Freehold Property in Dubai: A Complete Guide to Buying The Best Freehold Properties in Dubai
Are you looking for a freehold property in Dubai? The Emirate’s government now authorizes owning freehold property with an investment starting from AED 750,000 with a 3-year visa.
Previously, foreigners used to hesitate to invest in real estate in Dubai due to the ownership laws but now the story is different. Outsiders can buy a freehold property to lock their capital and earn steady profits.
This piece discusses how to buy freehold property in Dubai. Let's start with the basics
What is Freehold Property in Dubai?
A freehold property in Dubai is a real estate that buyers can directly own. The idea of freehold ownership is to give full property ownership rights to foreigners in UAE, including the land it is developed on, for an indeterminate period.
It contrasts with leasehold real estate, where the customer usually only owns the property for a particular lease period, after which ownership returns to the government or landlord.
List of Freehold Areas in Dubai
Dubai Culture Village
Launched by Dubai Properties in 2006, Culture Village is a waterfront property project spread over 3.7 million square meters with multiple residential towers. With 2000 parking lots and transportation facilities, it offers a large road network to commute to different nearby areas easily.
It is a man-made island created in the shape of a palm tree, which is popular worldwide. It has lavish villas, restaurants, apartments and numerous entertainment options.
It boasts epic landmarks such as Dubai Mall and Burj Khalifa and is home to a combination of residential and corporate buildings, plus luxurious shopping malls and eateries.
It is a swiftly growing residential and commercial district with stylish offices, high-rise buildings and lavish homes. Paramount Hotel & Residences and Churchill Residence are freehold properties in Dubai for sale in Business Bay.
With various apartment complexes in themed gardens, Discovery Garden is known as one of the most affordable and ideal family places. It is a large, serene, and gorgeous neighbourhood where the melodious sounds of birds make an eco-friendly zone.
Jumeirah Village Circle
JVC is located in the centre of ‘New Dubai’ and is one of the most popular neighbourhoods in Dubai to purchase freehold properties. Some consider it a place to look for the cheapest freehold properties in Dubai, especially villas.
How to Buy Freehold Properties in Dubai?
Select The Property
Decide whether you need to buy a villa, an apartment or an office and the neighbourhood where you want to buy the property. Think about the affordability and your priorities when identifying the type of property.
Choose A Real Estate Agent
Select a trusted Real estate agency in Dubai that can assist you in searching for your desired property, make offers, and direct you through the purchase process.
You should have requisite capital saved which can include a loan, personal savings, or mortgage from a bank. Remember the qualifying standard for financing could be different for foreigners in the UAE.
Conduct In-Depth Research
Check the property’s title certificate you want to buy to validate the landlord or seller’s credibility and analyse the unit’s condition.
The property developer will ask you to sign a reservation agreement and pay reservation charges once you agree to buy a property. This agreement contains the terms of the sale and can involve a reservation price, typically a percentage of the unit’s cost.
SPA (Sales and Purchase Agreement)
After the reservation, the seller will ask you to sign an SPA. This legal agreement contains the terms and conditions of the deal, such as the sales price, instalment plan and other related information. It's necessary to have a legal expert on your behalf when examining this contract.
It may involve a down payment and the total sales price amount in multiple episodes, ending with the last payment upon completion. If you are buying an off-plan property in Dubai, the instalment plan will be connected with construction milestones.
After completing the series of instalments, the buyer needs to register the property in their name. It includes transferring the unit’s title certificate from the property developer to the buyer by sending an application to the Dubai Land Department.
You need to pay maintenance charges, service fees and other related expenses when you own a property in Dubai. You must know about these continuing costs and save for them accordingly.
The property developer will hand over the property to you upon its completion and payment of all charges. Perform an in-depth examination of the unit to ensure it fulfils the agreed-upon criteria.
You should get legal support and work with experienced real estate agents to ensure a streamlined and lawful property purchase. Be aware that real estate rules and policies in Dubai may change, so keep yourself updated and informed throughout the purchase process.