What is a Leasehold Property in Dubai?
Leasehold properties are acquired through a lease agreement with the property owner for a fixed duration (which may be 99 years or less). In such cases, buyers do not have ownership rights and are not allowed to make alterations, repairs, or modifications to the property without obtaining permission from the owner.
Best Freehold areas in Dubai
Here’s a list of some of the top freehold areas in Dubai:
When thinking about freehold zones, Business Bay is one of the first districts that come to mind. It offers various apartments for purchase using both traditional money and cryptocurrency. The community consists of residential towers and commercial complexes.
Dubailand is a freehold zone that is experiencing rapid growth and has numerous off-plan projects in progress. Several well-known developers are building freehold apartments and villas in the area. Dubailand is also set to feature theme parks, recreational spaces, commercial shops, and more.
Downtown Dubai is famous for its iconic landmarks like the Burj Khalifa and the Dubai Mall. It’s a trendy community with high-end apartments for sale, located in close proximity to essential infrastructure and tourist attractions. This is the perfect place to experience the luxurious metropolitan lifestyle.
Located on Sheikh Zayed Road in Downtown Dubai, Barsha Heights is a renowned freehold zone in the city. It offers roomy offices, mid-range hotels, and residential apartments.
International Financial Center (DIFC)
The DIFC, which is short for the Dubai International Financial Center, is a high-end mixed-use community situated close to the city centre. It is home to various tall residential buildings offering apartments for sale and is a major corporate and financial centre in the Middle East.
Dubai Marina is a well-known area renowned for its stunning views and artistic scenery. It is a fashionable and popular destination that includes beaches, a picturesque water canal, numerous restaurants, cafes, and shopping malls.
Jumeirah Beach Residence
Jumeirah Beach Residence, or JBR, is a development comprising of 40 high-rise towers and six clusters of residential and commercial properties.
Jumeirah Lake Towers
Jumeirah Lake Towers (JLT) is located around four artificial lakes, with a total of 26 clusters, each named alphabetically from A to Z. It is a highly desirable location for real estate investors due to its diverse range of stylish apartments across 79 towers.
Al Barari is a wealthy and private community spread over 18 million square feet. It is home to tailor-made villas and apartments, located in beautiful gardens and beside tranquil lakes.
Al Furjan is a gated community located next to Discovery Gardens in Dubai, and it offers freehold villas and apartments. The properties in Al Furjan have convenient access to major roads such as Sheikh Zayed Road and Sheikh Mohammed Bin Zayed Road. Check out Zazen Gardens if you’re looking for modern & luxurious properties in Al Furjan.
Best Non-freehold areas in Dubai
Although the government has granted freehold status to certain projects in non-freehold areas over the past few years, these areas are still generally considered non-freehold areas in Dubai.
Umm Suqeim is a wealthy Dubai neighbourhood, which mainly comprises villas and is not a freehold area. Emirati investors seeking to purchase a villa in Umm Suqeim will find that the sales prices begin at AED 1.3 million for 3-bedroom villas and go as high as AED 38 million for 6-bedroom villas.
Al Barsha is a residential area that was established in the early stages of the development of what is now known as New Dubai. It is situated near Sheikh Zayed Road and has convenient access to Al Khail Road, making it a convenient location.
Mirdif is a community in Dubai where entire families have lived for generations, from young children to grandparents. One of the distinguishing features of Mirdif is its diverse collection of villas, each built by individual owners. The villas in Mirdif are known for their spaciousness, both indoors and in their private gardens. The community has a mix of locals, Arabs, westerners, and Asians, and has been popular with ex-pats since the 1990s, with many long-term renters in the area.
While Al Warqaa might not be well-known to newcomers in Dubai, it is a familiar neighbourhood to long-time residents. Al Warqaa is known for its affordable and spacious properties that primarily house local, Arab and Asian ex-pats.
Al Satwa is known for its cultural diversity and one of the main advantages of living there is the availability of affordable rents. The buildings in the area are mostly low-rise and offer a variety of apartments, ranging from studio flats to 1, 2, and 3-bedroom apartments.
This is the main difference between freehold and leasehold properties, and each type has its own advantages and disadvantages. It is essential for buyers to evaluate these factors carefully before deciding on which type of property to invest in.
By doing so, they can choose a property that they can be proud of and that will provide them with benefits and perks in Dubai.
Frequently Asked Questions(FAQS)
Is it possible to change a property held under lease to one that is held under freehold?
Converting a leasehold property to a freehold property is feasible, although it requires a significant investment of both time and money. Nonetheless, it can be done.
How does Freehold property differ from Leasehold property?
Purchasing a freehold property grants full ownership of the property and the land it occupies. You have the freedom to sell, rent or occupy the property at your discretion, and you can pass it down to your descendants. Conversely, when acquiring a leasehold property, you only have the property rights for a limited duration, typically no longer than 99 years. Additionally, you don’t own the land, and most major property rights remain with the landowner.
How does a Free zone differ from a Freehold?
Free zones are exclusive business zones that do not contain residential properties. They are an attractive option for foreign companies looking to establish themselves in Dubai, as they offer tax exemptions. Free zones in Dubai are designed to encourage foreign investment, and business owners who set up in these areas enjoy 100% ownership of their companies.
In contrast, freehold areas are places where non-GCC nationals can own properties. If you purchase a property in a freehold area, you acquire full ownership of the housing unit and land. This allows you to sell, lease, or occupy the property as you see fit.
How to extend leasehold property in Dubai after expiration?
To extend a leasehold property in Dubai after it has expired, the process can vary depending on the lease agreement. However, here are some general steps that can be followed:
- Review the lease agreement
- Contact the landlord
- Negotiate new terms
- Create a new lease agreement
- Register the new lease agreement
What are the steps involved in changing a leasehold property to a freehold property?
By completing the necessary paperwork, it is possible to transform a leasehold property into a freehold property.