Types of Real esTaTe in Uae
Oil has been the main source of income in the UAE for decades together.
However, since of late there has been a shift of focus to other industries as a source of revenue and income.
Real Estate, among other industries is one such area of interest, deemed to be a key sector as a source of revenue in the future.
A little more than a decade ago, locals were allowed to buy, sell and transfer ownership of land across the UAE.
And recent changes in legal restrictions opened up avenues for foreign investment in freehold plots in investment areas across the Emirates.
These changes allowed expats to purchase freehold property.
However, only GCC nationals were allowed the right to the freehold title of their property.
Non-GCC expats had access to invest in property in two ways: Usufruct, and Musataha.
Usufruct allows expats to benefit from a property owned by a third party. Conditions restrict these owners from making any changes to the property. This type of ownership lasts for a period of 99 years and is common in the purchase of apartments.
Musataha allows the buyer to benefit from the land owned by a third party. They buyer gets ownership for 50 years, which can be extended by mutual agreement.
This is common in the purchase of villas and investment land.
The owner has the right to use the land for development, to sublet and to take a mortgage.
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