Dubai has a thriving property market in which various types of property ownership are offered including freehold properties and leasehold properties. Appreciating the distinction between these two forms of ownership can enable buyers to make sound choices when they invest in Dubai real estate.
What is a freehold property in Dubai?
Dubai’s freehold properties confer on their owners an absolute right of domain over both land and building, which means that they have full rights of disposal, leasing, renting, or even redeveloping the premises as desired. Free hold properties are usually more expensive than lease hold ones and are available to both UAE nationals, and foreigners.
What are benefits of purchasing a freehold property in Dubai
There are several benefits associated with owning a freehold property in Dubai such as long term ownership, possibilities for modification as well as high resale values among others. Besides this, freedom to offer the apartment for tenancy without any restrictions is also accorded to those who own these types of housing units.
What is a lease hold property in Dubai?
On the other hand, Lease Hold Properties refers to those houses whose buyers do not enjoy full rights over the land on which they sit but rather those rights still belong to their landlord at least until after 30 years or maybe up to 99 years.Exclusively categorized amongst other options for cheaper investments.
Owning a lease hold property
When buying through it people don’t have to pay for all costs upfront hence can be less costly compared with owning outrightly.The opportunity for rental income is another reason why buyers may want to consider purchasing lease hold plots since money comes into your pocket while you sleep.
Things To Consider When Choosing Between Free Hold And Lease Hold Property In Dubai
These factors include; future investment goals; budgetary estimates; and personal preferences towards how one wants himself to be referred to in terms of ownership. For instance one might decide upon free hold property if he is interested in owning it for long, full control over the asset or lease hold property incase looking at the investment that goes with rental income.
Dubai’s both freehold and leasehold properties offer advantages and considerations for buyers. Appreciating the distinction between these two forms of ownership can enable buyers to make sound choices when they invest in Dubai real estate.