What is a commonhold property in Dubai?
Are you interested in buying property in Dubai? Before you decide to purchase an asset, it’s a good idea to familiarise yourself with the different types of real estate ownership available to UAE nationals and expats in Dubai. While freehold and leasehold ownerships are well-known in the emirate, many people aren’t familiar with commonhold property in Dubai.
Like freehold property, commonhold ownership mainly concerns apartments for sale in Dubai. Here’s our ready reckoner on commonhold properties in Dubai and where you can find it.
WHAT IS COMMONHOLD PROPERTY IN DUBAI?
With freehold ownership in Dubai, you can fully own apartments in areas like Dubai Marina and Downtown Dubai, receiving a title deed for the unit but not the land. In contrast, freehold villas and townhouses include ownership of the property and the land.
Therefore, freehold apartments are often called commonhold properties in Dubai. Despite this difference, commonhold owners have the same rights as freehold owners. They can buy, rent, occupy and sell commonhold apartments or pass them on as inheritance, with no time restrictions. They may also be eligible for a UAE residence visa.
Since the land for commonhold properties is not owned by any single person, all owners share the cost of maintaining the building, such as cleaning, security staff, landscaping and general upkeep. This is done through the payment of service charges, which are typically collected by the developer.
ADDITIONAL COST OF COMMONHOLD PROPERTY IN DUBAI
In addition to the property purchase price, commonhold property owners must pay recurring fees for the upkeep of the building’s common areas. These are known as service charges in Dubai and can vary depending on a number of factors. These include the location of the building, the developer, the size of the unit and the property’s usage.
This commonhold property fees consists of several different charges, including the following:
- Maintenance
- Improvement
- Utility services
- Management services
- Insurance
- Services
- Chiller or district cooling fees
Owners of commonhold property in Dubai can calculate their service charges using the ‘Service Charge Index’ on the official website of the Dubai Land Department. This index allows commonhold property owners to see the current service charges for their building and the exact breakdown of the fees as well.
COMMONHOLD PROPERTY AREAS IN DUBAI
Buyers can find commonhold properties in Dubai’s designated freehold areas. The most popular areas for apartments are Arjan, Barsha Heights, Bluewaters Island, Business Bay and Culture Village.
For commonhold villas in Dubai, consider areas such as Arabian Ranches, Emirates Hills, Jumeirah Island and Jumeirah Park.
FAQS ABOUT COMMONHOLD PROPERTIES
CAN EXPATS BUY PROPERTY IN DUBAI?
Yes, they definitely can! Al Furjan, Dubai Hills Estate and Palm Jumeirah are some areas with freehold residential land in Dubai where expats can invest.
IS COMMONHOLD BETTER THAN LEASEHOLD?
While many people prefer commonhold or freehold ownership, leasehold properties also attract a certain segment of buyers. These buyers typically enjoy a 99-year-long lease and limited liability over repairs. You can refer to our guide to leasehold vs. freehold ownership in Dubai to make an informed decision about which one is better for you.
WHAT DOES FREEHOLD PROPERTY MEAN IN DUBAI?
Freehold property means you enjoy complete ownership of a flat or a villa, as well as the land on which the property stands.
WHAT HAPPENS TO DUBAI PROPERTY AFTER 99 YEARS?
When a lease expires after 90 years in Dubai, the leasehold reverts to freehold or to the landlord who granted you the lease.
That concludes our guide on commonhold property ownership in Dubai! As you can see, this type of property ownership allows buyers to enjoy freehold rights over apartments while paying a significantly lower price than freehold villas.
If you’re on the fence about investing in the emirate’s real estate market, weigh the pros and cons of buying property in Dubai to make the final decision. You will find many residential properties in Dubai, from cosy apartments to chic lofts and luxury penthouses.
Stay tuned to MyBayut for more articles on investing in Dubai real estate!
