Nowadays Dubai has become one of the key destinations for real estate investors. One of the key reasons for that is the specifically designed Golden Visa program. As an investor you need to note that if you want to apply for 10-year residency, you need to buy only freehold real estate. But what is freehold property in Dubai and why does it really matter?
In this article, we’ll cover the meaning of freehold properties, list the benefits of them and then explain the overall process of buying freehold property in Dubai.
- Buying freehold property allows you to have full ownership rights on the property and the land.
- The key areas of Dubai for property investment are Downtown Dubai, Dubai Marina, Palm Jumeirah, Business Bay, and Jumeirah Village Circle (JVC).
- Some of the great benefits of owning freehold property in Dubai are full ownership rights, tax-free investment, high rental investment, and the Golden Visa program.
What is Freehold Property?
Before making an investment, you need to understand what freehold property is in Dubai. Freehold property is considered the real estate that gives you ownership rights once you buy it. In simpler terms, you own the property and the land it’s built on with no time limitation.
Learning freehold areas is crucial especially if you want to apply for Golden Visa programs. Some countries like UAE will require you to invest in a property that’s only in a freehold area.
Areas in Dubai Where Freehold Property is Available
After understanding what is freehold property in Dubai, we need to have a closer look and find out what are the freehold areas in Dubai.
1. Downtown Dubai
This area is considered among the prime property investment districts in Dubai. Here visitors can discover well-known tourist hotspots like the Burj Khalifa and Dubai Mall. That’s why Downtown Dubai is considered a place where you can buy the best freehold property in Dubai. You can also meet people of almost any nationality. In terms of real estate, 96% of properties are apartments, 1% are penthouses and <1% are hotels. Here are the Dubai property prices for the apartments; Rent Price: 64,999 AED/year, Sale Price: 800,000 AED.
2. Dubai Marina
One other crucial place for property investment in Dubai is Dubai Marina. Famous for its waterfront apartments and towering highrises, Dubai Marina was home to both residents and tourists, not to mention plush apartments and townhouses. 94% of properties are apartments, 2% are penthouses and 1% are hotels. Property prices in Dubai Marina are slightly lower than those in Downtown Dubai. The rental price for an apartment starts from 55,000 AED/year and for sale is 435,000 AED.
3. Palm Jumeirah
Palm Jumeirah, the famous, man-made island, has a colorful culture featuring beaches, restaurants, cafes, and five-star hotels. Its buildings have pleasant views of the Dubai coastline, Burj Al Arab or Dubai Marina. Apartments make up 76% of the properties here, villas 14%, and penthouses 3%. An AED 70k/year is the minimum rent for a rental apartment. For the apartments for sale, the minimum price is 749,000 AED.
4. Palm Jebel Ali
A luxury address set to redefine living and tourism in Dubai, Palm Jebel Ali, recently opened a new chapter. This massive, hyper-efficient sibling of Palm Jumeirah has the potential to become a world landmark that fuses high-tech, high-class infrastructure with eco-friendly design in a natural oasis.
5. Business Bay
Business Bay is one of the most famous business hubs in Dubai. Its prime position beside both the DIFC and Downtown Dubai is one of the most important areas for property investment in Dubai. Encompassing 46.9 million square feet, this region consists of around 240 buildings — most of which are skyscrapers. Apartments account for 96% of properties, hotels for 1% and duplexes for <1%. On the matter of the real estate prices in Dubai in this area, prices for rented apartments start from 46,000 AED/year, and sold apartment prices start from 415,000 AED.
6. Jumeirah Village Circle (JVC)
Due to its affordable pricing in the real estate market, Jumeirah Village Circle is one of the best freehold areas for real estate. Jumeirah Village Circle is known for its extensive gardens and is located in close proximity to Dubai Marina, JLT, Dubai Media City, and Dubai Internet City. 94% of the properties in this place are apartments, 2% villas and 2% townhouses. For rent, the prices of freehold property in Dubai for foreigners start from 34,997 AED/year, and for Sales start from 355,000 AED.
Benefits of Owning Freehold Property in Dubai
Owning freehold property in Dubai for foreigners is very beneficial. Here are some advantages it comes with:
1. Full Ownership Rights
The owners of freehold property have a full ownership right both on the real estate and the land.
2. Tax-Free Investment
Dubai doesn’t have any property taxes or annual capital gains which makes it an attractive place for foreign investors.
3. High Rental Income
In 2023, Dubai experienced over 44 million visitors. The growing tourism sector makes this place an appealing investment destination for professionals who seek to rent their real estate and gain high returns.
5. Golden Visa
Buying a freehold property that’s valued at least AED 2 million will open doors to a long-term residency. If you meet the eligibility criteria, you can apply for the Golden Visa, which is specifically designed for professionals, investors, entrepreneurs, and talented people. It grants you 10-year residency, and by the end, you can apply for UAE citizenship.
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The Process of Buying Freehold Property in Dubai
As an investor, after understanding what is freehold property in Dubai, you need to follow several steps to ensure your purchase process goes smoothly.
- Research and select a property. This step is especially easy nowadays when you can ask for expert advice.
- Verify the developer of the property. Make sure it’s registered in DLD and meets the legal requirements.
- Negotiate on a price and sign a Memorandum of Understanding (MOU) which will include all the terms, price, and timeline.
- If it’s a secondary sale, you need to acquire a No Objection Certificate (NOC), which will indicate that there are no outstanding fees or liabilities on the property.
- With the help of a bank, conduct a valuation process.
- Submit the required documents to the Dubai Land Department for property transfer and pay 4% of the property price as a DLD fee.
Legal Considerations for Freehold Property Ownership
In the process of learning how to buy freehold property in Dubai, you need to remember the importance of legal considerations.
- Foreign individuals or companies are eligible to buy freehold property in Dubai.
- Before buying a property you need to make sure that it’s listed in DLD.
- Property owners are required to pay annual service fees for real estate maintenance.
- During the ownership transfer, you need to pay 4% of the property price to DLD.
- There are no annual property taxes in Dubai.
How Mirabello Consultancy Can Help You Invest in Freehold Property
Dubai has a cost-effective living, which is among the best reasons why there are so many people who choose to relocate to Dubai. If you are planning to buy a freehold property and apply for a Golden Visa, the process can be a bit complicated but you can always avoid it. Many such programs will make changes to their requirements and it is important to be cognizant of current data. That’s where Mirabello Consultancy can help you. The guidance through the process from choosing the freehold property, ending with submitting the application is beneficial for anyone who wishes to live in Dubai. Simply reach out to our agents, and they’ll create a custom-made plan tailored specifically for you.
To sum it up, in this article we’ve talked about freehold properties, its benefits, listed the most common freehold areas in Dubai and shared insights about the purchase process.
With the guidance of experts like Mirabello Consultancy, your property buying process can be as effortless as possible, opening the doors to a prosperous future in Dubai.
FAQ
When you buy a freehold property in UAE, you have ownership rights not only on the property but also in the area that the property is located in. Compared to this option, with a leasehold, you do not have ownership of the land.
Yes, foreigners such as non-resident investors or expats can buy freehold property in Dubai.
First of all, you need to make sure that you match the eligibility criteria. Afterward, you need to apply for the Golden Visa program and make an investment of at least AED 2 million in a property located in the Freezone area.
The main costs associated with buying freehold property in Dubai are the amount of investment (at least AED 2 million), registration fee (4% of the property), maintenance fees, and agent fees.
