Guide to Buying freehold property in Dubai

Foreign investors and expatriates can now secure full ownership of properties in prime Dubai freehold areas such as Sheikh Zayed Road and Al Jaddaf. This opportunity offers benefits like direct title deeds, long-term investment potential, high rental yields, and access to financing options such as bank mortgages and developer payment plans.

What Are Freehold Properties?
Freehold properties allow full ownership of both the property and the land it sits on. Owners can sell, rent, or transfer ownership without restrictions, making these properties attractive to both local and international buyers. By contrast, leasehold properties grant ownership of the property for a fixed term (up to 99 years) but not the land, with more restrictions on selling or renting.

Why Freehold Properties in Dubai Are Popular Among Foreign Investors

1. UAE Golden Visa: Purchasing property worth at least AED 2 million grants eligibility for a 10-year self-sponsored visa.
2. Complete Ownership: Foreigners enjoy full ownership rights, with the flexibility to sell, rent, or upgrade their property.
3. Long-Term Investment: Owners can retain properties indefinitely, benefitting from capital appreciation and passing ownership to future generations.
4. Other Visa Options: Investors with property worth AED 750,000 can secure a three-year visa, while AED 5 million properties offer a five-year visa.

Prime Freehold Locations in Dubai
Dubai offers a wide range of freehold areas catering to different budgets and lifestyles:

• Sheikh Zayed Road: A business hub with access to commercial and leisure areas.
• Al Jaddaf: A developing hotspot near Dubai Creek and the airport.
• Downtown Dubai: Luxury apartments near the Burj Khalifa and Dubai Mall.
• Dubai Marina and JBR: High-rise waterfront living with vibrant communities.
• Palm Jumeirah: Upscale oceanfront properties with luxury amenities.
• Dubai Hills and Arabian Ranches: Family-friendly villa communities.
• Damac Hills: Green, master-planned golf communities.

Financing Options for Freehold Properties
Dubai offers multiple financing methods, including:

• Conventional Bank Mortgages: Accessible to residents, expatriates, and non-residents with stable income and strong credit history.
• Developer Payment Plans: Flexible options allow payments in installments, including post-handover.
• Islamic Financing: Sharia-compliant, operating on a profit-sharing model instead of charging interest.

Step-by-Step Guide to Buying Freehold Property in Dubai

1. Understand Costs and Legal Considerations
   Buyers must budget for associated costs like registration fees, agent commissions, and VAT. Legal requirements include registering transactions with the Dubai Land Department (DLD).
2. Choose the Right Location and Property Type
   Research neighborhoods based on lifestyle needs, proximity to amenities, and future growth potential. Employing a registered real estate agent can provide valuable insights.
3. Work with Registered Brokers and Developers
   Ensure brokers are registered with the Real Estate Regulatory Agency (RERA). For off-plan properties, verify the developer’s registration with the DLD.
4. Complete the Buying Process
   • Draft an Initial Contract: Outline property details, price, and payment terms.
   • Sign the Memorandum of Understanding (MOU): Also known as Form F, this document finalizes the sale terms. Buyers provide a 10% security cheque.
   • Obtain a No Objection Certificate (NOC): This is issued by the developer to confirm no outstanding liabilities.
   • Transfer Ownership: Complete the process at the DLD with required documents and fees.

Fees and Costs

• Registration Fees: 4% of the property value plus AED 580.
• Title Deed Fee: AED 250.
• Agent’s Fee: 2% of the property value.
• NOC Fee: Varies by developer.

For off-plan properties, the process is quicker, requiring only identification documents and signing a Sales Purchase Agreement (SPA).