Monday, October 18, 2010

Dubai: No guarantee of freehold status for Dubai Silicon Oasis property projects

Dubai Silicon Oasis (DSO) Authority reserves the right to grant freehold status to real estate projects being developed within the free zone, a senior official has revealed.
 
“It is the mandate of DSO Authority to regulate based on its operational requirement and to decide which areas to be activated as freehold. We have currently granted freehold status to Cedre Villas,” Muammar Al Katheeri, Senior VP Engineering Management, Dubai Silicon Oasis Authority
 
Earlier this year, Regulation No. 1 of 2010 amending Regulation No. 3 of 2006 designating areas for expatriates to enjoy freehold ownership was published in the Dubai's government official gazette.
 
Regulation No. 3 of 2006 designated DSO as an area in which foreigners could own property, but restricted their ownership rights to leasehold interests only.
 
Regulation No. 1 of 2010 removed this restriction and enabled the property within DSO to be owned by foreigners on a freehold basis.
 
Asked if completed projects will be given freehold status, Al Katheeri said: “The decree is not back dated. As far as our projects are concerned that depends on the management, how they see the future and what they feel will be the best for our operation as free zone.”
 
According to Al Katheeri, the authority is planning to reduce or even offer no discounts at all to cash buyers.
"We haven't reduced our sale price as the project has been sold at the right rate from day one. We have, however, reduced the discount given to cash buyers. When the project was launched, we gave a 10 per cent discount which is now reduced to eight per cent. When the community centre opens, I think it will be reduced to five per cent or we may even offer no discounts," he added.

© Emirates 24|7 2010

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