Buying real estate in UAE, particularly in Dubai, is an important and huge decision to make. It involves a lot of money and a fatal mistake can lead to many years of regret. For this reason, getting as much information as possible is crucial.
Among the terms you might encounter as you dig deeper into Dubai’s real estate market is “freehold.” You might wonder what freehold means and whether it would be a good investment for you or not.
Before you make any decision, here some advice. Understanding what freehold means would give you more ideas on how it will benefit you.
Freehold property in Dubai is a property that is owned completely by the owner. If a property is a freehold property, it means that the owner owns both the building and land.
Freehold property is different from a leasehold property primarily in terms of ownership. In a leasehold property, the land is leased for a fixed amount of time. In the UAE, the maximum amount of lease term is 99 years.
When a property is leasehold, th owner only owns the building, but not the land. After the lease contract expires, the owner of the land would take ownership of whatever is built on the land. However, both parties can decide to extend the lease contract or not.
The differences between freehold and leasehold are mentioned so you will have a better idea of what a freehold property is.
The most important reason for you to get a freehold property is that you obtain full ownership. You don’t need to worry about giving up the property in the future, unlike with a leasehold property.
Once you have purchased a freehold property, you, as the buyer, would be named as a ‘landowner’ in the Dubai Land Department (DLD) registry. You would then be given a title deed for the property.
The beauty of a freehold property is that you, as the owner, would be free to sell, lease, or occupy the property. Since freehold property is yours forever, it can be passed on to your heirs. This means that you have the choice to keep the property within the family or the people you prefer.
Here are some important features of a freehold property:
There are some restrictions that you should know about freehold Dubai properties. For example, you can’t simply buy properties from anywhere in the UAE. The government has designated areas where you can buy a freehold property as an expat. Not only that, but you also need to buy it from government-approved real estate developers and real estate agents.
Moreover, since you’re the owner of the property, you are responsible for maintaining it. In some cases, unless otherwise stipulated in your contract, you will be the one who will repair any damages to your property.
Finally, perhaps, one of the biggest roadblocks you may encounter when getting a freehold property are the costs. Obviously, freehold properties are more expensive compared to leasehold since you will have a perpetual right to the property.
You just received a quick glimpse of what freehold means and whether it is the right option for you or not. There is more to know about this topic and it is crucial that you have as much information as possible before you make a decision.
Thankfully, Rocky Real Estate is here for you. We have some of the best Dubai real estate experts who have the right knowledge, skills, and experience to help you explore your options. We are highly familiar with Dubai’s real estate market and will guide you through the buying process. Give us a call today to learn more!
+971 4 3532000 