In earlier decades, Dubai’s real estate market fared well. Convenient taxation policies, infrastructural development, and a stable law and order environment have attracted both foreign and domestic investment. To accommodate the growing number of international investors, the Dubai government allowed foreigners to own property in the UAE. Since then, foreigners and resident expats have been able to own property in Dubai. However, international investors must follow specific requirements and procedures.
Let’s go a bit more into the process of buying property in Dubai as a foreigner, including the documentation needed and the requirements that must be met.
AS A FOREIGNER BUYING PROPERTY IN DUBAI
Residents of any nation, whether expats in the UAE or not, can buy property in Dubai. Foreign nationals, on the other hand, can purchase, sell, or lease freehold and leasehold properties in Dubai Land Department (DLD) authorized freehold property regions. Foreigners can also buy commercial property in the Emirate, but they must have a valid trading license.
Can foreigners buy property in Dubai now that you know the answer? Let’s get started on the process’s remaining aspects. Please keep in mind, however, that all foreigners are required to follow the regulations of buying property in Dubai for expats in order to prevent any legal complications.
STEPS TO BUY PROPERTY IN DUBAI AS A FOREIGNER
The simple procedures to buying property in Dubai as a foreigner are outlined here.
STEP 1: CHOOSE A FREEHOLD LAND AREA
The first step in acquiring a house in Dubai is deciding on an ideal location. The freehold property regions are scattered across the Emirate, each with its own set of advantages. To limit down the list of places, first determine your reason for purchasing a home.
For example, if you’re looking to buy a home for future investment, neighborhoods like Dubai Marina, Jumeirah Lake Towers, and Jumeirah Village Circle have a better Return on Investment (ROI).
STEP 2: SELECT FROM OFF PLAN AND READY PROJECTS
After you’ve finished examining the neighborhood, decide on the sort of property you want to invest in. Choose from finished projects (ready to move in) and off-plan developments.
To buy a finished house, you must have all of your finances in order because you will pay the entire sum at once. Off-plan houses, on the other hand, provide a variety of financing options. If you decide to buy an off-plan house, go over this list of items to consider when buying an off-plan property.
STEP 3: SEEK THE ADVICE OF A REAL ESTATE AGENT
It is important to visit a real estate agent in Dubai after deciding on the sort of property. Hiring a real estate agent simplifies the property-buying process while also saving time and money.
STEP 4: SET UP FINANCES
Before starting, ensure that you have sufficient funds to cover the cost of the property acquisition. If you intend to apply for a mortgage for non-residents in Dubai, apply at least three months in advance to ensure that you get funds on time.
STEP 5: SUBMIT AN APPLICATION FOR NOC
A No Objection Certificate (NOC) from the government is necessary if you are acquiring a new or resale apartment.
REGISTER YOUR PROPERTY IN STEP 6
Finally, register your property with RERA Dubai and acquire a new title deed in your name.
Now that you’ve completed all of the requirements to purchasing property as a foreigner, let’s look at the different types of properties available in Dubai.
FOREIGN TYPES OF PROPERTY OWNERSHIP IN DUBAI
Here are the specifics on the several types of freehold and leasehold properties that will be discussed, as well as where foreigners may buy property in Dubai.
PROPERTIES ON LEASE
Leasehold properties provide investors the right to use and benefit from the property until the lease expires. Leasehold properties have a maximum tenure of 99 years. During the lease, however, purchasers are not able to make any improvements to the property and must adhere to specific laws and restrictions.
FREEHOLD PROPERTIES
Owners of freehold properties have complete ownership, investment, and rental rights. However, foreigners can only acquire freehold homes in Dubai’s approved freehold property regions. Some of the most popular freehold property regions in Dubai are as follows:
- Downtown Dubai
- Business Bay
- Dubai Marina
- Jumeirah Beach Residence
- DAMAC Hills
- The Villa
- Reem
BENEFITS OF INVESTING AS A FOREIGNER IN DUBAI’S REAL ESTATE
Even if you are a foreigner, investing in Dubai real estate has a lot of advantages. Some advantages of buying property in Dubai as a foreigner are listed below.
POLICIES OF TAXATION
One of the most important benefits of purchasing property in Dubai is that houses acquired by foreigners are totally tax-free. Tax policies as convenient as those found in Dubai are uncommon to obtain anywhere in the globe. The administration has taken this step in order to encourage foreign direct investment in the region.
PERMANENT UPWARD TRAJECTORY
Dubai’s real estate industry has expanded dramatically in recent decades. Every year since then, the market has ended on a bullish note. Real estate may be projected to improve in price and provide a substantial ROI as a result of these favorable tendencies.
IMPROVEMENT OF INFRASTRUCTURE
Dubai provides its citizens with world-class infrastructure, which will be improved in the near future. The government has initiated a number of programs to transform Dubai into a futuristic metropolis. The Dubai Urban Master Plan 2040, for example, intends to convert the metropolis into a futuristic one.
IMMIGRATION TO THE UAE
Foreigners with a property investor visa can apply for UAE immigration. The property investor visa, as the name implies, is awarded to persons who have made investments in Dubai’s real estate. The visa is valid for a minimum of six months and up to ten years. For more details, please see our article on how to get UAE residency with a property visa.
This was the entire procedure for buying property in Dubai as a foreigner. Dubai’s real estate industry is one of the world’s fastest expanding, with better investment returns. Furthermore, if you are looking for larger profits, go through these Dubai properties for sale and select a suitable apartment for investment.
Furthermore, if you are new to the industry, here are a few tips for overseas investors in Dubai.
