By definition, the term Freehold Property means the property which is bought by the purchaser by paying an amount, and he receives the Ownership Rights of the property. He is not liable to pay annual lease charges. He also has the freedom to sell part or whole of the property.
Freehold Property in abundance in Dubai..
Investing in Freehold property is a decision which you can make after taking the rates, location etc. into consideration. And if the location is a place like Dubai, you have every reason of making such an investment because the growth prospects in Dubai are tremendous. Unlike leasehold property, with freehold property you are free to sell off the property, which means that with the increasing demand for the property, you can reap the best deal at the time of sale.
You can browse through the web pages of www.gsre.com and get yourself acquainted with the various freehold property deals available in Dubai. It is quite evident that builders and housing constructions are investing in building properties in Dubai, in order to maximize profits in future.
It would be ideal for you to think about the pros and cons (we know that you will not find any negative points at all!) and make this decision now. Firstly, it would be a great place to live, as the facilities and amenities are of high quality. Secondly, it is a safe decision, because it is only you who will benefit throughout the deal, whether you reside in Dubai or sell off the property when the prices in the market are soaring high! Think about it. It is seldom that you have both heads and tails of the coin in your favor!!
Buying Off Plan
Most purchasers choose to buy off–plan by paying a deposit and then by making structured payments through to completion based on a pre-determined construction plan.
Initial deposits and payment schedules typically fall in the range and increments of 10% to 20%. It is at the discretion of the developer how the payment plan is scheduled.
The benefit of buying off-plan is that re-sales command relatively high premiums therefore increasing any profit margin in the investment considerably due to leverage.
Who Can Buy?
Any investor, overseas or resident, can purchase in Dubai’s luxury property developments.
Home Financing
If you are looking for home financing options in Dubai, most developers offer finance packages. However, Amlak is certainly one of the best options. Amlak offers a wide range of products for investors to choose from. Amlak finances properties that are ready to move into, as well as those that are under construction. They will even pre-approve your loan before you start looking so that you will know exactly what your budget is.
Payment Terms
In general, a deposit representing 10% to 20% of the buying price is required at the contract-signing stage for all new development properties. This is followed by what are known as stage payments that are made at regular intervals through to completion based on a pre-determined construction schedule. Contact your GSRE Property Consultant for more information
Bank Accounts
Buyers do not need a local bank account to arrange for purchases. However, if required for client comfort, local bank accounts can easily be arranged through our partners in Dubai.
Appreciation
Property prices in Dubai have experienced considerable growth, and are forecast to remain this way for some time. This is evident when comparing current prices with those of 6 or 12 months ago. Like all investments, however, property prices can go down as well as up. Please speak to your GSRE Property Consultant for your specific information needs.
Purchase Times
Transactions normally take no longer than two weeks to complete through our one-stop shop service.
Government Tax
There are currently no government or capital gains taxes when purchasing a property in Dubai. In the near future, when the Dubai Lands Department registers title, buyers will be asked to pay a 1.5% tax based on the purchase price of the property. If they have a mortgage, they will pay 0.25% of the value of the loan
To Buy on the Secondary Market or the Resale Market:
If during the construction stage of a property a second party wishes to purchase the property from the owner then the process is straight forward.
The buyer pays the owner an agreed sum which includes those payments the owner has already made to the developer and any premium applied by the owner.
Exchange of contracts with the owner at developer’s principal office usually takes place within a two week period.
The developer will then charge a percentage of the original price of the property (typically around 2%) to reissue the PSA with a new name on it and update their title records. This must be done either in person or with the buyer's authorized representative. The whole process takes a matter of minutes.
Contract re-issued in buyers name - there is no legal representation for either party or any stamp duty implications.
The buyer will then continue to pay the remaining installments to the developer as laid out in the PSA.
Commission, typically 2 to 3% is paid to the agent.
Please note that the transfer fee is paid by the purchaser
What exactly is freehold in Dubai?
Purchasing a freehold property in Dubai now means that you own the property forever or until you decide to sell it. You are allowed to pass this property to your family for example, and they enjoy the same level of ownership as you do.
Most important for investors, your resale rights are guaranteed, as is your freedom to rent out your property to a third party, though some restrictions apply to individual developments.
You should note that although these are freehold properties, some conditions on their owners apply, because they are "private community" developments. These conditions will restrict what owners can do with their properties, and oblige them to maintain their properties to certain standards, according to the themes and quality of the communities.
When buying an apartment, the nature of ownership is different from that of a villa, because an apartment is a unit in a building. These are normally classed as "common hold". Sale agreements for apartments do, however, usually warrant effective full ownership of the unit, subject to restrictions applying to the building, such as renting out the unit, and making modifications.
Where can you buy freehold properties?
Most property developers in Dubai offer freehold, but so far most of the freehold developments have typically been limited to the extended Sheikh Zayed Road, Dubai Marina and West Jumeirah. However, exceptions to this include the Arabian Ranches and Emaar Towers in downtown Deira.
What about buying in other emirates?
So far, the UAE as a whole does not have laws regarding the sale of freehold property to non-GCC nationals. Each Emirate follows its own property laws, as Dubai has done. Recently Abu Dhabi announced the availability of freehold, limited to "surface rights" for non-GCC nationals in the Al Raha beach area, outside the main city limits. Similarly, Ras Al Khaimah in the north has created a similar development and acknowledged emirate-wide freehold status. The other emirates are expected to follow suit, but there have been no definitive announcements at the federal level yet.
Are property owners eligible for residence visas in the UAE?
Many developments give you the opportunity to gain a residency visa through purchase of completed units. Please speak to your GSRE Sales Consultant for your assistance with residency concerns.
Property Law
The freehold property market in Dubai really started in 1998 when the Dubai Marina project was launched. At that time there was no freehold property law, and villas were sold "leasehold", on 99 year leases. In 2002 a decree was issued by the Dubai government granting freehold rights to non-GCC nationals. This provided the impetus that has led to the size and dynamism of Dubai's property market today.
Dubai Residency
The Government has stated that a special category of residence visa will be granted to people buying 'foreigner's' properties. The visa will allow a purchaser to live, but not work in Dubai. The arrangements for granting, and the terms of the visa, are subject to individual approval. Please note that only the Government of the UAE can grant these visas, not the developer or estate agent.
