Are Dubailand condo hotels freeholds or leaseholds?
A. As of August 2006 all condo hotels located within
Dubailand have been declared freehold estates. This
includes the City of Arabia (Windsor and Arabian Crowne)
and Dubai Sports City (Kensington Royale and Red Residence).
And while everyone fully expected Dubailand projects
to be declared freehold estates, it is nice to now have
legal and binding confirmation of the property status.
me to explain the difference between Dubai freehold
estates and Dubai leasehold estates just for clarification.
Originally, the condo hotels mentioned above were offered
as leasehold estates. This meant that you owned the
unit for 99 years, and you had the option to renew this
lease, for what amounted to pocket change, for another
99 years. However, the land on which the condo hotel
sat was owned by someone else.
at the end of a land lease, the owner of the land owns
everything built on it, including your purchased unit.
Now, the likelihood is that sometime in the next 198
years, you or your family members would choose to resell
your unit, and this was never going to become an issue
the new laws in Dubai give you 100% ownership of your
unit from now on as long as you own it or if you choose
to sell it. So now, you can enjoy your unit well into
your 200's without ever worrying about the leasehold
time clock running out and potentially affecting any
value of your condo hotel investment.
above question was submitted via e-mail by a visitor
The answer was prepared by Joel Greene, a licensed real
estate broker, who specializes in condo hotels and the
Dubai real estate market.