[vc_section][vc_row][vc_column][vc_column_text]With Abu Dhabi property sales topping AED 71.5 Billion in 2021, and that of Dubai being around AED 151 billion, it’s important for you to know the different types found in the UAE and what each of the them entail.
In the UAE foreigners can buy properties either on a lease or own intermediately. Below are the following property types in the UAE:
- Freehold Properties
- Usufruct Properties
- Common-hold properties
- Musataha
While Locals (Emiratis) can own any property type of property , Expatriates on the other hand can’t purchase property in some areas. Below is a detailed explanation of each property type.
Property Types in the UAE:
a) Freehold / Ownership: Expatriates are granted ownership deeds of the property for a period of 99 years. They can freely depose of the property (Apartments or Villas) they buy. But however, they need to buy the property from a government-approved Real Estate such as Aldar, Imkan, Emaar, Damac.
b) Usufruct: Here the owner buys the property on a Lease from anywhere from 50 to 99 years, but however they aren’t able to change or destroy the property.
c) Musataha: The property owner can own the residential unit for a period of 50 years, renewable . However unlike Usufruct, they can construct, modify, destroy the property.
d) Long-Lease / Common hold properties: Given for an initial period not lasting more than 25 years, but however you and the other residents must pay maintenance fees for maintaining common areas usually collected by the building owner.
Each Emirate has its own laws governing the ownership of properties.
A) Abu Dhabi: In Abu Dhabi, Expats can own properties in Abu Dhabi in the following locations:
Yas Island, Masdar City, Saadiyat Island, Al Marina Island, Reem Island, Al Reef, Mariya, Al Raha Beach, Lulu Island, Sayh Al Sedairah, Jubail Island.
Apart from that the person must either be a UAE National or the person owns a public listed company (PLC) with non-nationals not exceeding 49% or the a decision is given by the Crown Prince of Abu Dhabi.
B) Dubai: Foreign ownership is permitted only by Freehold, either by Usufruct or Leasehold rights not exceeding 99 years. Title deeds are issues by the Land Department of Dubai and there’s no age limit as to who can buy.
C) Sharjah: Expats can only own a property by Usufruct not exceeding 100 years after registering for Usufruct rights with the Sharjah Real Estate Registration Department.
If you are interested in owning your own property feel free to contact us.
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