If you planning to buy properties in Dubai, it is very important that you thoroughly access the real estate market here before confirming on anything. Familiarize yourself with the different types of real estate ownership available to UAE nationals and expats in Dubai. You can also contact experienced brokers who are always there to guide you through the process with all range of information of property market.
Let’s have a quick check on the types of properties that Dubai had to offer to the buyers based on their visa, investment, age, and such other factors
Types of Properties in Dubai
When it comes to buying a residential property, as an expat you have primarily three property types. A different style of home or land is associated with each of these properties within Dubai.
Freehold properties are the most commonly sought properties by an expat who are interested in investing in Dubai as they have access to rent, sell and inherit these properties if required. When you buy freehold villas and townhouses in Dubai, you receive ownership of the land too.
In this category, the investor enjoys the full ownership of property in perpetuity, with minimal paperwork, in addition to non-requirement of consent from the state. You can purchase a freehold property from a government-approved real estate developer or through real estate brokers (contact us for the service)
In UAE, commonhold properties generally refer to freehold apartments. When you purchase a commonhold property such as condominiums, apartments, and non-residential units in a building, you’re just buying the unit and hence granted a title deed and absolute ownership of the particular unit but not the land that the apartment building is built on.
Purchasing a commonhold property provides you the individual right for buying, selling, or renting a property for the purpose of inheritance. These buildings are usually owned by a real estate or property developers.
Usufruct Properties, in the easiest terms means a lease for long-term investment. The occupant of the property does not have the right to amend or change a usufruct property in any way. If ownership rights are restricted, expats can opt for these alternative options like Usufruct property and Musataha.
The length of the lease for usufruct property in the UAE can range from 10 years to 99 years for residential properties and up to 50 years for commercial units. Usufruct properties can also be inherited.
Non-freehold properties in Dubai are properties exclusively for locals and GCC nationals. Properties in these neighborhoods in Dubai are not open to foreign investments.
However, in recent few years, the government has allocated some projects within a few non-freehold areas as freeholds.