Dubai is a busy metropolis with real estate developments surfacing throughout the city every now and then. The Emirate has witnessed a surge in the number of developers and investors exploring alternative property ownership options. One such property option is the commonhold properties.
Commonhold properties in Dubai are referred to as freehold apartments. Such properties allow multiple owners to share ownership of the apartment. It helps build a sense of community and shared responsibility among owners for better maintenance and property management.
Let’s find out all the details about commonhold properties in Dubai, their ownership rights and the areas with availability of such properties.
What is A Commonhold Property?
A commonhold property is where buyers can purchase the individual unit and not the whole apartment block or building. The buyer is not responsible for the service charges for the entire block’s upkeep. Therefore, one of the benefits of buying this property in Dubai is that all the other owners of the residential unit will share the maintenance and service charges.
Moreover, owners of commonhold properties in Dubai receive a title deed and the right to possession. It denotes that they are the property’s legitimate owners. They do not, however, own the land on which the structure is built upon.
Differences Between Commonhold and Freehold Properties
There is a slight difference between commonhold and freehold properties. Knowing the difference can help a buyer save time and money by choosing their ideal property type.
Commonhold Properties
Commonhold properties are where multiple owners share ownership and responsibility for common areas and facilities of a building or complex.
The owners do not own the land the structure is built upon. These are freehold apartment units where the buyer does not pay the service charges all on their own. Rather all unit buyers bear the charges evenly.
Freehold Properties
Freehold properties are those types of properties in the UAE where the buyer gets ownership of the structure as well as the land it is built upon. A freehold property is available for purchase in designated areas. Expats and foreign nationals can buy such properties. While the difference between freehold and leasehold properties is that the latter involves the buyer leasing the property from its legal owner for a 99 years period or less.
Additionally, a buyer is allowed to make structural alterations in case they own a freehold property, which is not permitted in the case of commonhold properties.
If you are willing to buy freehold property, go through these rules to buy property as an expat in Dubai first and learn about the process.
Additional Charges Paid By Commonhold Property Owners
Since a single owner does not own the commonhold properties in Dubai, the developer collects the service charges from all owners. The service charges index by DLD can easily calculate the service charges on Dubai’s property.
Commonhold property owner may pay the following charges:
- Maintenance charges
- Utility charges
- Improvement fees
- Managerial service charges
- Cooling and heating system service charges
Areas with Commonhold Properties in Dubai
Since commonhold properties are typically freehold apartments, they are available for purchase in the designated freehold areas.
There are many renowned areas in Dubai where you can easily find freehold apartments. These include:
- Business Bay,
- The Meadows,
- The Springs,
- Downtown Dubai,
- Jumeirah Village Circle,
- and Dubai Marina, among others.
That is all about commonhold properties in Dubai and the areas having such properties. However, if you are interested in other property types, you can find a plethora of properties for sale in Dubai.
Stay connected with dubizzle’s property blog for more information on various property types in the UAE.
