A peek into buying freehold property in Dubai

[kabirmulchandan]

A lot needs to be researched when buying property, especially when it comes to your entitlements. Before deciding to invest in a property, it is important to understand the difference between freehold and leasehold property and the rights and responsibilities owning a freehold property gives you, before you take the step to buy it.

The Dubai system offers freehold to owners of all nationalities, but in the case of high-rise and multiple occupancy buildings exactly what that means in terms of legal title has yet to be completely defined.

Freehold areas in Dubai include plots in Jebel Ali, the Palm Island projects, The World islands, Dubai Marina, Emirates Hills and Al Barsha, among others.
There is no way for a foreigner to own property in non-designated areas. If a foreigner wishes to own property in the non-designated areas, a long lease agreement is the best bet.

As far as residency is concerned, in principle, a person could own a property in the UAE and choose not to reside in the property, so you do not need to be a resident to buy freehold property as it could be your holiday home. Developers offer visas with property purchase where buyers are entitled to a six-month multiple entry visa. According to Gulf News, a recent cabinet decision entitles foreign property owners to a three-year residence visa if they buy a property worth Dh1 million or more, however this is not yet a law. Ownership of property and residency or sponsorship are interrelated but should be looked at separately.

Good luck with your decision!

Kabir Mulchandani
Skai Holdings
Dubai