Overview
Wish to know about the legal requirements of owning a home in Dubai? Read ahead. The real estate market made an enormous shift in 2002 when the Dubai government established legislation permitting foreign nationals to buy freehold properties in Dubai.
Dubai has -made a name for itself as a major international economic center. The response to the question “Can foreign nationals buy property in Dubai?” has been a consistent demand from foreigners, including resident working professionals and non-residents, because of the market’s governance, strong ROI, and wide selection of properties.
Dubai is a leading real estate market where a variety of properties, including homes and luxury properties, are available for purchase using cryptocurrencies.
Purchasing a home in Dubai offers foreign nationals several advantages, not among them which is an enormous opportunity for the return on investment.
Can Foreigner or Non-UAE Nationals buy a property in Dubai?
Is it feasible or beneficial for foreign nationals to purchase real estate in Dubai in the long term? This is one of the most often-asked questions about Dubai’s real estate market.
Where Can Foreigners buy Property in Dubai
Law No. 7 of 2006 is the main reference and regulation regarding owning property in Dubai. The law entitles UAE and GCC residents to buy property anywhere in Dubai. As for the foreigners, they can buy their property in areas designated as freehold or leasehold.
Foreigners and Non-UAE Nationals can own freehold real estate in Dubai. This covers both foreign residents and non-resident investors. Foreign nationals are now able to purchase, sell, or lease real estate. However, according to government regulations, purchasing or investing in real estate is only permitted in Dubai’s freehold neighbourhoods.
What is the eligibility criteria for foreign nationals to buy property in Dubai?
Property Types in Dubai
Typically there are three types of properties available from a residential perspective if you are buying property as a foreigner.
All three types differ from each other in their outlook or style. However, before buying any property in Dubai the best way is to assess market conditions thoroughly.
Freehold Properties
Foreign Nationals who want to purchase an apartment in Dubai or who are interested in investing in the United Arab Emirates are the ones who typically look for freehold properties. (In Dubai, freehold property ownership gives the owner complete ownership of both the residence and the land on which it is built.)
Freehold real estate is available to residents of the United Arab Emirates and can be sold, rented, or inherited as needed.
Instead of houses or apartments, freehold properties for sale in Dubai have also been linked to comparatively undeveloped land channels. This enables owners to develop any kind of real estate on the property.
If you want to buy a freehold property in Dubai, you have to buy it from a property investor or real estate that has been approved by the government, like Prostar Realty Group.
Commonhold Properties
Commonhold properties are quite similar to those of freeholdhold properties, that can be purchased by potential buyers in Dubai.
As these properties are quite similar to the apartments. Their owner has to pay property maintenance fees as well as for common areas.
These properties are made up of the main residential units in a building, apartments, and apartment complexes, and are owned by a property developer or real estate.
Usufruct Properties
Usufruct properties are primarily lease-regarded investment property plans. This is the most common type of property in the UAE.
The occupant of the usufruct property doesn’t have the right to make any amends in the property in any way.
The life of leases for usufruct can be up to 100 years.
Steps for buying a property in Dubai
- Prepare a buyer/seller contract
- Sign the agreement/MOU – This Form F can be downloaded from the Dubai Land Department website.
- Check for all outstanding service bills and apply for a No Objection Certificate.
- Transfer ownership at the registrar’s office
Factors to consider- while buying a property in Dubai
- The first – important factor to deal with is to seek guidance from a real estate agent who is registered with RERA.
(RERA stands for the Real Estate Regulatory Authority. It’s a government agency established in Dubai, United Arab Emirates, responsible for regulating and overseeing the real estate sector.)
- Before buying property in Dubai or anywhere in the world the best way to buy is to stay informed about the market stability, rental yields, and price trends.
- The documents that are written in some other language should be attested and submitted with certified Arabic translations.
- It is better to register the transactions within 60 days from the date of signing the contract by both parties.
- Arabian Ranches, Palm Jumeirah, Dubai Marina, and Downtown Dubai are the few freehold districts best for foreign nationals buying property to buy property.
Legal Framework for Non-Resident or Foreigners to buy Property in Dubai
- In certain regions, non-residents are entitled to own freehold homes, so this makes it more convenient for foreign nationals buying property to own real estate.
- For legal protection and ownership rights, all real estate transactions have to be registered with the Dubai Land Department (DLD).
- Select verifiable developers that have a history of delivering high-quality work. investigate their past and confirm if they are licensed with the DLD.
- An Oqood, or preliminary sales agreement, is usually completed before the transfer of the property’s ownership. This document outlines the terms and circumstances of the transaction.
- Transfer fees, which are normally equal to 4% of the purchase price of the property. And other related expenses are the buyer’s responsibility.
Top 5 Benefits of Buying Property in Dubai
There are plenty of benefits for foreign nationals buying property in Dubai. These are some benefits you will experience in this prime spot emirate.
Affordable Pricing
The biggest advantage for the foreign international is the competitive prices in Dubai as compared to the other international countries.
These prices allow foreign nationals to gain more value for their money and get the benefit of a luxury high-end lifestyle and an impeccable infrastructure.
Strong Rental & Principal Yield
Investors overseas who purchase real estate in Dubai are also going to enjoy the benefits of immense rental returns. For example, Dubai’s villa properties have a solid average return on investment of up to 7.98%, whilst the average rental yield for flats is up to 9.04%.
Investor-Friendly Tax System
The attractive tax structure set up for investors is another factor contributing to the high value of Dubai real estate for foreign purchasers. Since the UAE doesn’t currently apply taxes on purchased property or rental revenue, foreign investors can benefit from high returns on their real estate investments.
Foreign Investors Can Obtain UAE Residence
Those from foreign nations who want to live in the UAE can also obtain a residency visa by making real estate investments. For example, real estate investors who meet the other requirements and own property valued at AED 5 million (USD 1.36 million) could be eligible for a five-year residence visa. Which has been made possible by establishing Golden visas in the UAE.
As an alternative, Dubai Tourism and the General Directorate for Residency and Foreign Affairs have introduced a permanent resident retirement program in Dubai that enables foreign nationals over 55 to apply for a five-year residence visa provided they own property valued at AED 2 million.
What Are the Admin Costs Involved while Buying a Home in Dubai?
The admin fees are a great detail to consider while buying a new home in the UAE. These include:
- Issuing the Title of Deed: AED 580
- Admin fees to DLD: AED 4,200
- Fees for the DLD are 4% of the property value.
Top FAQ’S
What is the typical cost range of buying property in Dubai?
The total cost of buying property in Dubai usually ranges from 7%-10% of the property price.
Is it easy to buy an apartment in Dubai?
In 2024, the purchasing of property in Dubai has become easier as compared to the real estate acquisition processes found in many international countries.
Hence, Dubai has made buying property a simpler experience for the buyers.
What are the few top areas to rent an apartment in Dubai?
Some top areas to rent an apartment in Dubai include Jumeirah Village Circle, Al Nahda, Burj Dubai, and Dubai Silicon Oasis.
These communities offer a wide range of luxuries and facilities for the residents.
Can foreign nationals buy residential plots in Dubai?
Yes, there are freehold residential plots in Dubai, that foreign nationals can consider to build their dream homes.
Can I Buy Property in Dubai Without an Agent?
Yes, you can. In Dubai, there are different communities where you can get a property directly from the developer or individuals who are selling their units.
What Is a Trustee Office in Dubai?
Trustee Centres or Trustee Offices in Dubai are offices that are authorized by the Dubai Land Department to act as an intermediary between the DLD and clients.
Services offered by a Trustee Office include:
- Overseeing property registration
- Managing mortgage
- Facilitating transactions.
