Fast progress rate of city infrastructure, services and business sectors have dragged foreign investors to make huge investment in Dubai. Government and developers are working together to build travel, tourism and service industries to make its economy less dependent on petrodollars earned from oil export. Moreover, government also developed freezone areas in specific parts of Dubai to facilitate investors and businessmen to invest and open their outlets in Dubai. This allows investors and organizations to operate their business outlets freely and don’t restrict them to any taxes. Additionally, freezone areas are not bound to follow Islamic law of Sharia. Sharia is a major Islamic law that regulates all kind of banking, economic and business contracts in Islamic countries. Soon after the implementation of freehold property law, foreign investors also find good investment opportunities to make investment in off plan and ready now property projects. Dubai real estate market allows investors to double their profits by renting selling their freehold Dubai properties. As Dubai is the most populous emirate of UAE, one can easily observe the high demand of residential as well as commercial properties to accommodate people and their businesses. Creation of freezone and implementation of freehold property laws has created different types of Dubai properties, which include:
• Freehold Dubai Property
• Leasehold Dubai Property
• Commonhold Dubai Property
Below is the brief description of title types for Dubai properties.
Freehold Dubai Property
Freehold property title is allotted to specific Dubai properties that are available for both local and foreign real estate investors. Properties under this title provide free ownership to buyers. Freehold property title is only available for properties available in selected areas specified by Dubai Government.
Leasehold Dubai Property
Leasehold Dubai Property grants long-term lease of land or building. Usually Dubai properties are lease for maximum 99 years. Typically lease ranges for minimum duration of 25 years and maximum duration of 99 years. A freehold property owner can lease his/her properties. Buyers who are purchasing leasehold Dubai property will pay cost of lease with actual property price. Moreover, tenant or property owner of leasehold properties will have to pay annual service charges for property maintenance.
Commonhold Dubai Property
A commonhold Dubai property title is commonly used for residential properties like apartments. Dubai property buyers who are purchasing an apartment in Dubai will possess ownership of the flat whereas ownership of the whole apartment building will be share with other apartment owners of the building. This type of property ownership is termed as Commonhold Association.
Citizens of Dubai, UAE and other Gulf countries are eligible to rent or purchase Dubai properties. Besides this, real estate investors from other countries like Europe, Russia, Asia and America can easily identify the property type to make profitable investment.
