Difference between leasehold and freehold in Dubai
When it comes to buying property in Dubai, you’ll encounter two main terms: freehold and leasehold. These represent different ways of owning a home, each with its own set of rules and implications.
Freehold
Ownership: If you buy a freehold property, you own both the building and the land it’s on. It’s like having your own little kingdom—you have complete control!
Duration: With freehold ownership, there’s no time limit. You can hold onto your property for as long as you like. Whether you want to pass it down through generations or just keep it for yourself, the choice is yours.
Rights: As a freehold owner, you have the freedom to sell, rent out, or renovate your property as you see fit. Just keep in mind that you’ll still need to follow local regulations, but the level of control you have is much greater.
Locations: Freehold properties are available in certain areas of Dubai, specifically designated for expatriates. This makes it a popular choice for many who want to invest in their own piece of this vibrant city.
Leasehold
Ownership: In a leasehold arrangement, you own the property itself, but the land it sits on is owned by someone else—usually a developer or the government. It’s like having a home in a neighborhood where you don’t own the lot it’s built on.
Duration: Leasehold agreements are typically for a fixed period, ranging from 30 to 99 years. It’s important to keep track of this timeframe, as it determines how long you can enjoy your property.
Rights: While you can rent out or sell your leasehold property during the lease term, there are specific conditions you must follow according to the lease agreement. This means you have some flexibility, but with a few more constraints than freehold ownership.
Renewal: When the lease term ends, the property will revert to the landowner unless you negotiate a renewal. This can be an important consideration if you’re thinking long-term about your investment.