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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SOBHA ELWOOD: NATURAL ELEGANCE & SOPHISTICATION

SOBHA ELWOOD: A SANCTUARY OF NATURAL ELEGANCE AND SOPHISTICATION

GOVERNMENT FEES:

Sobha Elwood – DLD Fees: Expect a 4% Dubai Land Department (DLD) fee on the purchase price, along with an administrative charge based on property type (apartments/offices: AED 580, plots: AED 430, off-plan projects: AED 40). Additionally, property registration fees apply, with properties under AED 500,000 incurring a AED 2,000 charge plus 5% VAT, while those above AED 500,000 are subject to a AED 4,000 charge plus 5% VAT.

PROPERTY REGISTRATION CHARGES:

Sobha Elwood – Property Registration Charges: Expect a 4% Dubai Land Department (DLD) fee on the purchase price, along with an administrative charge based on property type (apartments/offices: AED 580, plots: AED 430, off-plan projects: AED 40). Additionally, property registration fees apply, with properties under AED 500,000 incurring a AED 2,000 charge plus 5% VAT, while those above AED 500,000 are subject to a AED 4,000 charge plus 5% VAT.

MORTGAGE REGISTRATION FEES (IF APPLICABLE):

When financing a property purchase at Sobha Elwood, buyers are required to pay a mortgage registration fee to the Dubai Land Department (DLD). This fee is calculated as 0.25% of the loan amount, plus an additional AED 290 administrative charge. For example, if the loan amount is AED 1,000,000, the mortgage registration fee would be AED 2,500 (0.25% of 1,000,000) plus AED 290, totaling AED 2,790. These fees are standard across Dubai and apply to all financed property transactions.

REGISTRATION DEADLINE:

Remember, all property acquisitions in Dubai must be registered with the Dubai Land Department (DLD Dubai) in Deira within 60 days of the deal. Failing to do so renders the purchase invalid. The 4% DLD Dubai fee is ideally split between buyer and seller, but often the buyer covers it entirely. Buyers are also responsible for the Property Registration Fee.

Discover the Canvas of Nature

Sobha Elwood is a haven where nature’s beauty and human ingenuity come together seamlessly. Imagine walking through tree-lined trails, surrounded by over 10,000 thriving trees, as the purest air fills your lungs. This community celebrates the simplicity of life with sprawling green spaces and thoughtfully designed homes that integrate with the natural environment.

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*Source: John Mason International Movers Website

OCEAN TOWER: YOUR COASTAL OASIS OF ELEGANCE

OCEAN TOWER: YOUR COASTAL OASIS OF ELEGANCE

GOVERNMENT FEES:

Ocean Tower by Al Ansari – DLD Fees: Expect a 4% fee on the purchase price, along with an administrative charge that varies depending on the property type (apartments/offices: AED 580, plots: AED 430, off-plan projects: AED 40).

PROPERTY REGISTRATION CHARGES:

Ocean Tower by Al Ansari – Property Registration Charges: Expect a 4% Dubai Land Department (DLD) fee on the purchase price, along with an administrative charge that varies based on property type (apartments/offices: AED 580, plots: AED 430, off-plan projects: AED 40). Additionally, property registration charges depend on the property value, with properties under AED 500,000 incurring a AED 2,000 fee plus 5% VAT, while those above AED 500,000 are subject to a AED 4,000 fee plus 5% VAT.

MORTGAGE REGISTRATION FEES (IF APPLICABLE):

When financing a property purchase at Ocean Tower by Al Ansari, buyers are required to pay a mortgage registration fee to the Dubai Land Department (DLD). This fee is calculated as 0.25% of the loan amount, plus an additional AED 290 administrative charge. For example, if the loan amount is AED 1,000,000, the mortgage registration fee would be AED 2,500 (0.25% of 1,000,000) plus AED 290, totaling AED 2,790. These fees are standard across Dubai and are applicable to all financed property

REGISTRATION DEADLINE:

Remember, all property acquisitions in Dubai must be registered with the Dubai Land Department (DLD Dubai) in Deira within 60 days of the deal. Failing to do so renders the purchase invalid. The 4% DLD Dubai fee is ideally split between buyer and seller, but often the buyer covers it entirely. Buyers are also responsible for the Property Registration Fee.

A Vibrant Community Haven

Beyond mere passageways, the corridors of Ocean Tower are designed to be vibrant communal spaces, where neighbours become friends and stories are shared. These elegant hallways are the arteries of a living, breathing community, fostering a deep sense of belonging and connection.

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Golden visa guide
Are you dreaming of sun-soaked beaches, a vibrant lifestyle, a secure economy and lucrative investment opportunities? Look no further than Dubai!
Download Brochure
Is Dubai Calling You? UK Enquiries Up 420%! *

Are you dreaming of sun-soaked beaches, a vibrant lifestyle, a secure economy and lucrative investment opportunities? Look no further than Dubai!

Birmingham-Event-August
Ready to Unlock Your Dubai Property Investment Potential?

Connect with a Footprint Real Estate expert today
for a free Zoom consultation!

*Source: John Mason International Movers Website
Dubai property show in Manchester

THINGS TO KNOW BEFORE BUYING PROPERTY IN DUBAI

Dubai property show in Manchester

THINGS TO KNOW BEFORE BUYING PROPERTY IN DUBAI!

GOVERNMENT FEES:

Dubai Land Department (DLD) Fees: Expect a 4% fee on the purchase price, along with an administrative charge that varies depending on the property type (flats/offices: AED 580, plots: AED 430, pre-construction projects: AED 40).

PROPERTY REGISTRATION CHARGES:

These fees depend on the property value. Properties under AED 500,000 incur an AED 2,000 charge with 5% VAT, while those above AED 500,000 face an AED 4,000 charge with 5% VAT.

MORTGAGE REGISTRATION FEES (IF APPLICABLE):

Financing your purchase through a bank? You’ll need to pay an additional 0.25% of the loan amount plus AED 290 to the DLD for mortgage registration.

REGISTRATION DEADLINE:

Remember, all property acquisitions in Dubai must be registered with the Dubai Land Department (DLD Dubai) in Deira within 60 days of the deal. Failing to do so renders the purchase invalid. The 4% DLD Dubai fee is ideally split between buyer and seller, but often the buyer covers it entirely. Buyers are also responsible for the Property Registration Fee.

FREE E-BOOK

Golden visa guide
Are you dreaming of sun-soaked beaches, a vibrant lifestyle, a secure economy and lucrative investment opportunities? Look no further than Dubai!
Download Brochure
Is Dubai Calling You? UK Enquiries Up 420%! *

Are you dreaming of sun-soaked beaches, a vibrant lifestyle, a secure economy and lucrative investment opportunities? Look no further than Dubai!

Birmingham-Event-August
Ready to Unlock Your Dubai Property Investment Potential?

Connect with a Footprint Real Estate expert today
for a free Zoom consultation!

*Source: John Mason International Movers Website
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The Dubai property market is booming, and Brits are leading the charge. John Mason International Movers has seen a staggering 420%* increase in enquiries from Brits seeking to relocate to the UAE in the last five years. It’s no surprise!

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