Dubai has been recognized as the safest place in the world to invest your worthy bucks. It goes without saying that it can be a life-changing experience to own an apartment or studio in Dubai. Although the terms are quite feasible and the process can go rather swiftly as compared to other countries, but there are some factors to really ponder before buying a studio in Dubai.
Easy and global access to the internet has allowed people to know about investment opportunities and the best ways to gain immense profits. But as the process of buying a studio in Dubai can be a big commitment and a huge change, it is necessary to pay heed to the authentic information only. The following article caters to all your frequently asked questions related to buying a studio in Dubai.
What Is the Difference Between Freehold and Leasehold Areas?
As far as the topic of buying property in Dubai is concerned the majority of people get confused between freehold and leasehold areas. Especially the people who are new in Dubai find trouble in differentiating between Freehold and leasehold areas. Therefore, it is essential to address in detail the main information.
- Freehold Area: Years ago, it was nearly impossible for foreigners to buy property including apartments, studios, villas, etc. in Dubai. However, laws were re-evaluated in the 2000s, and resultantly the Dubai real estate Laws were changed.
This allowed people from over the world to buy land in Dubai on easy terms. Thus, the Freehold areas are specified for foreign people to buy real estate quickly. This has revolutionized Dubai giving endless investment and residential opportunities for people around the world.
- Leasehold Areas: These areas allow people to lease a piece of land for a certain period. The period can range from 10 years to over 99 years. Hence you cannot potentially buy real estate but can lease an area. You can get back the ownership once the lease has ended.
DOES LOCATION MATTER WHILE BUYING A STUDIO OR APARTMENT IN DUBAI?
One of the most frequently considered questions is the location of the studio. It can be a game-changer when you opt for the right location that best fits your requirements and most wanted demands. The property in Dubai can be categorized into two following types:
- Studios or Land for Personal Use: It has been a common perception over the years that land in Dubai is far away from the reach of an ordinary man. But the idea and circumstances have been changed in recent years, making it possible for people to become landowners. The possible opportunity to get your own home in Dubai has made it a second home for billions of people around the world.
If you want to own an apartment or studio of your own for personal use, try considering a more local area having the basic facilities. This can be helpful for you and any other acquaintance living with you.
- Property For Investment Purposes: High capitalization of investment, greater rental yield, easy terms, and no tax bonuses have made Dubai a real estate hub. The main purpose of investors is to gain surplus profit and attractive perks on each investment which is all provided adequately by the Dubai real estate market. You can consult a professional property advisor to guide you about high rental yield places for rent purposes. You can choose famous points in Dubai to invest in real estate and, in return, earn tremendous profits and paybacks.
Are The Real Estate Laws Same for Locals and Expats?
According to law, a foreign national is exempted from getting a nationality of Dubai easily so many people are curious about the law related to buying and selling of land.
- Local Investors: Luckily, there is no restriction enforced on local real estate buyers. They can buy land or apartment studios anywhere without the exemption of Freehold and leasehold lands.
- Expats: According to the law, ex-pats can buy property in Dubai in areas called freehold land. They can lease an area for a certain period and get the complete ownership back at the end of the decided period.
NOTE: The local real estate investors are allowed to invest in any area they want either it is freehold or leasehold property.
How Important Is It to Inquire About the Apartment’s History?
Buying a studio or an apartment requires complete research that provides you with the history of that place. This can be a great way of preventing fraudulent deals and houses built on illegal lands. It takes a huge amount of your hard-earned money to buy a studio in Dubai. Therefore, it is inevitable to know the complete history of the place you plan to own. Here is a list of few things that can help you with research:
- Be completely aware of the Developer and ask about their other projects
- Make sure your building is made by professional teams and has been maintained well
- Inquire about the starting and finishing dates of the building
- Always ask for licenses and other necessary documents to check for the authenticity
- Hire a reputed brokerage company
- Be mindful of the service charges and make sure you pay no unnecessary property taxes
- Go through the previous rental charts
- If you want to rent a place, check for the trending places.
- Ask people or locals about any hidden charges of the place
- You can take reviews from other clients of your agent to make sure you are not getting scammed
Conclusion
It can be a huge menace for real estate buyers if they do not consider these measures carefully. There is enough information provided to help your process go as smoothly as possible. For further assistance, you can always contact a reputed property advisor, preferably a local of Dubai. Make sure you always trust the right sources and make satisfactory research before getting your hands on a studio in Dubai.
The confusion between freehold and leasehold areas. The mention of this confusion, particularly for newcomers in Dubai, sets the stage for a need to delve deeper into the distinctions between these property types.