Dubai has been considered a destination of choice for international property buyers because of its booming real estate market. Following The enactment of the law in 2002 that permitted expatriates and foreigners to purchase properties, Dubai attracted international investors into the city. According to a report from the EU Tax Observatory, between 2020 and early 2022, foreign ownership of properties in Dubai rose by 20% and accounted for approximately $23 billion in value.
Yes, foreigners/expats can buy property in Dubai.
The short answer is yes! Foreigners can buy property in Dubai. Since the laws were passed in 2002, foreign nationals have been allowed to purchase property in the city. This guide runs through everything you might want to know from the types of property to eligibility criteria and legal requirements.
Eligibility to Own Property – Dubai Laws on Foreigners
Although foreigners can purchase property in Dubai, there are some regulations of which they need to adhere. Article 3 of Regulation No. 3 (2006) states that some parts of Dubai have been allocated as freehold areas where individuals can buy. These freehold areas are indispensable as they provide unrestricted time-free ownership by expatriates and foreigners.
Foreign buyers can also apply for mortgages from UAE-based banks, though the mortgage terms and conditions vary. In fact, an expat in the UAE will be offered better deals than an individual who lives outside the UAE. More importantly, there is no age bar to purchase a property in Dubai.
Types of Properties available for Foreign Nationals to Buy
Foreigners and expats have the ability to purchase two basic types of property in Dubai
Freehold properties
- Freehold ownership gives one complete ownership to the property including the land itself with no specific time limitations imposed
- Freeholds can be used for remodelling, let or sold outright at one’s discretion
- Dubai Downtown and Dubai Marina amongst others are particularly freehold favorites for foreign homebuyers.
- The DLD will register your name as the landowner and give you a title deed.
- Property owners in freehold zones are eligible for renewable UAE residence visas.
Leasehold
- Leasehold ownership gives you the right to occupy a property for a term, usually up to 99 years.
- You own the property but not the land on which it sits.
- When the lease runs out, the property reverts to the freehold owner.
- Leasehold properties are usually cheaper than freehold but have some restrictions, such as needing the freeholder’s permission to renovate.
Step by Step Guide on How to Buy Property in Dubai for a Foreigner
Purchasing property in Dubai is rather direct if you follow these simple steps:
- Choose the Freehold Area
Determine your investment purpose: renting out or using the property for yourself and choose an area that best serves your end.
- Decide whether to go for Off-Plan or Ready Properties
Off-plans are relatively affordable and can allow flexible payment terms, and ready properties are available for use or rent at once.
- Consult a Real Estate Agent
Working with an experienced real estate agent will make the process easy. They will guide you on the market, trends, and legalities and ensure that your transaction is hassle-free.
- Put Your Finances in Order
If you’re applying for a mortgage, apply for pre-approval from a bank to know if you are eligible. Terms for foreign buyers are usually different, so ensure you explore all your financing options.
- Negotiate and Sign the Agreement
Once you’ve found the right property, your agent will help with negotiations, and you’ll proceed to sign the purchase agreement.
- Complete the Transfer Process
Visit the Dubai Land Department (DLD) Transfer Office to finalize the property transfer and receive the title deed in your name.
Legal Procedure and Documents
Foreign buyers need to undergo the legal process and ensure the proper documents are available:
- Agreement of Sale
The parties (buyer and seller) should sign the agreement. The terms and conditions of the sale should be mentioned.
- No Objection Certificate (NOC)
The seller needs to take an NOC from the developer. The property should not have any outstanding charges.
- Title Deed and Identification
Documents required from the buyer include the original title deed, Emirates ID for the buyer and seller, passport, and the visa that each might hold.
To conclude, yes, they can purchase in Dubai. As long as proper knowledge and aid are there for them, foreign nationals can manage to have a good stake in property investing in Dubai, whether to buy for rental yield or make a home here in Dubai. Many opportunities await any investor who aims to buy an investment in tax-friendly high yields.
