A great deal needs to be considered when purchasing a property. Before choosing to put resources into real estate, you should understand the difference among freehold and leasehold property and the rights and obligations owning a freehold property gives you.
Owning a freehold property has many advantages over renting for one fundamental reason: control. As the proprietor, you can, for the most part, do whatever you like with your home whether improvements, renovations or simply design and décor.
Current Freehold Opportunities in Dubai
In 2001, the Dubai government consented to enable expats to have a 99-year rent of specific Dubai property. In May 2002, His Excellency Sheik Mohammed Container Rashid Al Maktoum, VP and PM of the UAE and Leader of Dubai issued a decree enabling foreign nationals to purchase property under freehold proprietorship. This announcement lead to a boom in Dubai’s private property market which lasted more than a decade.
Freehold areas in Dubai can be further divided into 2 categories: top areas for Freehold for apartments and Top areas for Freehold for Villas. The best areas for apartments include Dubai Marina, Downtown Dubai, Jumeirah Village Circle (JVC), Jumeirah Lake Tower (JLT), Palm Jumeirah, International City, Dubai Sports City, Business Bay, Dubai Silicon Oasis, Jumeirah Beach Residence (JBR), among others. On the other hand, top freehold areas for villas include Palm Jumeirah, Arabian Ranches, Dubailand, The Villa, The Spring, DAMAC Hills, Arabian Ranches 2, Mudon, Emirates Hills and The Meadows, among many. There are many more ideal freehold areas in Dubai for real estate investment.
You need to register your property with the Land Division for full legal possession. When a property is finalized and given over to the buyer, the designer must enlist the title to the property for the sake of the buyer in the Real Property Register at the Land Division. Land will be enlisted for the sake of a foreign national after the designers present a no-objection letter, expressing that every one of the installments for the exchange have been made.
The Dubai Freehold law determines the capacities and obligations of the Branch of Land and Property, which has so far been doing practically everything absent much lawful clearness. According to the law, the division will decide the study zones; favor the land map and the expenses for the administrations given by the office.
Foreign nationals are not allowed to buy a property in non-assigned regions. In the event that an outsider wishes to possess property in the non-designated territories, a long lease understanding is the best wagered.
Another option is a long lease, which is an entirely different arrangement to freehold property. Long lease in regions other than those assigned can’t be enlisted at the Land Department by outsiders under the new Law. Anyway in spite of this, these leases stay as close to home rights and are legitimate. Unregistered long lease in zones outside of the assigned ones stay enforceable as close to home legally binding rights between the parties. With respect to any debate that may emerge from an unregistered long lease, judgment will be passed by the Lease Board of trustees.
Residency and Visa Options
To the extent residency is concerned, on a basic level, an individual could own a property in the UAE and decide not to live in the property. For example, it is possible to purchase a freehold property for a vacation home. Some developers even offer visas with property purchases: in this case the buyer can obtain a six-month different section visa. Remote property proprietors, that is people who own property in Dubai but live overseas, will be eligible for a three-year habitation visa if they purchase a property worth at least 1 million dirhams. However this regulation is yet to be passed into law.
In these ways, residency and property ownership in Dubai are interrelated. If you are considering taking up residency in the UAE, you should consult with an immigration lawyer. The UAE is now considering introducing longer term living arrangement visas for foreigners. They have also recently introduced laws allowing 100% foreign ownership of business in certain circumstances. Both of these factors are having significant effects on both the commercial and residential property markets. Those foreign nationals with long term leases on UAE properties may very well now consider buying their own home in Dubai.
The current property visa is a two-year sustainable property financial specialist visa issued by the Dubai Land Office for a freehold property valued at at least 1 million dirhams on the title deed. This is explicitly for Dubai property ventures. There is also a six-month residency visa, a different section visa that is issued by the significant migration expert for buyers of property in the UAE.
“We welcome the progressions to residency visa guidelines, which will without a doubt positively affect the UAE economy – and specifically the land area,” said Nakheel administrator Ali Rashid Lootah.