Co-ownership of property in Dubai is a popular investment plan for several buyers or investors. It allows more than one owner to share the financial burden and risks of owning a property.
Co-ownership also has some financial implications that need to be seen before entering into such types of agreement but it also has benefits. Now let us see what to do for co-ownership of property in Dubai and why it attracts investors.
People from India, Russia, and Europe are very much interested in properties that are located in the prime location of Dubai. The growth of Dubai’s property market after the COVID period showed that this city can stand difficult situations and the market will remain stable than other cities in the world.
There is Joint tenancy and tenancy in common which are the main facilities available in Dubai. In Joint Tenancy of co-ownership, every owner of a property has an equal share and if one of them passes away or steps down then their share automatically passes to the other living co-owners. But in Tenancy in Common, each owner has a certain percentage of share in the bought property and if an owner passes away then their share can be passed on to their heirs or beneficiaries.
The Dubai government also see to the co-ownership of properties and makes rules accordingly. It means that the government also looks into the disputes in this market. First, it is required for the registration of Any co-ownership agreement to be Registered with the Dubai Land Department (DLD). Then there is the Division of Rights where each party may have separate rights over their respective portions of the property.
There is a need for Management of Co-Owned Property and for this, The DLD introduced the Jointly Owned Property Declaration, which says the terms of ownership, management responsibilities, and usage of common areas. At last for the Selling Co-Owned Property, the co-owners have to sell their share separately, and the new owner will take the position of the last owner's place in the co-ownership agreement.
The profit sharing is also according to the percentage of ownership of the property. The government has also made new rules for the transparency and convenience of the buyers. From 2010 this co-ownership of properties started to become popular slowly by slowly and by the start of 2020 it had become one of the requirements for the people who are looking to own a luxurious property in a city like Dubai.
The price of properties is continuously increasing and buying ready-to-move properties is not so cheap to get. Looking into this some professionals are suggesting that it is good to fractionally own a property to ease the burden of full payment of a large amount of money. The fear regarding the loan or mortgage also lessens for the group of buyers of the same property.
Co-ownership of property in Dubai offers several benefits, including shared costs where more owners can share their money to purchase a more expensive property. The Investment profits in co-ownership can also provide a higher return on investment because of the facility to sell their part of the share separately.
Dubai is a hub of luxurious houses where locals and foreigners buy properties or invest in real estate. The demand for properties is not slowing down and so is the pricing of these properties. Looking into this some companies working in the field of real estate are now providing a choice for co-ownership for a single property.
While co-ownership offers several benefits, there is something that a buyer should also look into like the liability for loans because co-owners are jointly and hugely liable for all requirements which include utility payments, maintenance fees, taxes, and mortgages. Sometimes there can be disagreements between the co-owners because of the difference in opinions on the usage or sale of the property.
There can be inheritance issues among the co-owners who may have different heirs or beneficiaries. The developers are working on several new projects and off-plan properties where some of the builders are providing options for co-ownership with the help of some third party agents. But such options are not in large numbers.
Some companies are now providing co-ownership of properties in Dubai which has some complicated rules but the professionals are there to help them. The benefits of co-ownership are the sharing of risk and payment burden. But a buyer should know about the rules and restrictions involved in this type of ownership. It is good to take guidance from a good broker or executive who is working in the property market of Dubai for a better experience.
