4% to 5.9% by 2024.
This growth is being driven by continuing infrastructural investments, the hosting of mega-events such as Expo 2020, and a constant influx of visitors. Success tales abound, with many Indian investors seeing considerable property value gains over time.
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Rental Income Opportunities
Dubai’s thriving rental market is a promising option for investors searching for a consistent source of income. Freehold apartments for sale and freehold villas in Dubai provide consistently high rental yields.
According to Global Property Guide, the average flat rental return in Dubai is currently around 6.5%. This implies that investors may expect a constant stream of income, making Dubai an excellent alternative for diversifying their portfolio.
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Visa Eligibility
To entice more international investment, the UAE government is now tying property ownership to long-term residency visas. These improve over time.
Currently, freehold owners who meet any of the following qualifications are eligible to apply for family members.
- Three-Year Property Visa: The Dubai Land Department offered this visa to individuals who invest in a property valued at at least AED 750,000. The property may be one of up to three.
- Five-Year Visa: Required to own a property worth at least AED 5 million.
- Ten-Year UAE Residency Visa: Real estate in Freehold Zones is available for purchase. The minimum investment is AED 2 million.
- UAE Golden Visa: The purchase of a property or group of properties worth at least 2 million Dirhams is necessary.
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Inheritance & Gift Rights
One important advantage of freehold Dubai properties in Dubai is that the property remains in your family. It will be automatically transferred to your heirs in accordance with Islamic inheritance laws. There is little possibility that ownership will revert to the developer.
You can also give the property to children or other relatives. Commercial freehold property for sale in Dubai allows you to legally transfer ownership without paying any fees or taxes.
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No Ongoing Fees
In contrast to leasehold or strata properties, freehold owners do not pay annual service costs or community dues. Maintenance and upkeep are self-managed based on individual needs and budgets.
The lack of recurring expenses is also beneficial from an investment standpoint; your rental yields will remain high over time.
Popular Freehold Areas in Dubai Investors
If you are new to the game, you must first know the areas of target for you. So, here are the places to look when looking to invest in freehold areas of Dubai.
- Dubai Marina
- Palm Jumeirah
- Downtown Dubai
- Dubai Hills Estate
- Dubai International City
Bottom Line
Investing in freehold property in Dubai offers significant advantages, including full ownership rights, strong potential for capital appreciation, and promising rental income opportunities.
The UAE government’s initiatives, such as linking property ownership to long-term residency visas, make it an even more attractive option for international investors. Popular freehold areas like Dubai Marina, Palm Jumeirah, and Downtown Dubai provide diverse opportunities for lucrative investments.
With benefits like inheritance rights, no ongoing fees, and flexible usage, freehold properties in Dubai present a strategic and rewarding investment opportunity.
For expert guidance and comprehensive real estate services, Las Colinas Real Estate is a trusted name in the industry. It helps investors navigate Dubai’s dynamic property market efficiently and effectively.