The Challenges That Come With Freehold Properties In Dubai

Securing a home under your own name is a notable ambition for countless individuals. This goal becomes reality for those who invest in freehold property in Dubai, marking a major personal accomplishment.

Alongside this exciting step comes a specific framework of obligations and practicalities that new owners must acknowledge and prepare for to protect their investment.

Service charges and hidden costs:

A primary consideration to buy freehold property in Dubai is the ongoing financial commitment beyond the purchase price. All properties within managed communities entail owners to pay annual service charges. These fees fund essential amenities like security, swimming pool maintenance, landscaping, and common area upkeep. These charges can be substantial and are subject to increase. Owners must budget for these recurring costs to avoid unexpected financial strain.

Maintenance responsibilities:

While the building’s exterior and common areas are managed by the homeowners’ association, the internal upkeep of the apartment or villa falls entirely on the owner. From air conditioning servicing and appliance repairs to fixing internal plumbing issues, the responsibility and cost for maintaining the private dwelling is a significant and continuous duty that involves attention and planning.

Managing owner associations:

Many freehold properties are governed by an owners’ association. Active participation in this body is often necessary to protect your investment and ensure the community is well-run. Decisions about major repairs, fund allocation, and community rules are made here. Disengagement can lead to dissatisfaction with how the property is managed, making involvement important for a harmonious living environment.

Legal framework and dispute resolution:

The legal system, while robust, operates differently from many Western countries. Having knowledge of real estate laws, registration processes, and the correct channels for resolving disputes whether with developers, tenants, or other owners is key. Routing these procedures involves either a good grasp of local regulations or the guidance of a legal professional, adding a layer of complexity to ownership.

Market fluctuations and liquidity:

The real estate market is vigorous and can experience periods of both rapid growth and correction. Property values are not guaranteed to always rise. Owners must be prepared for potential shifts in their asset’s value. Also, selling a property entails finding a buyer in a viable market, and the process can take time, meaning real estate is not a liquid asset.