Property ownership: Can foreigners buy property in Dubai?
- Can Foreigners Buy Property in Dubai?
- Eligibility Criteria
- Where Can Foreigners Buy Property in Dubai
- Benefits
- FAQs
In 2002, the Dubai Government passed laws allowing freehold property ownership in Dubai for foreigners, which proved to be a turning point for the real estate market. Since then, Dubai has established itself as a global investment hub. Thanks to the diverse choice of properties, healthy ROI and regulated market, the question ‘Can foreigners buy property in Dubai?’ has been answered in the form of steady demand from foreigners, including residing expats and non-residents.
This blog will discuss the eligibility criteria for non-resident investors, the areas where foreigners can buy property in Dubai and the benefits they reap from investing in real estate!
Can foreigners buy property in Dubai?
One of the most common questions regarding Dubai’s real estate market is “Can I buy a house in Dubai as a foreigner?”. People also have concerns about whether buying property in Dubai as a foreigner is feasible and beneficial in the long term.
Yes, foreign nationals, which includes both expatriate residents and non-resident investors, can purchase property in Dubai on a freehold basis. This allows foreign nationals to buy, sell or lease their property. However, buying a property in Dubai as a foreigner is only allowed in freehold areas, as outlined by the government.
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What is the eligibility criteria for foreigners buying property in Dubai?
As mentioned earlier, Dubai’s property market is open to non-resident investors, meaning that a residence visa is not necessary when buying property. However, they are required to hold a valid passport when purchasing property in Dubai to confirm their identity.
Foreigners buying property in Dubai can also get a mortgage from banks operating in the UAE. However, their options would be limited as opposed to the ones available to expat residents and UAE nationals.
The eligibility criteria for non-resident mortgages in Dubai will vary between banks and can include factors such as the country of residence, monthly income and more.
If you’re wondering how to buy property in Dubai as a foreigner on a mortgage? Then there is some paperwork required for the process. Documents needed to obtain a Dubai mortgage for non-residents will include bank statements and proof of work status, in addition to any other bank requirements.
Top areas to buy property in Dubai as a foreigner
Another frequently asked question by overseas investors is, ‘In what areas can foreigners buy property in Dubai?’
Property ownership in Dubai by foreigners is allowed in designated zones, also commonly known as freehold areas in Dubai. Investors will find that these freehold areas are some of the most sought-after neighbourhoods in the emirate – and boast a variety of property types to choose from.
Areas in Dubai with Ready Properties
As per our Dubai Sales Market Report for 2023, popular areas for property investments included Dubai Marina, Jumeirah Village Circle (JVC), Downtown Dubai, Business Bay and DAMAC Hills 2, all of which are freehold areas where foreign nationals can purchase property. These areas offer a mix of affordable and luxury real estate; thus, investors will find properties available at all price points.
- The starting price for a 1-bedroom apartment for sale in Dubai Marina is AED 1.90M.
- The 1-bedroom apartments for sale in JVC start at an affordable price of AED 930k.
- While the upscale 1-bed apartment for sale in Downtown Dubai has a starting price tag of AED 1.86M.
- Similarly, a 1-bed apartment for sale in Business Bay is available on the market for an average price of AED 1.30M.
If you are interested in bigger properties, a townhouse for sale in DAMAC Hills 2 demands a starting price of AED 1.09M.
Foreign nationals investing in Dubai’s real estate sector will find a wide range of property types, including apartments, duplexes, lofts, hotel apartments, villas and townhouses. You can discover more with our dedicated guide to various residential property types in Dubai.
Aside from this, foreign investors can also purchase commercial property in Dubai. These include offices for sale in Dubai as well as shops and showrooms in designated freehold areas.
Off-plan properties in Dubai
Dubai’s real estate market has witnessed tremendous growth in recent years and a major chunk of this growth is owed to off-plan projects. These projects have paved the way for buying property in Dubai for foreigners.
Renowned project developers like Nakheel, Emaar Properties, DAMAC, Meraas, Sobha Realty and more are selling off-plan projects like hotcakes!
If you are serious about buying properties in Dubai as a foreigner, take a look at some of the hot new property launches in Dubai for May 2024.
Topping the list is Greenside Residences. The project is expected to reach completion by Q3 2027 and will offer 1 to 3-bedroom apartments.
