FREEHOLD VS. LEASEHOLD PROPERTY IN DUBAI

UNDERSTANDING THE DISTINCTION BETWEEN FREEHOLD AND LEASEHOLD PROPERTY OWNERSHIP IN DUBAI
FREEHOLD AND LEASEHOLD PROPERTY IN DUBAI
Dubai holds the distinction of being the first emirate in the UAE to grant foreigners and expatriates the right to buy property in Dubai for foreigners. This move commenced in 2001, when the Dubai government introduced leasehold property ownership for foreigners. Subsequently, in 2002, a decree allowing freehold property ownership in Dubai was enacted.
When evaluating the choice between leasehold and freehold property, it is essential to consider the distinctions between these two ownership models. Here’s a brief breakdown:
Leasehold Ownership:
Opting for a property in Dubai on a leasehold basis grants you property rights for a fixed term, which typically spans a maximum of 99 years. However, it’s important to note that you won’t have ownership of the land beneath the property; ultimate ownership of the land rests with the freeholder.
Freehold Ownership:
Those who acquire property on a freehold basis enjoy complete ownership of the property and the land it occupies. This means you have the freedom to sell, lease, or occupy the property at your discretion.
Now that you comprehend the differentiation between these two property ownership types in Dubai, let’s explore the advantages and disadvantages of each.
Leasehold Property Ownership in Dubai: Pros and Cons
Purchasing leasehold property essentially entails acquiring the right to occupy the property for a specified period, akin to a long-term lease. Generally, this lease period extends for 99 years, though exceptions exist. This form of property ownership in Dubai grants rights exclusively to the unit itself, not the land. At the end of the lease term, ownership of the property unit reverts to the freeholder.
Freehold Property Ownership in Dubai: Pros and Cons
With freehold property ownership, you gain absolute ownership of the property unit and the land it occupies, without any time restrictions. The Dubai Land Department (DLD) registers the freehold buyer as the ‘landowner’ and issues a title deed for the property. This freehold status continues perpetually and can be inherited by heirs, ensuring it remains within the family.
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