The real estate market in the UAE is full of lucrative opportunities for property buyers. Given the tax-free rental yields and capital gains, UAE real estate attracts residential and non-residential investors. Furthermore, amendments in property laws of different emirates have opened doors to buying a property in the UAE as a foreigner (non-resident or expat).
Here we have compiled a complete guide to buying a property in the UAE as an expat. Let’s go through the processes and types of properties available for expats in different emirates.
How to Buy a Property in the UAE as an Expat
Are there any rules or procedures to buy an apartment in the UAE as an Expat? Which areas in Dubai or Abu Dhabi are open to expatriates? Let’s find out the laws, types of property, and areas where an expat can invest in different emirates of the UAE.
RULES FOR EXPATS BUYING A PROPERTY IN DUBAI
Dubai has one of the flourishing and profitable real estate markets across the world. You can buy an apartment in Dubai or any other property in the areas designated as freehold. That said, expatriates get complete ownership of the property without any restrictions. There is no age limit to buying a property in Dubai as an expat and the Dubai Land Department issues the title deed to the investor.
Besides, here are some of the popular freehold neighbourhoods in Dubai where an expat can invest in property:
- Apartments: Arjan, Barsha Heights, Dubai Marina, Dubai Investment Park
- Villas: Reem, Jumeirah Park, Emirates Hills, Arabian Ranches
RULES FOR EXPATS BUYING A PROPERTY IN ABU DHABI
According to Law no. 19 of 2005 regulating the real estate sector in Abu Dhabi, an expat can only buy a property in the form of apartments or floors in the Emirate and not the land. Here is a detailed guide for buying property in Abu Dhabi. Moreover, when buying an apartment in Abu Dhabi or any villa, expats need to be aware of the following types of systems:
OWNERSHIP
Buying a property in Abu Dhabi as an expat through the ownership system allows complete rights for 99 years. Expats can make changes or completely dispose of the property they buy.
MUSATAHA
This type allows the right to the property for 50 years. Expats can make alterations and changes in the property within the specified period. Moreover, the contract can be renewed upon the agreement between both parties for a similar period.
USUFRUCT
When you buy a usufruct property in Abu Dhabi as an expat, it allows you to use the property completely for 99 years, but you can’t make changes to the property.
LONG-TERM LEASE
It allows buyers to use the property for at least 25 years.
AMENDMENTS IN THE ABU DHABI PROPERTY LAW FOR EXPATRIATES
The Abu Dhabi Government amended the Emirate’s real estate law in 2019. The law consists of two new amendments.
According to Article 3, residents or any legal person can own the property alongside non-nationals with a maximum 49% share in the public holding companies. Besides, the person allowed by the Abu Dhabi Crown Prince or the President of the Executive Council can buy the property in the Emirate.
Article 4 stipulates the changes for Musataha and Usufruct holders. Changes include the rights of the Musataha and Usufruct holders to dispose of the property after 10 years of ownership without the landlord’s permission. Moreover, the law provides the mortgage right, and the landlord can not mortgage the property without the consent of Usufruct and Musataha holders.
The list of top freehold areas in Abu Dhabi includes the following areas:
- Yas Island
- Saadiyat
- Reem
- Mariya
- Lulu
- Al Raha Beach
- Sayh Al Sedairah
- Al Reef
- Masdar City
RULES FOR EXPATS BUYING A PROPERTY IN SHARJAH
Sharjah has allocated fewer freehold areas compared to Dubai and Abu Dhabi. Expats can not own a property in Sharjah, but they do have the right to usufruct for a maximum of 100 years after registering to the Sharjah Real Estate Registration Department (SRERD). Besides, expats have the freedom to buy property in the following designated freehold areas in Sharjah:
- Aljada
- Al Mamsha
- Tital City
Buying a property in the UAE as an expat has certain benefits. For instance, the UAE is known for its no taxation systems. Moreover, you can yield tax-free income when you buy and rent houses in the UAE. Besides, investing in property in the emirates makes you eligible for a long-term residence visa.
That’s our complete guide to the rules and regulations for buying a property in the UAE as an expat. You can also manage your house remotely in Dubai if you have bought a house and live abroad.
FAQs
Can expats buy property in the UAE?
Yes, expatriates can buy property in the UAE.
Are there specific rules to follow for buying property in UAE for expats?
Yes, there are rules that expats must adhere to when purchasing property in the UAE.
Do the rules for buying property in UAE for expats vary across different emirates?
Yes, the rules for buying property may vary from one emirate to another in the UAE.
What are some key considerations for buying property in UAE for foreigners?
Expats should consider factors such as residency requirements, property ownership restrictions and legal procedures when buying property in the UAE.
Those were the important details for property ownership for foreigners in the UAE.
Stay connected with the dubizzle property blog to learn more about real estate rules and regulations across different emirates.
