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In Dubai, United Arab Emirates, the impact of foreign direct investments has opened the doors for foreign investment in real estate properties. As the most populous emirate in the UAE, Dubai has positioned the economy and business climate as the regional business center through such innovative practices as freezone entities that are not subject to Sharia, the body of Islamic religious law. While Sharia traditionally governs all aspect of Islamic politics, economics, banking, business, contracts, and many personal issues, the establishments of freezones are recognized areas that are governed under separate rules and regulations of the freezone entities.
Through the freezone practice, you can get one of three types of titles for a property that depends on the location and type. You get either a freehold title, leasehold title, or commonhold title. The type of title is governed by «The Land Registration Law of the Emirate of Dubai» (Law No. 7/2006).
The freehold title is available in only select areas as determined by the ruler of Dubai. A freehold title is straightforward. You, as the buyer, are the free and clear owner of the building and the land.
A leasehold title is a long-term lease on the land; generally, the lease is 99 years, but ranges from 25 to 99 years. A leasehold title means you are leased the land that property is built upon from the freeholder of the land. Your purchase price includes the cost of the lease. Additionally, you may be required to pay an annual service charge which covers maintenance and upkeep.
A commonhold title is normally issued with apartments. You, as the owner of an apartment, own the flat. The ownership of the building is in common with the other apartment owners. This is generally referred to as a commonhold association.
All three types of titles — freehold, leasehold, and commonhold — are available to local citizens of Dubai, other Emirates and Golf Country Council (GCC) as well as other foreigners — Europeans, Russians, Asians, etc.
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Source by Ethan Blane