Leasehold

The most important features of the leasehold model are

• One Fixed term of the right of use, usually 99 years
• The possibility to Passing on or for sale of the right of use
• Clear regulations regarding the Maintenance obligations
• Often more favourable Entry-level prices compared to freehold properties

For Investors in Dubai Leasehold offers both opportunities and special considerations. The lower entry-level price makes this form of ownership particularly interesting for price-conscious investors. However, you should bear in mind that the value of a leasehold property can fall as the remaining term of the right of use decreases.

Important aspects when deciding in favour of a leasehold property:

• Financing: Banks can be more cautious when granting loans
• Value stability: The performance can be influenced by the remaining term
• Flexibility of use: Possible restrictions by the property owner
• Transferability: Clear legal regulations for resale

In Dubai, Leasehold is often used in up-and-coming neighbourhoods where dynamic development is expected. This can offer opportunities for value appreciation, even if the right of use is limited in time. For a well-founded investment decision, a careful examination of the contractual conditions and the development prospects of the location is recommended.