Freehold residential plots in Dubai to consider

• Leasehold Vs freehold
• Top areas
• Buying land in Dubai
• Reasons to buy

Those looking at investing in the Dubai real estate market have a variety of prospects, from stunning penthouses to gorgeous villas and cosy apartments. Although a large majority of property investors in Dubai look at either ready or off-plan properties to purchase, there are some folks who crave uniqueness and individuality. For them, buying freehold residential land in Dubai is a sound option.

If you are planning to invest in freehold plots to design custom-made homes or simply buy land in Dubai, here’s some helpful information before making the purchase.

Leasehold Vs freehold residential plots in Dubai

Much like the ready real estate in the UAE which is divided into freehold and leasehold properties, plots also fall under freehold or leasehold category. Freehold plots are units of land which you own while leasehold plots are those for which there is a tenure attached to the plot.

Freehold residential plots in Dubai are predictably more expensive than leasehold options. There are a number of areas where investors can buy freehold land in Dubai including Dubai Hills Estate, Al Furjan, Palm Jumeirah, Pearl Jumeirah and Akoya Oxygen.

Top 5 areas with freehold residential land for sale in Dubai

There are several residential areas where investors or buyers can buy freehold land for sale in Dubai. According to our data, the mentioned areas below currently have residential land for sale in Dubai in this category. Here is an overview of each, with their average prices according to square feet. 

Al Furjan

Al Furjan is a vibrant neighbourhood located between Sheikh Mohammed Bin Zayed Road and Sheikh Zayed Road. One of the several freehold areas in Dubai, the gated community features property types like villas and apartments available for sale and rent.  Additionally, interested investors also have the option of acquiring residential plots here. Presently, the average price per square feet for residential plots for sale in Al Furjan is AED 316. 

Dubai Hills Estate

Another area where you can find residential land in Dubai is Dubai Hills Estate. Also referred to as Dubai Hills, the community is located in the heart of the city, next to major road networks. Apart from townhouses, apartments and villas, buyers also have the option of purchasing residential plots here. The average price per square feet of residential plots for sale in Dubai Hills Estate is AED 541.

Palm Jumeirah

The man-made archipelago is an architectural marvel — with investors jumping at the chance to purchase real estate here. The Palm Jumeirah Dubai has an exceptional collection of luxury properties scattered around the Trunk, Crescent and 16 Fronds. Moreover, the area also attracts expat buyers looking for freehold real estate, particularly freehold residential plots. The price per square feet of residential plots for sale in Palm Jumeirah averages at AED 895. 

Pearl Jumeirah

Pearl Jumeirah is an archipelago of seven residential islands located just off the Jumeirah coastline close to Al Satwa. Like Palm Jumeirah, it’s one of the more unique residential islands in Dubai. The area is also popular for its luxury resort, residential apartments, villas and plots.

Those looking for residential land for sale in Dubai may consider Pearl Jumeirah in their search. As for what they might be expected to pay, the average price per square feet of residential plots for sale in Pearl Jumeirah is AED 478.

Akoya Oxygen

Akoya Oxygen can be another development on the list for anyone looking for affordable freehold residential land in Dubai. A project by DAMAC Properties, this is a self-contained community in Dubailand. Aside from houses and flats, the demand for residential plots here is also high. Investors can also opt for plots of land and construct villas or townhouses on it, according to their preferences. The sales price of residential plots in Akoya Oxygen averages at AED 270. 

Jumeirah Village Circle (JVC)

Also referred to as JVC, Jumeirah Village Circle is a popular family-friendly community in the heart of new Dubai. The area is particularly popular for palatial properties like villas and townhouses. However, interested parties may also consider it as part of their search for freehold residential plots in Dubai. 

The average sales price per square feet of residential plots in JVC is approximately AED 182.

How to buy land in Dubai

If you are planning to invest in freehold residential land in Dubai, be aware of the fair few steps involved in the process of purchasing one.

• First, zero down on a location. Some of the popular investment options include plots in Business Bay and Dubai Marina, besides those listed above. The average price for freehold residential plots in Dubai can vary significantly. It can be as low as AED 60 – 100 per sq. ft and as high as AED 600-750 per sq. ft. depending on the popularity of the area. Districts such as Business Bay, Dubai Marina, Pearl Jumeirah and Palm Jumeirah are predictably more expensive than Al Furjan and Liwan. So make your choice based on your budget.
• Once you have identified your location, approach the master developers or sub-developers or real estate agents dealing with the area. For instance, in Pearl Jumeirah, the master developers are Meraas, so those looking to buy land here would need to contact them.
• On deciding the financial terms and agreeing on a price, a sales agreement or memorandum of understanding (MoU) is signed upon the payment of a 10% deposit. If you are buying from the secondary market, the seller has to get a no-objection certificate or NOC from the master developer and transfer the title deed or ownership of the plot to the buyer at the Dubai Land Department (DLD). The developer will usually issue the NOC against payment of a fee once they are satisfied that any amount due to the developer in the form of service charges have been settled in full. In case a mortgage was taken out by the seller, the buyer will have to settle the mortgage fully before applying for NOC.
• When the NOC is issued, the transfer of ownership can be completed at DLD. Usually, the authorities will insist on the payments being made in the form of managers’ cheques.

For a full review of fee payments, check out our guide on the cost of selling a property in Dubai.

Why buy land in Dubai?

Many people think of property as an investment, something that appreciates over time and gives you a good return on investment. A large majority also view buying property as an emotional experience, building a home where you can create memories with the family. For expats and locals looking at real estate investment opportunities, either from the perspective of ROI or as an emotional milestone, there are a few things to consider before making the decision to own land in Dubai.

Historically, land has proven to be more lucrative than ready properties when it comes to investment options, but this obviously depends on how much the locality you buy land in Dubai appreciates over the course of time. Investment in land is also often lesser than for a ready unit, but this will be offset if you end up constructing on that land.

While some of us may intend to buy land and build custom-made homes, bear in mind that they come with restrictions. Depending on the developer you are buying from, there will be strict guidelines on the kind of property you can construct. You will also need to get all blueprints and architectural designs approved by the developer and the land department.

If you are considering buying freehold residential land in Dubai as an expat, be sure to do all the right research. For instance, you can learn what a commonhold property is in Dubai. Work with a trusted real estate agent and make sure you know all the stipulations that come with this type of investment opportunity in Dubai. You may also consider available commercial properties in Dubai.

For more real estate related information, stay tuned to the best property blog in Dubai!