Dubai is a beautiful and well-developed city that offers lavish living facilities to residents. It’s one of the most peaceful cities in the world where people can live happily and without any security threat. Over the years, the marvelous progress of Dubai has grabbed the attention of foreigners especially Asians and Europeans who come here for jobs and business. Dubai offers several property investment plans for expats including commonhold properties, usufruct properties, and freehold properties as listed on luxury property real estate Dubai. The last option is the best option for foreigners if they want to invest in Dubai.
What is Freehold Property in Dubai?
Real estate experts recommend freehold property in Dubai for foreigners due to the peace of mind and prospects if offers. The liberty of use and sell has made it the most sought after property type in Dubai. Usually, it’s associated to with undeveloped land parcel, homes, and apartments. Once you buy it, you can sell it whenever you want to do and earn big capital gains.
You must know that freehold property can’t be brought on mortgage finance in Dubai. Indeed, this method gives a big resilience to real estate market in Dubai and developers never ask for the deposit unless the unit is sold. A few years ago, investors were confused about the rights they get on property after buying freehold property which later cleared by crown Prince by announcing 100% ownership to foreign buyers.
Approved Developers in Dubai
When an expat buys a freehold property in Dubai, he or she can enjoy the full right of property ownership. However, it’s necessary to buy it from a genuine real estate agent approved by Dubai government. Otherwise, the buyer can face several issues and become a prey of fraudulent. Government approved developers perform all paper work by themselves and you don’t have to worry about the credibility of the property or its document. Here are the five recommended and approved developers working in Dubai.
- Emaar Developers
- Meraas Developers
- KM Properties LLC
- Al Fajar Properties
- Zabeel Investors
There are different lucrative places in Dubai where you can buy freehold property, but newly constructed areas ideal as they are located around natural resorts and available at good prices. Downtown Dubai and Al Barari are greenish areas of Dubai and known for their nature friendly specification. Bujh Khalfa and Palm Jumeirah are two other marvelous locations hard to ignore.
Step by Step Guidance to Buy Freehold Property
Property buying process isn’t complex in Dubai. It’s simple, well-defined, and easy to follow. All you just need to follow the step by step guide.
- Evaluate you needs and determine the type of property you want to buy i.e. plot of land, villa, studio, or commercial space.
- Do your own search about the areas to make a comparison among different properties and their sizes.
- Meet a real estate agent and inform him about your plan, tell him your needs, and discuss the valuable investment opportunities.
- To buy a freehold property in Dubai, you must have a steady salary and legal permission to live in Dubai.
- Now choose a property that meets your requirements.
- Pay your deposit.
- Take mortgage loan from a financial institute.
- Transfer deeds.
- In the last step, pay land registry tax.
To get loan from the bank, you must have important documents including passport, visas, salary certificate, and bank statements. Registration fees and mortgage fee cont. are AED 2000 and 0.5% of loan respectively. Moreover, the buyer has to pay estate agency fee that is up to 2% of purchase fee. Valuation fee varies between AED 2,500 and AED 3, 500 while down payment is 25% of the property cost.