What Are Freehold Zones In Dubai?
May 06, 2016 |
Shanu
Indians are the biggest property investors in Dubai. In 2014, over a quarter of the Non-Arab property investments were made by Indians, show government data. While major real estate developers in Dubai are doing the best they can to lure in Indian investors, Indian developers are keen on attracting Non-Resident Indians (NRIs) in Dubai and other cities to invest in property in India at the same time.
Also Read: Why NRIs Are High On Dubai Real Estate
Among other things, freehold properties in Dubai offer many unique advantages. Let us look at what freehold properties are, and how Indian investors can benefit by investing in them.
- As long as you comply with the rules and regulations of the land, you have absolute control over freehold properties. In 2007, the Dubai government announced a list of the zones, where you may own freehold properties for the first time. Apart from UAE nationals, people from Gulf Cooperation Council (GCC) and Non-GCC countries can also own freehold properties in these zones. In fact, foreigners have been investing in property in Dubai in large numbers since 2002, when the Dubai government opened up its property markets.
Also Read: Why HNIs Are Among Top Investors In Dubai Real Estate
- If you buy property in a freehold zone, you will be able to legally register the property in your name, with full freehold rights. Earlier, the right to legally register property in their own name was reserved for UAE and GCC nationals. The registration of property is often a less time-consuming process because companies can register the property in the name of their clients in a very short period of time if all documents are in order.
- In fact, it is the decision of the Dubai government to allow people of all nationalities to own freehold property that led to a property boom in Dubai. The world's tallest building, Burj Khalifa, for example, is in Dubai. Even though the economic crisis had a huge impact on the property boom, such liberal norms have changed the skyline of Dubai.
- If you wish to own a property in areas which are not designated as freehold zones, you may have to opt for a long lease. Such properties, however, cannot be registered at the land department. It is important to note that before 2002, properties in Dubai were only leased to foreign nationals. They were not allowed to buy them.
- If you wish to buy a property in a freehold zone in Dubai, the property will be registered in your name after real estate developers have issued a no-objection letter, stating that you have made all the required payments. Even though there is some ambiguity on the ownership of property titles in the case of high-rise buildings and multiple occupancy buildings, the new norms have urged many Indians to invest in property in Dubai. Dubai Academic City, Dubai Maritime City, and Dubai International Financial Centre are among the freehold zones in Dubai. The greatest advantage of owning a property in a freehold zone is that you will have 100 per cent ownership, even in the absence of a local sponsor. Moreover, various restrictions that apply to firms in Dubai do not apply to firms in freehold zones.