Dubai has created an environment for international real estate investors to easily invest in real estate in Dubai. The number of freehold areas in Dubai, where international investors may freely purchase property with the rights to full ownership for unlimited time, is significant to this growth. Leasehold areas in Dubai have restrictions based on the length of time, whereas freehold areas in Dubai offer the ability to own the property and the land for unlimited time, providing investors with the assurance of the long term and flexibility.
Importance of Freehold Ownership for International Investors
When foreign investors initially look into purchasing property in freehold areas in Dubai, they are typically interested in learning about the location, potential of returns, and liquidation of the sale of the property. Communities in freehold areas in Dubai are varied, therefore determining which freehold areas in Dubai meet your investment goals will be critical. Therefore, some communities emphasize luxury and prestige, while others emphasize rental performance and cost.
Top Freehold Areas in Dubai to Consider
Downtown Dubai
The Downtown Dubai area is one of the most well known freehold areas in Dubai. It attracts the largest portion of the investor base focused on preserving capital. The majority of renters and owners of properties in this area enjoy a strong reputation globally. Due to the quality of its infrastructure, and the continuous tenant demand, the majority of apartments in this area are able to generate strong rental yields. As a result, many investors focusing on the resale of properties tend to purchase in freehold areas in Dubai such as Downtown Dubai, since there is always a constant flow of transactions occurring in this area regardless of fluctuations in the market.
Dubai Marina
Investors and residents alike have made Dubai Marina another very popular freehold area in Dubai. Residents of Dubai Marina enjoy a coastal lifestyle and the proximity to shopping centers, restaurants, etc. Furthermore, Dubai Marina is home to a large number of expats, who rent in the area, which leads to good yields for investors. Many investors looking to compare different freehold areas in Dubai, find that Marina tends to stand out due to the combination of its location, walkability, and consistent occupancy rates.
Palm Jumeirah
Many luxury-focused investors tend to look at Palm Jumeirah, when comparing different freehold areas in Dubai. Palm Jumeirah has beachfront villas and luxury apartments that target high net worth individuals. Unlike mid-market freehold areas in Dubai, Palm Jumeirah is not driven by volume, but rather by exclusivity. Palm Jumeirah is among the top premium freehold areas in Dubai, with entry prices being significantly higher than other freehold areas in Dubai, due to limited supply and a strong brand image.
Jumeirah Village Circle
For investors looking to maximize affordability and rental yields, Jumeirah Village Circle is likely one of the best options for freehold areas in Dubai. This community has a variety of housing types (apartments, townhouses, villas) that are priced more affordably than the more central locations in Dubai. First-time investors tend to look at JVC among the other freehold areas in Dubai, as the entry costs create a better opportunity for rental returns than the more expensive central districts.
Business Bay
In addition to attracting investors, Business Bay is also attracting professionals among the growing freehold areas in Dubai. This community has residential towers combined with commercial office space located near Downtown Dubai. Professionals that wish to have access to the city center at a lower price point than the more central districts tend to research this area when researching the freehold areas in Dubai. The Dubai Water Canal has also added to the attraction of the community’s lifestyle and has increased buyer interest over the last few years.
Legislative Environment of Freehold Areas in Dubai
It is essential to understand the legislative environment surrounding the freehold areas in Dubai. The Government of Dubai clearly outlines which districts are open to foreign ownership and upon completion of the property purchase, the Dubai Land Department registers the title deed confirming full ownership rights of the buyer. Over the past twenty years, this regulatory certainty has increased investor confidence in the freehold areas in Dubai.
Choosing the Best Freehold Area in Dubai
Before choosing one of the freehold areas in Dubai, determine your objectives. If your primary goal is to earn rental income, then look for freehold areas in Dubai with a high volume of tenants and consistent demand. On the other hand, if you desire to grow your wealth through capital appreciation, then look for established freehold areas in Dubai with a global reputation and stable infrastructure. When investing in a property in a freehold area in Dubai, smart investors compare the price per square meter, service fees, and previous transaction history before making a decision to purchase in any of the top freehold areas in Dubai.
Professional Advisory Services for Buying Full Ownership in Freehold Areas in Dubai
Keyspace Realty and Keyspace Dubai provide a data-based, analytical, and well-structured methodology to support the decision-making process of all Buyers when considering purchasing property in one of Dubai’s Freehold areas. We collect and analyze historical sales performance data, current rental market trends, past resale timelines, changes in prices over time, as well as other demographic and economic factors that may be relevant to each community. We do not simply rely on Seller Marketing Materials or Sales Brochures to complete its due diligence. Rather, we provide an analysis of real demand, liquidity, and comparable yield performance within each of the communities we evaluate so that each Buyer has access to accurate information to assist them in making informed decisions that are based upon objective data. Ultimately, by using this methodology, we assist Buyers who purchase a property in a Freehold area in Dubai to clearly understand their investment goals, develop a specific investment plan, and ultimately select a property that is consistent with their long-term wealth creation and financial performance objectives.
Frequently Asked Questions
What are freehold areas in Dubai?
Freehold areas in Dubai refer to those areas of Dubai where foreigners are allowed to buy property with full ownership rights of both the property and the land.
Can foreigners own property outright in Dubai?
Yes. In designated freehold areas in Dubai, foreigners may buy property with full ownership rights to the property and the land for unlimited periods of time.
What are the best freehold areas in Dubai for earning rental income?
Communities such as Dubai Marina and Jumeirah Village Circle often produce high rental yields due to the high demand for rentals.
Are freehold areas in Dubai suitable for long-term investments?
Yes. They are protected by the UAE’s laws, including the Dubai Real Estate Law, and the Dubai Land Department’s registration process, which increases investor confidence.
How do I compare and select from among various freehold areas in Dubai?
Compare your desired financial outcome, the duration of time you intend to hold onto the property, the level of demand for rentals, and the sale/lease activity in each freehold area in Dubai prior to deciding which community you would like to purchase a property in.
NOTE: Pictures used in the advertisement are for illustration purposes only.
