Dubai’s real estate market has performed exceptionally in previous decades. Convenience taxation policies, infrastructure development and law and order situation have attracted expats and local investors, alike. To cater to the increasing number of foreign investors, the Dubai government permitted foreigners to purchase property in the UAE. Since then, foreigners and living expats can buy property in Dubai. However, there are certain conditions and steps that foreign investors need to adhere to.
Let’s dive a little deeper into the process of buying property in Dubai as a foreigner, the documents required for it and the criteria that need to be fulfilled.
Buying Property in Dubai as a Foreigner
Residents of any country whether they are living expat in the UAE or not can purchase properties in Dubai. However, foreign nationals can buy, sell or lease properties on a freehold and leasehold basis located in the Dubai Land Department (DLD) approved freehold property areas. Additionally, foreigners can also purchase commercial properties in the Emirate, but they must have a valid trade licence.
Now that you have your answer, can foreigners buy property in Dubai? Let’s jump on other necessary details regarding the process. However, please remember that all foreigners are obligated to adhere to the rules of buying property in Dubai for expats to avoid any legal issues.
Steps to Buy Property in Dubai as a Foreigner
Mentioned below are the convenient steps to buy property in Dubai as a foreigner.
Step 1: Select a Freehold Area
The first step in purchasing a property in Dubai is to select an appropriate area. The freehold property areas are present all across the Emirate, each offering unique benefits. To narrow down the list of areas, first, identify your purpose for buying a property.
For instance; if you are purchasing property for future investment, areas like Dubai Marina, Jumeirah Lake Towers and Jumeirah Village Circle offer higher Return on Investment (ROI).
Step 2: Choose between Off Plan and Ready Projects
Once done with the area, choose the type of property you want to invest in. Either opt for finished projects (ready to move in) or off-plan projects.
To purchase a finished property you must have all your finances arranged, as you will pay the total amount together. However, in off-plan properties, you can avail of different payment plans. In case you choose an off-plan property, browse through this list of things to consider when buying an off-plan property.
Step 3: Consult a Real Estate Agent
After selecting the type of property, it is recommended to consult a real estate agent in Dubai. Hiring a real estate agent makes the property-buying process convenient and also saves time and finances. In case you are wondering what else can be the advantages of hiring them, here is the complete list of benefits of hiring a real estate agent.
Step 4: Arrange Finances
Before proceeding any further, make sure you have all the finances to pay for the property purchase. In case you are planning to seek a mortgage for non-residents in Dubai, apply at least 3 months earlier to receive finances on time.
Step 5: Apply for NOC
In case you are purchasing a new unit or resale one, a No Objection Certificate (NOC) is required from the authorities.
Step 6: Register your Property
The last step is to register your property with RERA Dubai and obtain a new title deed in your name.
Now that you know all the steps to buying property as a foreigner, let’s move towards the types of properties you can buy in Dubai.
Types of Property Ownership in Dubai for Foreigners
Here are the details regarding types of freehold and leasehold properties that will elaborate on, where foreigners can buy property in Dubai.
Leasehold Properties
In leasehold properties, investors are provided with the right to use and benefit from the property till the lease ends. The tenure of leasehold properties can be a maximum of 99 years. However, during the lease, buyers are not permitted to make any changes to the property and have to follow certain rules and regulations.
Freehold Properties
In freehold properties, owners are provided with all the rights to own, invest or rent the property. Although, the freehold properties can only be purchased by foreigners in the designated freehold property areas of Dubai. Some of the most popular areas of freehold property areas in Dubai include:
- Downtown Dubai
- Business Bay
- Dubai Marina
- Jumeirah Beach Residence
- DAMAC Hills
- The Villa
- Reem
Benefits of Investing in Dubai’s Real Estate as a Foreigner
Investing in Dubai’s real estate comes up with a number of benefits, even if you are a foreigner. Mentioned below are some benefits of buying property in Dubai as a foreigner.
Taxation Policies
The properties purchased by foreigners in Dubai are completely tax-free, which is one of the most significant benefits of buying property in Dubai. Convenient tax policies like Dubai are difficult to find anywhere else in the world. The government has taken this initiative to support foreign direct investments in the region.
Continuous Upward Trajectory
The real estate market of Dubai has shown tremendous growth in the previous decades. Since then, the market closes on a positive note every year. Due to these positive trends, an increase in price and a significant ROI can be expected from real estate.
Infrastructure Development
Dubai offers a world-class infrastructure to its residents that will be enhanced in the near future. The government has launched multiple projects to make Dubai a future city. One such project is the Dubai Urban Master Plan 2040 which aims to transform the city into a futuristic one.
UAE Immigration
Foreigners can apply for UAE immigration through their property investor visa. As evident from the name, the property investor visa is granted to those individuals who have invested in Dubai’s real estate. The visa is granted for a minimum of 6 months and a maximum of 10 years. For further information, you can read our blog on how to get UAE residence through a property visa.
This was the complete process of buying property in Dubai as a foreigner. The Dubai real estate market is one of the fastest growing in the world that offers higher investment returns. Moreover, if you are also interested in higher returns, browse through these properties for sale in Dubai and choose a suitable unit for investment.
Besides, if you are new to the market, here are some tips for overseas investors in Dubai.
Stay tuned to dubizzle’s property blog for more information on Dubai’s property law for foreigners.
