Dubai Property

In May 2002, Dubai Crown Prince General Sheikh Mohammed bin Rashid Al Maktoum issued a decree which allowed foreigners to buy property. This was the historic time when ‘Freehold’ property rights were created which would change the property investment climate in Dubai completely. It was the adoption of freehold tenure in general and foreign ownership in particular that set the stage for a real estate boom.

The economy was growing, Free trade zones appeared and the strong oil prices increased the regional economy. New mega projects were announced like the Dubai International Financial Centre (DIFC), Palm Jumeirah, Dubai Mall, Burj Khalifa and Dubai Multi Commodities Centre (DMCC).

By October 2005 the Dubai real estate market showed another sign of maturity when a major international bank, HSBC announced that it would begin offering local mortgages.

Presently, there are three type of properties one can invest in:

  1. Freehold properties

    The property is registered in your name, and an heir may inherit it upon your death. New freehold properties must be purchased from government approved real estate developers.
  2. Usufruct properties

    A usufruct property means that you buy a long-term lease. The length of the lease ranges from ten years to 99 years for residential properties and 50 years for corporate properties.
  3. Commonhold properties

    Apartments are typically sold as common hold properties. You and other building residents must pay fees for maintaining common areas, As with freehold properties, you can sell or inherit your commonhold apartment as you like.

 

 

 

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