Can foreigners buy property in Dubai?

Can foreigners buy property in Dubai?
Dubai’s real estate market is an increasingly attractive prospect for international buyers. However, navigating the complex process of buying property can be a big challenge for prospective buyers and investors. Proper guidance and professional help make this process less intimidating, even rewarding for property investors. Research by Knight Frank shows Dubai’s prime property prices rising 13.5 percent this year, outpacing other global cities such as Los Angeles (4 percent) and Paris (4 percent), with the mainstream residential market poised to grow up to 7 percent. These numbers present a lucrative opportunity for property investors to capitalize on the robust growth and favorable market conditions in Dubai. In this piece, we’ll break down the process of buying property in Dubai, and show how you could benefit from owning real estate in this dynamic city.

Where can foreigners buy property in Dubai?

Dubai’s real estate market is as diverse as it is dynamic. The mix of luxury villas and upscale penthouses alongside affordable apartments reflects the city’s multi-faceted character. The market has opportunities to suit various budgets and lifestyles, a testament to Dubai’s cosmopolitan appeal.

Read also: From Bollywood to billionaires: Why Indian investors choose Dubai’s real estate market

Non-residents can buy Dubai property in areas designated as freehold zones by the Dubai Land Department (DLD). These locations include some of Dubai’s most popular communities such as The Palm Jumeirah, Downtown Dubai, Dubai Marina, Blue Water Island and Business Bay.

This means that non-resident buyers have access to prime locations and developments in Dubai’s real estate market, allowing them to maximise the potential returns of their investment.

The benefits of investing in Dubai property?

Apart from being able to invest in both prime and affordable real estate, foreigners can also benefit from a favourable tax environment, world-class amenities and strong potential for investment returns.

The competitive prices of Dubai real estate compared with other cosmopolitan cities around the world and the city’s strategic location as a global business and tourism hub further enhance the prospects for property appreciation and rental income.

Moreover, non-residents can now benefit from a 10-year UAE golden visa or a five-year retirement visa for real estate investments as low as AED 2 million. With the golden visa, non-residents are also eligible to sponsor immediate family members to live in the UAE.

Moving swiftly to address the practical challenges during the pandemic, the DLD has also introduced a new system that allows non-resident investors to complete property sales transactions remotely from anywhere in the world.

The key steps to buying property in Dubai

Understanding the various stages involved in buying property in Dubai as a non-resident is essential for a successful and seamless experience. It is therefore important to know the different steps of the buying process, from initial research and property selection to legal considerations and financing options. Here are the key steps when buying property in Dubai as a non-resident:
  • Conduct thorough research to find a suitable property that meets your requirements.
  • Negotiate the terms of the contract with the developer.
  • Provide the sale terms in the Dubai Real Estate Regulatory Agency’s Form A and Form B documents.
  • Make a deposit, usually between 5 percent and 25 percent of the value. If the buyer decides against the purchase, the seller keeps the deposit.
  • Secure a No-Objection Certificate (NOC). This can be done remotely using the RERA app or in person at the developer’s office.
  • Sign a sales agreement or a Memorandum of Understanding (MoU), which is also known as Form F.
  • Complete the property registration process and receive the title deed.

Who can buy property in Dubai?

Any foreign national can buy property in Dubai. Non-residents are not even required to get a residence visa to invest in property, although they must hold a valid passport for identification.

Non-residents can also get a mortgage from banks in the UAE, although eligibility will vary from bank to bank, and financing options are limited compared with those offered to residents and UAE nationals.

Tips for non-residents buying property in Dubai

  1. Conduct thorough research: Familiarise yourself with the Dubai real estate market, including popular areas, property types, market trends, and legal regulations. You can find all information about the Dubai property market on GLLIT as well as a full listing of competitively priced properties across different locations.
  2. Engage a reputable real estate agent: Partner with a trusted agent who has a solid track record and deep knowledge of the local property market.
  3. Define your investment goals: Determine your budget, investment objectives, and preferred property specifications to narrow down your options effectively.
  4. Consider off-plan: Explore the potential benefits of investing in off-plan property, which offers attractive pricing and the possibility of capital appreciation upon completion.
  5. Assess financing options: Explore mortgage options for non-residents and understand the eligibility criteria, interest rates, repayment terms, and associated costs of each bank.
  6. Conduct thorough due diligence: Check the seller or owner of the property, and identify any potential risk before proceeding with a purchase.
  7. Stay updated on market trends: Stay informed about market trends, new developments, infrastructure projects, and upcoming regulations that may impact the value of your property and future investment opportunities.
Purchasing real estate in Dubai as a foreigner has its challenges, but it is ultimately a feasible and potentially rewarding investment. With careful planning, trusted professional guidance and resources, and a keen understanding of the local market, you can thrive among the most successful property investors and owners in this vibrant city.

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2 Comments

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