What is Freehold Property
Freehold property is property that non-citizen (expat) residents are allowed to own indefinitely. It may sound a little daunting but the terminology and laws are required considering the unique nature of the UAE as an ideal destination for investment and living for millions of people from across the globe. The UAE’s local population (Emiratis) only comprise approximately 1 million of the total 9 million residents in the UAE. The means that UAE law pertaining to business and property ownership has had to be streamlined for foreigners.
Free hold property is the UAE government’s innovative product to satisfy the huge international demand to invest in the UAE.
Prior to 2002, expats were only allowed to rent homes or buy Lease-hold property in the UAE. Lease-hold property is different from freehold in a few key ways. Though it ensured resident expats certain rights and securities living long-term in their home, it wasn’t actual ownership and it wasn’t a viable investment opportunity. As is typical with lease-hold elsewhere, it was a 99-year agreement, after which the rights of the property reverted back to the true owner.
Since the launch of freehold properties in the UAE back in 2002, the country’s real-estate sector has shot to the global stage with a reputation for opulent estates, excellent family communities, safe and diverse living, and near perfect weather conditions for half the year. Celebrities and elite from every nation of the world own vacation homes in the UAE for its tax-free living and unparalleled luxury. The UAE is hot in the summer months, but to help residents live fulfilling lives, real-estate developers reinvented the shopping mall, making it a cool destination for the whole family.
Each of the seven Emirates offers non-Emiratis the opportunity to own property. Certain Emirates even provide additional benefits like residence visas if the investment meets their requirements. This is usually in the range of 600k to 1 Million USD in investments.
Freehold property allows anyone to own a piece of the UAE, the most important trading hub in the world.
The UAE is an oasis in the desert. The country’s visionary leadership have turned rolling desert dunes into the success story of the century. The seven Emirates of the UAE have become an expansive metropolitan area where millions of expats feel safe, welcome, and at home. The government continues to invest heavily into making its citizens happier, despite already being the happiest in the entire Middle East.
The location of the UAE is key to its long-term growth and viability as an investment destination. The nation is situated at the center of trade, oil, and air travel routes; literally connecting the east and west. It promotes a tolerant and respectful society that accommodates many religions and cultures, while alienating none. There are churches, mosques, temples; bars and night-clubs; and parks for families.
Projections for global population growth and globalization put the UAE at the center of the most rapidly developing regions of the world, like Africa, the Indian subcontinent, and east Asia, where the global middle class is rising. The UAE has striven to attract multinational corporations where international staff can easily access the MENA regions and yet reside in a country that offers greater safety than nearly any other country on earth.
Conclusion: Should I buy freehold property in the UAE?
The UAE offers the best opportunities for long and short-term investments. The government continues to relax rules and regulations ahead of World Expo 2020 in order to further sweeten the deal for investors. At the center of nearly 4 billion global citizens, the UAE is the primary destination and getaway for the middle and upper classes of Africa and Asia, making it an investment opportunity like no other.