Commonhold Property in Dubai: Ownership Rights & Fees

In the realm of real estate ownership in Dubai, besides the widely known concepts of leasehold and freehold, there exists another option: commonhold property. Commonhold ownership primarily pertains to apartments for sale in Dubai. We’ll delve into what commonhold entails and how it differs from freehold ownership.

Understanding Commonhold

In Dubai’s real estate landscape, freehold ownership grants individuals full ownership rights over properties like apartments in areas such as Dubai Marina and Downtown Dubai. However, it’s important to note that with freehold apartments, while one receives a title deed for the unit, the ownership does not extend to the land beneath it. Conversely, freehold villas and townhouses include ownership of both the property and the land it sits on.

Therefore, apartments under freehold ownership are often referred to as commonhold properties in Dubai. Despite this distinction, commonhold owners enjoy the same rights as freehold owners. They possess the liberty to buy, rent, occupy, sell, or pass on commonhold apartments as inheritance without any time restrictions. Additionally, they may be eligible for a UAE residence visa.

Commonhold Property Fees

Since the land for commonhold properties in Dubai is not owned by any single entity, the responsibility for maintaining the building’s common areas, including cleaning, security, landscaping, and general upkeep, falls upon all owners. This collective maintenance is funded through service charges typically collected by the developer.

Additional Costs of Commonhold Property in Dubai

In addition to the property purchase price, commonhold property owners are obligated to pay recurring fees for the upkeep of the building’s common areas. These fees, known as service charges in Dubai, can vary based on factors such as location, developer, unit size, and property usage.

The commonhold property fees comprise various charges, including maintenance, improvement, utility services, management services, insurance, and chiller or district cooling fees. To provide transparency, the Dubai Land Department offers a ‘Service Charge Index’ on its official website, enabling commonhold property owners to access current service charges for their building and a breakdown of associated fees.

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Popular Areas with Commonhold Properties

Buyers seeking commonhold properties in Dubai can explore designated freehold areas. For apartments, popular areas include Arjan, Barsha Heights, Bluewaters Island, Business Bay, and Culture Village. Meanwhile, commonhold villas are available in areas such as Arabian Ranches, Emirates Hills, Jumeirah Island, and Jumeirah Park.

FAQs About Commonhold Properties

  • Can Expats Buy Property in Dubai?

Yes, expatriates can purchase property in Dubai. Areas like Al Furjan, Dubai Hills Estate, and Palm Jumeirah offer freehold residential land where expats can invest.

  • Is Commonhold Better Than Leasehold?

While commonhold or freehold ownership is preferred by many, leasehold properties also have their merits. Leasehold properties typically come with a 99-year lease and limited liability over repairs. To make an informed decision, refer to our guide comparing leasehold and freehold ownership in Dubai.

  • What Does Freehold Property Mean in Dubai?

Freehold property grants complete ownership rights over a flat or villa, as well as the land on which the property stands.

Commonhold property ownership in Dubai offers buyers the advantages of freehold rights over apartments at a comparatively lower price than freehold villas. Whether you’re considering investing in Dubai’s real estate market or weighing the pros and cons of property ownership, understanding commonhold properties is crucial.

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