No freehold guarantee for Silicon Oasis 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, told Emirates 24|7.

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.”

The leasing and sale of all 368 units in the first phase of the Dh1.55 billion Cedre Villas project has been completed, while the second phase was delivered in June.

Almost 40 per cent of the units have already been leased and sold.

“When we had launched the first phase, we saw some reluctance among the people mostly non-GCC investors. That was despite our sales being good. However, the freehold status has now created more interest.”

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.

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