If you have been eyeing investing in Dubai’s real estate market, then you must have come across the buzz phrase “freehold property.” You may already know that investing in freehold property in Dubai is the key to unlocking unmatched returns in the real estate market. But what exactly is freehold property, and where are the freehold property areas in Dubai?

Freehold property in Dubai refers to property developed in specifically designated areas that allow non-Gulf Cooperation Council (GCC) nationals to own property. These designated areas are referred to as free zones. Free zones in Dubai are important to foreigners looking to invest in Dubai — before the passing of Article 4 Law No 7 of 2006 Concerning the Land Registration in the Emirate of Dubai, only nationals and resident visa holders of GCC countries (UAE, Kuwait, Saudi Arabia, Bahrain, Qatar, and Oman) could own property in Dubai legally.

Today, expatriates and foreign companies can invest in freehold property in Dubai and be guaranteed full ownership by registering their rights to the Dubai Land Department (DLD). Additionally, if the value of the freehold property is at least AED 750,000 ($204,000), you are entitled to a three-year resident visa with the possibility of an extension. You get a ten-year resident visa if the freehold property is valued at not less than AED 2 million ($544,500).

The real estate Dubai scene is characterized by affordable property that is serviced by excellent infrastructure and provides a gateway to the impressive Dubai luxury lifestyle. So, which are the best areas in Dubai to buy real estate as a foreign investor?

1. Business Bay

Located on the banks of the Dubai Canal and near Downtown Dubai, the Business Bay is a top favorite freehold property area for investors. Comprising impressive high-rise buildings that house international companies, residential buildings units, luxury hotels, retail stores, and much more, this 60-million-square-foot property is at its prime for investments.

You can find studio apartments for sale from as low as AED 868,000, with spacious one-bedroom apartments starting at AED 1.3M and two-bedroom units going from AED 2.2M. The area has a limited but luxurious stock of four- and five-bedroom apartments and penthouses that can be purchased for revenue generation by reselling, renting, or leasing. The ROI for the cheapest freehold apartment studios is as high as 6.7% in the Business Bay area.

2. Downtown Dubai

Downtown Dubai is home to some of Dubai’s iconic landmarks, from the breathtaking Burj Khalifa skyscraper to Dubai’s biggest mall, the Dubai Mall. Downtown Dubai is the ideal freehold property for investors looking to invest in the most luxurious apartments in Dubai that attract high-profile and vibrant metropolitan lovers.

To purchase an apartment in Downtown Dubai, expect to part with an average of AED 1.3M for a studio, AED 1.8M for a one-bedroom, and AED 3.4M for a two-bedroom apartment. The inventory of luxury apartments in Downtown Dubai is extensive, making it a favorite for luxury freehold properties in Dubai investors. As an investor, you can look forward to about 11-13% ROI per annum on your investment in short-term rentals.

3. Dubai Studio City

This freehold property area is majorly known for the heavy presence of media broadcasting companies and establishments of production houses. However, Dubai Studio City also has some hidden residential gems. Additionally, the area has several schools, medical clinics, supermarkets, restaurants, swimming pools, and green parks and is pet-friendly, making it ideal for family setups.

The residential apartments in Dubai Studio City are housed in mid-rise and high-rise buildings. The asking price for studios on sale averages AED 350,000, while the one-bedroom average is AED 530,000. You will pay about AED 750,000 for a two-bedroom apartment here. Beyond its affordable portfolio of apartments for sale, the rental yield in Dubai Studio City can go as high as 10.9% per annum. This makes this zone of freehold property in Dubai one of the best regarding maximum return on investment.

4. The Greens

The Green is the ultimate family-friendly freehold property in Dubai prime for investment. The location consists of its own lake and about 40 low-rise residential apartment buildings with access to playgrounds, swimming pools, walking paths for pedestrians and pets, and recreational facilities such as swimming pools.

This family-friendly community provides a calm and serene living location with apartments that generate an ROI as high as 10.2% per annum, which makes the property extremely profitable. Investing in a studio apartment will cost you an average of AED 590,000, while a one-bedroom apartment goes for AED 862,000 on average, and a two-bedroom has an asking price of about AED 1.4M.

Benefits of Investing in Free Zones

Our list of the best areas to invest in freehold property in Dubai shows that the real estate market in Dubai is unmatched globally. When you invest in properties located in free zones, you get the following perks:

•  High return on investment as the Dubai real estate market, which continues to defy the odds and moves at an upward trajectory despite global real estate market trends.
•  Eligibility for renewable UAE residence visas for yourself and direct relatives.
•  Full autonomy on decisions related to the property as well as the mode of revenue generation from the property, such as through sales, renting, or leasing.
•  Complete ownership of the property as well as its passing to heirs upon demise, even in the absence of a will that states so.

In Summary

Dubai’s real estate market is expanding exponentially, with more free zones added yearly. With over 60 free zones today and thousands of freehold properties available for investment, the range available has you spoiled for choice. Furthermore, as a foreigner, you may choose to invest and live outside the country or easily acquire a resident visa to stay in the country; the choice is yours.

The Dubai real estate market is thriving, and investing in the top four freehold property areas in Dubai is how you get yourself a piece of the pie.