Unrestricted ownership: The freehold property law in Dubai
In 2001, the Dubai government made a monumental decision that changed the course of the real estate industry and in effect the economy of the emirate. A Freehold Decree allowing foreign nationals aged to buy, sell, lease or rent properties in specific localities changed how Dubai was viewed as a destination for property investment. At the time, some particular freehold property ownership laws in Dubai were introduced. Here, we shed light on freehold land ownership rules and regulations.
FREEHOLD PROPERTY OWNERSHIP LAWS IN DUBAI: AN OVERVIEW
To understand freehold property ownership rights, one should know the difference between a leasehold arrangement and freehold ownership. Leasehold ownership goes back to the landowner after a specific period of time. Whereas, freehold ownership means the buyer gets ownerships right to the property and the land it is built over. You can read our explainer about leasehold vs freehold property ownership to learn more.
The introduction of freehold property ownership laws in Dubai allowed foreigners to invest in a property knowing that they have the full ownership rights.
Hence, this means that when you purchase a freehold property in a designated area, The Dubai Land Department (DLD) recognises you as the owner of the land and issues a title deed for the property. Freehold property ownership rights are the same for different types of properties.
So, when you define a freehold property, it could be said that it is one where the land and the property both are in the name of the landlord. A freehold owner has control of the structure and the land and is free to make structural changes or renovate the property.
FREEHOLD DECREE
Real estate market in Dubai is regulated by the government to ensure that there is no infringement of rights for any of the stakeholders involved. Laws are introduced to ensure fairness and attract more investment in the market.
The freehold property law is underpinned by Freehold Decree, officially designated as Law No. 7 of 2006. The foreign direct investment in the property market of Dubai has been primarily a result of this Decree.
BUYING A FREEHOLD PROPERTY IN DUBAI
The process of buying a freehold property starts with searching for a property. You can commence your initial search with Bayut. Plus, with area guides and blogs, you can read about specific districts and identify which suits your circumstances best. Next, typically, people tend to go with a real estate agent who can guide you through the entire process.
Once a property has been identified and subsequently, a deal has been agreed upon with a seller, the agent can take you through the documentation process and, lastly, acquire the title deed. You can read our guide on how to invest in Dubai real estate to find out more.
TYPES OF FREEHOLD PROPERTIES
As per the freehold property ownership laws, foreigners are allowed to buy both commercial and residential properties in designated freehold areas.
RESIDENTIAL PROPERTIES
In terms of residential properties, you can find flats, villas and townhouses with varying bed sizes and architectural design. Similarly, among the designated areas, you can find a mix of affordable and luxurious properties. You will have a gamut of choices when it comes to types of residential properties in Dubai.
COMMERCIAL SPACES
Similarly, there are many types of commercial properties in Dubai, such as retail spaces and warehouses in freehold zones. Depending on your requirements, you can find commercial properties in shopping centres and free zones to run your business.
ELIGIBILITY CRITERIA
When it comes to nationalities, there are no restrictions on any nationality. Freehold properties in Dubai can be owned by investors aged 21+, regardless of their country of origin.
FAQS
DEFINE A FREEHOLD PROPERTY?
As per the freehold land ownership rules and regulations, buying a freehold property grants rights over the land and the property to the owner for an indefinite period.
WHICH ARE THE FREEHOLD AREAS IN DUBAI?
Here is the list of freehold areas in Dubai. Foreign nationals can consider buying a property in these localities.
WHAT ARE THE PROS AND CONS OF BUYING OFF-PLAN PROPERTY IN DUBAI?
Planning to buy an off-plan property? Read our list of pros and cons of buying a freehold property in Dubai to gain key insights.
CAN NON-RESIDENTS BUY FREEHOLD PROPERTIES IN DUBAI?
Yes, freehold property ownership laws allow non-residents to buy properties in the emirate.
AS A FIRST-TIME HOME BUYER, WHAT SHOULD I BE CAREFUL ABOUT?
Buying your first home in the UAE? We have curated a list of FAQs for first-time home buyer that can help you navigate this entire process.
That concludes our look at the freehold property ownership laws. Dubai real estate market has been attractive for investors and developers from across the globe. The incredible infrastructure, transport network and favourable business policies attracts top companies to base their operations here. Which means, professionals move here thanks to the numerous opportunities. Thereby, the demand for housing goes up every year. Hence, whether it is a rental property or one for sale, you are likely to get a good return on your investment.
