Initially foreigners are not allowed to make purchase deal to buy freehold properties in UAE and Dubai. But soon after announcement of freehold Dubai property law in 2002 professional real estate investors and foreigners started taking interest to invest in real estate market of UAE. State government invested huge money to build infrastructure of this city in order to make it less dependent on oil.
Evolution of Dubai Freehold Property Market
If you look behind evolutionary stage of freehold property market in Middle East, you come to know that freehold property market was started in 1998 just after the project launch of Dubai Marina. Even though, at that time there was no freehold property legislation existed in UAE. Only villas were available as leasehold asset for 99 years. After the legal approval of freehold property law in 2006, non-GCC nationals (GCC stands for Gulf Cooperation Council, comprising Saudi Arabia, Kuwait, the UAE, Oman, Bahrain and Qatar) are allowed to possess freehold properties. This law exclusively revolutionized Dubai property market. Real estate investors across the world started taking interest to make huge investments in existing and new construction projects.
Exact Meaning of Freehold property in Dubai
Dubai freehold properties are available for purchase for local and foreigner residents as well. People belong to any country across the globe are allowed to purchase and hold a freehold property forever unless they decide to resale it to anyone. Moreover, such owners are still allowed to pass their assets to any family member allowing them to enjoy sole ownership of the property. They are free to resale their houses any time and also allowed to rent out to third party. But investors can find some restrictions in certain specific projects. Such restrictions enforced owners to follow certain conditions that limit them to make alterations in their properties and force them to maintain their property to certain standard as these assets are located in private community developments. Buying apartment is different from buying a villa. Apartment purchase deal is legally listed as common hold asset deal. Because apartment is a part of project and as an owner you will have to follow certain conditions in case of renovation and modification as well renting out to third parties.
Is it possible to buy Freehold Properties in other Emirates of UAE?
Dubai is the first Emirate of UAE that allowed non-GCC residents to possess a freehold property in specific areas of Dubai. Other Emirates of UAE are also focusing to develop their own property laws. Recently Abu Dhabi (2005) and Ajman (2006) have announced freehold properties available in certain specific areas. Other states are also focusing to provide freehold ownership to expats and foreigners. Although, states are taking interest to develop freehold properties but still federal government of UAE didn’t announce any law on federal level. Several freehold residential projects also offer residency or relocation visa via purchase. Moreover, Government has announced a special type of residency visa to foreign people buying properties in this emirate. This kind of visa only allows foreigners to live in Dubai but it doesn’t allow them to work in Dubai.
Areas Offering Freehold Properties in Dubai
Dubai has become a popular choice among foreign investors and other non-GCC residents who are willing to purchase their second home in UAE. Due to its subtropical climate, cosmopolitan environment and worth seeing places, this city attracted holiday makers, tourists and travelers to spend their time. Developers started several mega construction projects in residential and commercial sectors to provide more residential and commercial properties to expats and foreign investors. City Government has published a list for areas offering freehold properties in Dubai. This list indicates that major freehold properties are available in areas like Jabel Ali, Palm Island, The world Island, Emirates Hill and Dubai Marina. If you consider specific property developments that offer free hold properties include the following projects.
- Arabian Ranches by Emaar Properties
- Burj Dubai Downtown Development Project
- Al Nakheel Proerties
- Golf Towers
- Apartment project Dubai Marina
Why Dubai offers Freehold Properties to Foreigners?
Dubai’s government have identified that it does not depend on oil to earn revenue for longer period of time. Geologists identified that these oil resources will not remain forever and it might be possible to expire by the year of 2012. That’s why government struggled hard to build this city as business and trade hub between Eastern and Western countries. And eventually with combined efforts of government and developers city has become successful to grow as financial hub of Middle East and diminished its dependability on oil. State government started focusing to improve service industries in various sectors including real estate industry. The city keeps on progressing and developing various travel and tourism places to attract visitors across the world. This city also becomes famous job seekers across the world and offers excellent job opportunities to expats. Huge number of foreigners is now considering Dubai to relocate to find better job and investment opportunities. These migrants and holiday makers need some place for their accommodation. Moreover, business persons and investors also need space to establish their business. In order to facilitate these expats and foreign investors, Government started offering freehold property ownership to these expats. Giving them right to purchase or resale freehold real estates in specific developments of the city. To further enhance the worth of this city among second home seekers government is also planning to offer resident visa to property buyers on asset purchase. This significant rise in property demand and massive development projects also attracted number of local and foreign real estate investors across the globe to make investment in Dubai property business, with aim to earn good profits. There are number of real estate consulting firms in Dubai that provide complete information about properties available for sale and rent. Better Homes LLC is one among the most reliable real estate consulting firms that work to educate its customers to choose best property that fulfill their needs.