Why might investors prefer freehold property over leasehold property?

Study for the Dubai Real Estate Broker Exam with comprehensive practice questions and insightful explanations. Prepare with flashcards and multiple choice questions to ensure your success!

Investors often prefer freehold property because it provides complete ownership and rights over the property. This means that the investor holds the title and can make decisions regarding the property without being bound by the terms of a lease agreement. Complete ownership allows investors the freedom to modify, rent out, or sell the property as they see fit, which can be particularly appealing in a market like Dubai, where real estate can be a significant investment asset.

In contrast, leasehold properties have restrictions tied to the length of the lease, often requiring the lessee to follow conditions set by the lessor, and they can lose their rights to the property upon lease expiration. Therefore, the comprehensive ownership that comes with freehold property is a critical factor for investors seeking long-term gains and flexibility in property management.

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