Top freehold zones in Dubai for investment
Dubai offers unique investment opportunities that are hard to match in the global real estate market. High-quality housing with a developed infrastructure, a wide range of five-star hotel service, steadily rising prices and demand and a yield of 5–8% per annum attracts investors from all over the world. And if earlier potential buyers were stopped by strict rules for property ownership for foreigners, with the advent of freehold zones in 2002, the situation changed radically. Today, the emirate has over 60 Freehold Zones and the list continues to grow.
In this post, we will look at the list of freehold zones in Dubai, where you can profitably purchase buy-to-live and buy-to-let villas and apartments.
- What are freehold zones in Dubai?
- Freehold zones for buying apartments in Dubai
- Freehold areas for buying apartments and villas in Dubai
- Freehold zones for buying villas in Dubai
- Is there a complete list of freehold zones in Dubai?
Freehold zones are designated areas of Dubai where foreigners can purchase real estate with the right of full ownership. Residential and commercial real estate purchased in these areas can be disposed of at your discretion. It means that you can rent, resell, renovate, inherit it, etc. There are no restrictions on citizenship, so this format is very popular among foreign investors and expats who come to Dubai.
Among the main advantages of freehold property are:
- Such real estate remains in the ownership of the owner and their heirs without time limits – as long as they wish it.
- Owners of freehold properties can use, sell or rent the property as they want.
- Owners of real estate in special freehold zones are entitled to a 3-year resident visa with the possibility of extension if the value of the property in Dubai is at least AED 750,000 ($204,000) and 10-year – at least AED 2 million ($544,500) in any emirate.
- A wide range of properties that meet different preferences and budgets in the best areas of Dubai with developed infrastructure.
Downtown Dubai is the cultural and financial hub of the emirate with many attractions and popular spots – from the legendary Burj Khalifa skyscraper, the Dubai Opera and dancing fountains to the Dubai Mall, the largest shopping mall in the country with a variety of shops and boutiques of world brands.
The community is characterized by vertical development – this is an area of high-rise towers, offices and business centers, which is perfect for those who prefer vibrant city life. A dense tourist flow provides year-round high demand for real estate and, as a result, a good ROI – about 6% per year for studios for long-term rent. The status of the community makes it an excellent option for short-term rentals, which can bring up to 11-13% per annum.
The average cost of apartments starts from AED 933,000 ($254,000) for a studio.
This is one of the best areas to buy freehold property with maximum return on investment. Although Dubai Studio City is better known as a free zone for media companies, it also includes residential buildings with quality infrastructure, green parks and swimming pools. The rental yield here reaches 10.9% per annum, which makes the area especially attractive to investors. The apartments are offered in mid-rise and high-rise buildings with a pleasant family atmosphere. Dubai Studio City is a pet-friendly community with good schools and medical clinics, supermarkets and restaurants.
You can buy a studio in Dubai Studio City for only AED 340,000 ($92,500).
Dubai Marina is the most famous community of Dubai on the coast of the Persian Gulf. This prestigious and popular area with dazzling skyscrapers, white sand beaches, numerous entertainment venues, bars, restaurants and marina has become one of the symbols of luxury property in Dubai. Here you can find comfortable studios, spacious apartments and penthouses, as well as villas.
The average ROI for studios reaches 6.4% per annum while for 5-bedroom villas it can exceed 9.6%. Prices for apartments start from AED 670,000 ($182,500), for villas – from AED 3.1 million ($844,000).
A large modern mixed development area with a large park, the world’s largest artificial lagoon and over 4 km2 of freehold residential real estate at affordable prices. Here you can find ultra-modern apartments, villas, townhouses and mansions with classic and futuristic design. The area is perfect for families with children. There are several prestigious schools with a good rating. In addition to popular entertainment venues, there is a center for equestrian sports and falconry.
You can buy a studio at a price of AED 715,000 ($194,500), a villa – from AED 1 million ($272,500). ROIs for these properties can be up to 5.5% and 4.4% respectively.