Freehold and Leasehold property in Dubai
UAE is home to numerous expatriates, this facilitates the need for an opportunity for these expats to purchase permanent homes in the country. In Dubai expatriates can purchase houses under leasehold or as freehold.
Sometimes the term ‘leasehold’ area was used to describe a place in Dubai where only GCC nationals could buy, whereas ‘freehold’ was considered to be ex-pats and GCC areas.
The reality is a tiny more complex than ‘GCC vs non-GCC area’ though. When you buy property under leasehold in Dubai, you are actually buying the leasehold rights which may be renewable at the end of 99 years. In contrast, when you buy a freehold property, you buy the asset itself, in perpetuity. In the first case the leasehold contract is your asset while in the second case the property is your asset.
Until 2002, the UAE property laws allowed to expatriates from the non GCC countries only to rent property or own one on a 99-years leasehold basis, as approved by the federal law. In 2002, His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, issued a decree allowing foreigners to buy property on freehold ownership. The decree set a new trend which revolutionized the region’s real estate sector and sparked a boom in Dubai’s residential property market.
The new system in Dubai allows people of all nationalities to own freehold property. Additional laws were implemented to protect the right home owners on multi-storey complexes, with the formations of owners associations.
The success of Dubai freehold property has recently been realized by residents and everyone’s dream is to own a freehold property in Dubai. The creation of freehold property laws that allow expatriates to purchase properties within certain developments has been a primary source of economic growth in the Emirate.
There are many freehold areas in Dubai. To claim full ownership of a property the buyer needs to register it with the Land Department.
A foreigner cannot however own property in non-designated areas. A person could own a property in the UAE and choose not to reside in the property; you do not need to be a resident to buy freehold property.
Mirdif Tulip is the best example of the advantages of owning freehold. The development is located in Mirdif, and because everything surrounding it is either leasehold or GCC exclusive property, the unique nature of project makes it attractive.
PAYMENT PLAN for Mirdif Tulip
10% at Booking
10% after 1 month (October 2014)
10% after 2 months (December 2014)
10% after 2 months (February 2015)
10% after 2 months (April 2015)
15% after 2 months (June 2015)
35% on completion (July 2015)