Dubai’s real estate market is witnessing significant expansion, driven by increasing demand from international investors attracted to its luxury properties and high returns. One Investments, a leading real estate advisory, provides carefully selected opportunities designed to enable global investors to benefit from Dubai’s rising real estate market.

 

For those curious to know if foreigners can buy property in Dubai, the answer is yes. This blog highlights the key insights, benefits, and growth potential of the country’s booming real estate market.

What types of Properties Are Available for Foreigners to Buy in Dubai

 

 

Foreigners and expats in Dubai can purchase two types of properties freehold and leasehold.

Freehold Properties

 

Freehold ownership provides the buyer with full ownership of both the property and the land it occupies, without any time limitations.

 

Key Features of a Freehold Property Include:

 

• The Dubai Land Department (DLD) will officially register the buyer’s name as the “landowner” in the government registry and issue a title deed for the property.
• In an event of the owner’s death, the property will be passed on to their heir.
• The owner has the right to sell, lease, or occupy the property as they see fit.
• The property owner and their family may qualify for renewable UAE residence visas, provided they meet certain conditions. These visas can be valid for up to five or ten years.
• The owner is responsible for the maintenance, upkeep, and any major repairs of the property, not the tenant.

 

Some examples of the Freehold properties include Palm Jumeriah, Dubai Marina, Dubai Downtown etc.

Leasehold Properties

 

In contrast, leasehold property ownership grants the buyer the right to occupy a property for a specified duration. Although the typical lease term is 99 years, it may be shorter in some cases.

 

Key Features of a Leasehold Property include:

 

• Leasehold ownership grants the buyer rights to the property itself, but not to the land on which it is built.
• The leaseholder has the option to renew the contract at the end of the term and continue residing in the property.
• The leaseholder’s responsibility for property repairs and renovations will be limited.
• Leasehold properties are typically more cost-effective than freehold properties.

Laws Governing Property Ownership Eligibility for Foreigners in Dubai

 

 

Foreigners are permitted to purchase and own property in Dubai, but they must comply with specific laws and guidelines.

 

Article 3 of Regulation No. 3 (2006) is a key provision, identifying the land plots designated as freehold properties, which are available for foreign ownership.

 

When buying property in Dubai, foreigners are also eligible to apply for a mortgage from banks operating in the UAE. However, their options may be limited, and the terms of the mortgage will vary based on factors such as monthly income. Additionally, whether the buyer is a UAE resident or a foreign resident will influence the available mortgage options.

 

There is no age restriction for foreigners wishing to buy property in Dubai.

What Taxes Apply to Foreigners Purchasing Property in Dubai?

 

The UAE government has introduced a tax system aimed at encouraging foreign investment, maintaining a no-tax policy. Foreign property buyers are exempt from taxes on rental income and property acquisitions, fostering a supportive investment climate.

Can Foreigners Obtain a Residence Visa by Purchasing Property?

 

Foreigners can easily obtain a long-term residence visa, which is one of the key benefits of purchasing property in Dubai. The UAE Property Investor visa is available for either three or five years, depending on the value of the property.

 

Foreigners who own property valued at AED 5 million are eligible for a 5-year residence visa. Alternatively, a property worth AED 750,000 qualifies the owner for a 3-year residence visa.

 

What Are the Advantages of Property Ownership for Foreigners in Dubai?

 

Competitive Property Pricing

 

Dubai’s real estate market presents desirable properties at competitive prices, offering remarkable value for money when compared to other global cities like New York and London.

Favourable Tax Conditions

 

The Dubai government and relevant authorities have made efforts to establish the city as an attractive, tax-friendly investment destination for foreign investors. Currently, the UAE does not impose taxes on property purchases or rental income, allowing foreign investors to earn significant returns on their investments.

Residence Visa Eligibility

 

Foreign nationals looking to reside permanently in Dubai or the UAE can obtain a residence visa by investing in the real estate market. For instance, purchasing a property in Dubai valued at a minimum of AED two million qualifies an individual for a 10-year Golden Visa.

Are Foreigners Allowed to Buy Property for Business Purposes?

 

Yes, foreigners are permitted to purchase properties for both commercial and residential purposes. To use a property for commercial activities, they must ensure they have the required documentation, such as a valid Trade Licence.

 

Additionally, foreigners can invest in rental properties and have companies manage the entire leasing process on their behalf.

What Steps Should You Follow When Purchasing a Property in Dubai?

 

By following the steps outlined below, foreigners can easily purchase property in Dubai:

 

• Selecting a developer approved by the Dubai Land Department (DLD) for new units
• Selecting a real estate agent registered with the Real Estate Regulatory Agency (RERA)
• Securing a loan, if necessary
• Applying for a No Objection Certificate, whether for a resale or new unit
• Registering the property with the Dubai Land Department in your name.

 

FAQ

Can You Buy Property in Dubai as a Non-resident?

 

Foreign nationals are permitted to purchase property in Dubai, with ownership allowed in designated areas such as Dubai Hills Estate.

Can You Own 100% Property in Dubai?

 

In Dubai’s designated freehold areas, foreign nationals can own 100% of a property without the requirement of a local partner.

When Did Dubai Allow Foreigners to Buy Property?

 

In 2002, Dubai transformed its real estate market by permitting foreign nationals to purchase freehold properties. This landmark decision attracted international investors and enabled non-residents to own property in designated freehold zones.

What Is the Minimum Salary to Buy a House in Dubai?

 

The salary required to purchase a house in Dubai depends on the property’s value and location. Typically, banks prefer applicants to have a minimum monthly income of AED 15,000. However, in certain cases, financing may be available for individuals earning less, potentially below AED 10,000.

Is it a Good Idea to Buy a House in Dubai?

 

Buying a house in Dubai can be a wise choice if it fits within your financial plan and is based on careful research. It presents an opportunity for attractive investment returns and access to a premium lifestyle.

Looking Ahead

 

One Investments offers a streamlined advisory service tailored for overseas investors. With our strong relationship with DAMAC and a rigorous due diligence process, we aim to guide clients through every step of the investment journey, ensuring secure, transparent, and high-value property acquisitions.