What’s the difference between Leasehold vs freehold Property?

The properties of Dubai offer a wide array of opportunities for locals and foreigners to invest, purchase, or rent in the city. It is become a hotspot for investors across the world. The real estate market in Dubai is very fast, it requires a deeper understanding. In the first place, you need to learn about the difference between leasehold property and freehold property in Dubai. People often have to choose between the two 

Let's understand about both types of property 

Freehold Property vs. Leasehold property differences on the following basis

• Definition: Freehold property allows you the ownership of both the property and the land on which the property is built. Whereas leasehold property allows you the ownership of the property unit only and not the land.

• Ownership after Expiry: In the case of freeholding property, the ownership still remains with the owner itself. There is no contract period. On the other hand lease of the leasehold property property needs to be renewed 

• Period of ownership: The time period of ownership is not applicable in freehold property. The property belongs to the owner after purchasing. Whereas, The ownership period of leasehold property typically involves 99 years or more.

• Rent: You do not need to pay rent to anyone as you are the owner of your property in case of a freehold property. Leasehold property, on the other hand, may demand rent from the owner as you are living on their land. 

• Transfer of property: The owner of freehold property can sell or buy the property. It is a straightforward process. In the case of leasehold property, transferring ownership could be challenging. 

Therefore, these were the major differences on which both properties could be classified. Apart from this, factors like mortgage loans, work flexibility, and cost of ownership also matter. One can definitely consider buying a property in Dubai as an investment.