A Complete Guide to Freehold Properties in Dubai

Dubai is a city that attracts people from around the world with its modern lifestyle, futuristic infrastructure, and vibrant real estate.

As an investor in Dubai’s real estate, you need to know the basics, including the terminology, so that you can choose the best option. One of the more appealing options in Dubai is freehold properties, allowing non-UAE nationals to own real estate in certain areas.

And if you don’t know what we are talking about, read this guide as we explain everything you need to know about freehold properties in Dubai. Right from what they are to how you can purchase one, along with the benefits and key considerations.

What Are Freehold Properties?

Freehold properties are pretty much the same all over the world. However, in Dubai, they are highly sought after.

This is because freehold properties in Dubai grant full ownership rights to the buyer, including the land on which the property is built. Unlike the more common leasehold properties, which offer ownership rights for a limited time (usually up to 99 years), freehold properties give you permanent ownership. This means you can sell, lease, or pass the property on to your heirs without restrictions.

Point to be noted: Freehold properties in Dubai are only in designated areas specified by the government. First introduced in 2002 to encourage foreign investment, they continue to be a prime part of Dubai’s real estate market.

Should You Buy Freehold Property in Dubai?

Well, yes! Let us tell you why.

Full Ownership

Freehold ownership means you have complete control over your property. You can renovate, lease, or sell it without seeking permission – the only caveat being that you comply with local laws.

Capital Appreciation

Dubai’s real estate market has a strong record of delivering good returns. With the continuous ongoing developments, infrastructure projects, and a steady influx of tourists and residents, your property’s value will definitely appreciate over time.

Rental Income

And while the property appreciates in value, you can rent it out, taking advantage of Dubai’s high rental yields. Freehold properties are usually in prime areas like Downtown Dubai or Dubai Marina and can provide high rental returns.

Residency Visas

Buying a freehold property in Dubai can qualify you for a residency visa. Depending on your property’s value, you could even be eligible for a long-term visa, such as the Golden Visa, which provides 10 years of residency benefits.

No Property Taxes

The cherry on the cake is that Dubai does not impose property taxes on freehold properties, which makes it a wise choice for investments and living.

Before Buying, Check These Out!

Market Trends

Familiarise yourself with local market conditions and any future developments in your preferred area. Growth in infrastructure or demand can boost property values, providing better returns.

Financing Options

Explore suitable mortgage options if you’re not buying outright. Many local and international banks offer financing to non-UAE nationals – shop around for the best-fit option.

Maintenance Costs

Freehold properties come with annual service charges for maintenance and amenities. Factor these costs into your budget to avoid nasty surprises down the line.

Property Inspection

Conduct a thorough inspection to ensure the property’s condition meets your expectations. Call in professionals to get a more comprehensive report.

Always consult with real estate and legal experts to avoid potential pitfalls and ensure a smooth transaction.

Popular Freehold Areas in Dubai

Like we said, Dubai has several designated freehold zones that cater to a range of lifestyles and budgets. Here are some of the most sought-after areas for freehold properties:

Downtown Dubai

The place to be in Dubai! Downton Dubai is home to the iconic Burj Khalifa, Dubai Mall, etc., and has luxury apartments with excellent rental opportunities. Obviously, you pay a premium for such a prime location.

Dubai Marina

Justly famous for its uber-luxurious waterfront living, Dubai Marina features many high-rise apartments with stunning views and vibrant nightlife.

Palm Jumeirah

This man-made island is a byword for sophisticated luxury, offering upscale villas and apartments.

Dubai Hills Estate

Dubai Hills Estate offers villas and townhouses in a serene environment with excellent amenities, a perfect choice for families.

Dubai International City

A more affordable option compared to the others, Dubai International City is a popular option for budget-conscious investors and first-time buyers.

How Do You Buy Freehold Properties in Dubai?

The procedure is pretty straightforward and similar to how you would approach any other property investment. However, ensure that you do your homework first.

The process will involve:

Research and Planning – Identify your goals as clearly as possible. Are you buying for investment, personal use, or both? Research freehold areas and property types that fit your budget requirements.

Find a Reliable Agent -Work with a certified real estate agent to help you navigate Dubai’s property market. They can find properties that suit your needs and guide you through the legal process, as smoothly as possible.

Conduct Due Diligence – Always make it a point to ensure the property is free from any legal issues or encumbrances. Your agent should be able to verify its ownership and check for any ongoing maintenance or service fees.

Make an Offer and Sign an MoU – Once you select the freehold property, make an offer and sign a Memorandum of Understanding (MoU) with the seller. A 10% deposit is usually required at this stage.

Obtain a No Objection Certificate (NOC) – Insist on getting a NOC. The seller will need to secure an NOC from the developer, confirming no outstanding dues on the property.

Register with the Dubai Land Department (DLD) – You can then complete the transaction by registering the property with the DLD. You’ll need to pay a transfer fee (usually 4% of the property’s value) and provide necessary documents, including identification and proof of funds.

Legal Aspects to Keep in Mind

• All freehold properties must be registered with the DLD, which provides a title deed as proof of ownership.
• For off-plan purchases, payments are held in escrow accounts managed by the DLD. This ensures your investment is secure until the property is completed.
• Developers must comply with Dubai’s strict building codes, ensuring safety, quality, and sustainability.

FAQs About Freehold Properties in Dubai

These are some commonly asked questions – we have provided answers here to help you learn more.

Can non-residents buy freehold properties in Dubai?

Yes, non-residents can buy freehold properties in designated areas.

Are there property taxes to be paid on freehold properties?

No, Dubai does not impose property taxes, but you may need to pay annual service charges.

Can I rent out my freehold property?

Yes, you can lease your property for rental income, and Dubai’s rental yields are among the highest in the world.

What is the minimum investment for a residency visa?

You need to invest at least AED 750,000 to qualify for a 2-year visa, or AED 2 million for a 10-year Golden Visa.

An Ideal Choice!

Wrapping up, we repeat that freehold properties in Dubai offer excellent opportunities for investors and homeowners.

With major benefits like full ownership, strong rental yields, and residency visas, they remain a top choice for expats worldwide. This does not mean that thorough research and professional guidance are not essential.

Whether you’re looking for a luxury apartment or a family-friendly villa in Dubai’s freehold properties, the city’s diverse real estate market has something for everyone. And at Save Max, we would be delighted to help you close the deal!