The building will be located near Dubai Hills Mall, with easy access to Al Khail Road (E44). Emaar Properties are developing Green Residences and has already created hype in the market!
We then have the Bayview by Address Resorts – a luxury residential project by none other than Emaar Properties. The tower will feature 1 to 4-bed apartments and 4 to 6-bedroom penthouses, offering stunning views of the city. The project will be ready for handover in 2028.
Another most talked-about project to be launched in Downtown Dubai is Rove Home. A project by IRTH and Rove Hotels, this residential building will offer studios to 2-bedroom luxury apartments. The flats will be fully furnished and investors can even consider purchasing a half-floor or full-floor there. Rove Home is expected to be completed in the second quarter of 2026.
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Benefits of buying property in Dubai for foreigners
There are various benefits for foreigners buying property in Dubai. If you are debating whether to invest in Dubai’s real estate sector, here are some of the advantages that you’ll enjoy in this strategically located emirate.
Competitive property prices
One of the biggest advantages for overseas investors is the competitive prices for properties in Dubai as compared to other major cosmopolitan hubs.
These competitive prices allow overseas investors to gain more value for their money, as well as reap the benefits of a cosmopolitan destination that offers excellent business infrastructure and a high-end lifestyle. It’s one of the most significant reasons why Dubai is the best place to buy luxury properties in the world.
High rental yields for properties
Foreigners buying property in Dubai will also benefit from high rental returns on their investments. For instance, the villa properties in Dubai offer healthy average ROI of up to 8%, while the apartments have rental yields that reach up to 11% on average.
The tax system is investor-friendly
Another reason why Dubai property for foreigners is a lucrative deal is because of the investor-friendly tax system in place. Currently, the UAE does not place any taxes on purchased property or rental income, allowing overseas investors to enjoy healthy returns on their property.
Investors can obtain a residence visa
Foreign nationals interested in living in the UAE can also acquire a residence visa by investing in property. For instance, since the introduction of the Golden visas in the UAE, real estate investors with property worth AED 2M (USD 550k) can be eligible for a 10-year residence visa, provided they meet the other criteria.
Alternatively, Dubai Tourism, in conjunction with the General Directorate for Residency and Foreign Affairs (GDRFA), has launched a retirement programme in Dubai for expats, which allows foreign nationals above the age of 55 years to obtain a five-year residence visa if they own property worth AED 1M (USD 275k).
Comprehensive property management services are available
Foreign nationals who want to buy property in Dubai purely for investment purposes can employ the services of property management companies to maintain their property and handle legalities.
There are various property management companies in Dubai which offer a comprehensive range of services.
These can include but are not limited to finding tenants, handling maintenance and rent collection as well as providing regular updates and financial reports.
Overseas investors can use our property management tips in Dubai to identify the right company to oversee their investments in the city.
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FAQs
What is the cost of buying property in Dubai?
There are multiple expenses to consider when buying a property. Our costs of buying property in Dubai guide can help you out with the whole process.
What are the top areas to rent apartments in Dubai?
Some of the top areas to rent in Dubai include Jumeirah Village Circle, Al Nahda, Bur Dubai and Dubai Silicon Oasis. These communities feature wide-ranging amenities and facilities for residents.
Can expats buy a property in Dubai?
Of course! Expats can consider the freehold residential plots in Dubai in case they wish to build their property(s) from scratch or buy something pre-constructed by the industry’s renowned developers.
Are there freehold areas in Abu Dhabi?
Yes, in 2019, Abu Dhabi opened its freehold market to foreign investors. Discover the popular freehold areas in Abu Dhabi and the types of property available in these developments.
That concludes our guide for property purchases in Dubai by foreign investors! If you’re wondering whether to invest in the emirate’s real estate market, take a closer look at the pros and cons of buying property in Dubai.
Once you’ve decided to invest in Dubai, you can browse through Bayut’s massive portfolio of apartments and villas for sale in Dubai to discover the perfect property for you! And make sure you are aware of the New rules for foreigners buying property in the UAE.
Foreigners can also invest in usufruct properties in the UAE. Discover our comprehensive guide to usufruct rights and learn everything you need to know about this unique investment opportunity.
Stay tuned to MyBayut to learn more about buying and investing in property in Dubai!
