Dubai is known for its larger than life image. Whether it is the infrastructure to that of increasing development it has been a hub of tourism. Over the years, it has also turned into a potential platform for investment considering the innumerable opportunity it lays out. Whether it is the law, rentals, costing everything perfectly fits the affordability of buyers.
A destination for eventual real estate boom
Dubai in the UAE holds on to be one of the popular places for investment. While earlier people were reluctant to invest in properties in the Middle East considering there were a lot of laws that were stipulated for ownership by foreign nationals to buy a property. This had kept many repelled from exploring the path of possibilities in investing in real estate.
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Buying property in Dubai foreigners
However, this eventually took a new turn in the year 2001, when the Dubai government brought up modification in rules that allowed all nationalities to have a 99-year lease of property in Dubai in certain areas. Later in May 2002, the government brought yet more changes in the law issuing a decree of allowing non-GCG nationals with freehold ownership. With this, they were allowed to buy, sell and lease or rent property in Dubai in designated freehold zones spread across the city.
Types of buying a property in Dubai
This probable move was to attract more people to invest in the real estate of Dubai. With the ease in permission and no hindrance to legal issues made the process of venturing into the real estate of UAE.
There are two types of real estate ownership for expats to buy property in Dubai. These include Freehold property ownership and Leasehold property ownership. So let’s explore it in detail:
Freehold Property versus Leasehold Property
Freehold property as the name suggests that allows buyers to hold complete ownership of the property in Dubai. Herein they hold the absolute ownership of Dubai. This includes the structure and land. Moreover, the buyer holds complete leeway to owners to upgrade and make any kind of changes in the property along with having the right to sell as well as lease it later on.
On the other hand, a Leasehold property is completely different from that of a freehold property. However, it is not completely different from freehold but connected to it. Leasehold is the type of property wherein one can lease the property from a freeholder for 99 years. In simple words, one can buy the right to occupancy and live in the country for a definite period of time as mentioned in the contract. Here the leaser doesn’t own the property but at the end of the contract period, the ownership reverts back to the owner.
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Can foreigners buy property in Dubai
Conclusion
Buying a property in Dubai is not a difficult task as that of yesteryear. With rules softened and laws modified it makes it a viable option for future investment. This has made it easy for expats and foreigners to buy property in Dubai either as a freehold owner or lease it for a definite period of time.