We understand the types of ownership, features of the purchase process and the benefits of investing in land in the UAE
Since 2016, foreign citizens have been allowed to purchase land plots in Dubai, which has significantly increased interest in the real estate market of the emirate. Buying land in Dubai can be used for both personal construction and investment purposes, including resale or lease.
Types of land ownership in Dubai
• Freehold (full ownership):
This type of ownership gives the owner full rights to the land and objects built on it without a time limit. Owners can sell, rent, donate or bequeath property. Popular areas: Dubai Marina, Palm Jumeirah, Jumeirah Lakes Towers and Business Bay.
• Leasehold (long-term lease):
Land lease for up to 99 years with the possibility of extension. The owners have limited rights and cannot pass the plot by inheritance.
• Musataha:
Rent with the right to build for up to 50 years, during which the owner is considered the owner of all buildings.
• Usefruit:
The right to use real estate for up to 99 years with the possibility of extension.
The process of buying land in Dubai
Foreign buyers can purchase land plots from both the state and private developers. Transactions are controlled by the Dubai Land Department (DLD), and the cost of title registration is 4% of the price of the plot.
Features of the process:
• Payment is possible in one time, in installments or through mortgage lending.
• Banks provide mortgages for up to 25 years.
• The purchase process is transparent and includes registration in DLD.
Available areas and prices
Dubai offers a wide range of land plots for different purposes:
• A plot for the construction of a villa in Dubai Hills Estate costs about $900,000.
• In Mohammed bin Rashid City — about $1,000,000 per 466 square metres.
• Large plots, for example, in Dubai Marina (4,645 square metres), will cost $38,000,000.
Conclusion
Buying land in Dubai opens up wide opportunities for foreign investors, providing flexible payment terms, a transparent registration process and prospects for obtaining a high return on real estate investments. However, before purchasing, it is recommended to carefully study all the features and restrictions, as well as contact professional consultants for up-to-date information and support at all stages of the transaction.