Is freehold right for you?
Buying real estate in UAE, particularly in Dubai, is an important and huge decision to make. It involves a lot of money and a fatal mistake can lead to many years of regret. For this reason, getting as much information as possible is crucial.
Among the terms you might encounter as you dig deeper into Dubai’s real estate market is “freehold.” You might wonder what freehold means and whether it would be a good investment for you or not.
Before you make any decision, here some advice. Understanding what freehold means would give you more ideas on how it will benefit you.
What is a freehold?
Freehold property in Dubai is a property that is owned completely by the owner. If a property is a freehold property, it means that the owner owns both the building and land.
Freehold property is different from a leasehold property primarily in terms of ownership. In a leasehold property, the land is leased for a fixed amount of time. In the UAE, the maximum amount of lease term is 99 years.
When a property is leasehold, th owner only owns the building, but not the land. After the lease contract expires, the owner of the land would take ownership of whatever is built on the land. However, both parties can decide to extend the lease contract or not.
The differences between freehold and leasehold are mentioned so you will have a better idea of what a freehold property is.
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