In Qatar, there are some limitations for expats and non-Qatarians when it comes to buying or investing in real estate. Foreigners and expats in Qatar can buy property only in freehold and leasehold areas. Also, both of these areas have their own specifications for owning a property.
Therefore, it is crucial for you to have complete knowledge about property ownership in freehold versus leasehold regions. So, let’s explore everything about freehold vs leasehold property in Qatar!
Freehold vs Leasehold Property Ownership
The ownership of freehold versus leasehold property differs due to the duration of the permit and rights granted. Scroll down and learn more about the difference between freehold and leasehold property ownership!
Freehold Property Ownership
Freehold property is a piece of land that can be owned indefinitely, including the built structure. Pearl-Qatar, a luxurious man-made island in Qatar, is the first area where foreign nationals can own the freehold.
For long-term residence and investment, buying a freehold property is a preferred choice for expats in Qatar. Property ownership of freehold real estate also allows you to continue living in the home even after the death of the property owner.
Also, you have complete autonomy in making alterations, installing, and renovating your property. Although freehold property is more expensive than leasehold property, you don’t need to pay ground rent or other fees.
Leasehold Property Ownership
A leasehold purchase requires the original sponsor to transfer sponsorship to the property, acting as a guarantee. Overseas buyers require a Qatari visa before purchasing. They purchase a 99-year renewable leasehold from the property owner, which can be used for:
- Commercial purposes
- Residence
- Lease transfer
- Rent out
Leasehold properties in Qatar offer commercial, rental, or private use at lower costs than freehold properties. Also, they can generate higher profits if located in desirable areas with amenities.
With a 99-year contract, obtaining a home loan on leasehold properties is easier. Other that that, the owner does not bear maintenance costs. Additionally, desirable locations and amenities can enhance the property’s value.
Freehold vs Leasehold Areas in Qatar
Real estate ownership and its uses for non-Qataries differs from Qataries at so many levels. Expats can buy property or invest in it in designated areas only, i.e., freehold and leasehold areas.
These areas include all types of housing for expats to start their new life. Let’s have a look at further area division in each category:
Freehold Areas in Qatar
Non-Qataris can buy or invest in real estate and residential properties on freehold ownership in the following areas:
- Lusail City
- The Pearl
- West Bay Lagoon
- Jabal Thuaileb
- Al Khor
- Al Sadd
- Al Dafna
- Al Rufaa
- Onaiza
- Al Kharij
If you are looking for an apartment on rent in Qatar in any of these areas, there are plenty of rental properties available.
Leasehold Areas in Qatar
Qatar permits non-Qataris to buy real estate and residential properties on leasehold ownership in 18 distinct areas.
- Musheireb (Area #13)
- Frij Abdul Aziz (Area #14)
- Doha Jadeed (Area #15)
- Ghanem Al Qadeem (Area #16)
- Al Rufa Al Hitmi (Area #17)
- Al Salata (Area #18)
- Freej Bin Mahmoud (Area #22)
- Freej Bin Mahmoud (Area #23)
- Rawdat Al Khail (Area #24)
- Al Mansoura & Bin Dirham (Area #25)
- Najma (Area #26)
- Umm Ghuwailina (Area #27)
- Al Khulaifat (north and south) (Area #28)
- Al Sadd (Area #38)
- New Mirqab & Al Nasser (Area #39)
- Doha International Airport (Area #48)
- Al Dafna & Al Qassar & Onaiza (Area #60 & 61 & 63)
- Lusail, Al Kharaij & Jebel Theayleb (Area #69 & 70)
Looking for a property to buy in these leasehold areas? There are many properties for sale in Qatar that you might be interested in.
FAQs
1. What is Freehold and Leasehold Ownership?
Freehold ownership involves owning a property, including its land, without a fixed time limit. While leasehold ownership involves owning a property for a fixed period from a landlord who owns the entire building or land.
2. Is Freehold Better Than Leasehold?
Freehold purchases offer greater simplicity and complete ownership compared to leasehold purchases. As a result, freehold is better than leasehold.
3. What Is the Primary Disadvantage of Leasing?
Leasing lacks asset ownership, which is potentially problematic for long-term use or plans to modify or customise it.
4. What Is an Example of a Leasehold Property?
A leasehold agreement does not transfer the ownership of the land, the landowner retains ownership of the land, while the property owner is responsible for maintenance, repairs, and upkeep. Additionally, there may be an annual fee for maintenance, and permits will be needed for any alterations to the home.
The terms and conditions for property ownership in freehold vs leasehold areas in Qatar differ. The difference between both can help you make a well informed decision when investing in Qatar’s real estate market.
Looking for more guidance on real estate services in Qatar? Check out the Property Finder’s Blog now!
