Real Estate in UAE - Frequently Asked Questions
Freehold, leasehold - what does it mean?
According to the law issued in march 2006 foreiners have rights to buy real estate in certain areas in Dubai on the falawing conditions:
Freehold: getting the ownership of the property and the land it assigned to. The residence is provided to the investor.
Leasehold: 99 years leasing. The residence is not provided. Because of that leasehold properties are cheaper.
Primary and secondary markets.
Primary market: properties from the developer.
According the law nobody has rights to add comission to the price. Real estate companies are payed by developer.
You buy it directly from the developer's office or through real estate company - price is always same.
Secondary market: reselling properties.
In this case:
price = orig. pr + premium + transfer + comiss.
where
orig. pr: developer's price
premium: owner's profit
transfer: 1.5 - 2% from orig. price payable to developer.
comiss: comission if any,normally up to 2% from price.
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