Knowing the difference between freehold and leasehold ownership is crucial if you intend to purchase real estate in Dubai.
Freehold ownership: what is it?
Both the property and the ground on which it is located are yours forever. Foreigners can mostly purchase freehold homes in specific locations such as:
Marina in Dubai
Downtown Dubai
Towers at Jumeirah Lakes
Jumeirah Palm
Leasehold ownership: what is it?
You do not own the land, but you do own the property for a set period of time, typically 30 to 99 years. Ownership returns to the landowner at the end of the lease period.
Areas under leasehold include:
Deira
Al Karama
Metha Oud
Benefits and Drawbacks
Type AdvantagesDrawbacks
The FreeholdComplete ownership and flexibility in resellingA little more expensive up front
LeaseholdReduced entrance costsRestricted authority over land
The final judgment
Freehold is the best option for long-term control and investment. If the conditions are right, leasehold may be an option for reasonably priced homeownership.
Do you need assistance making a decision? Speak with one of our real estate consultants right now.
