Are you considering investing in real estate in Dubai but unsure if foreigners are even allowed to do so? The good news is, yes, non-Emirati citizens can buy properties in Dubai.
However, the process and regulations may differ from what you’re used to in your home country. In this article, we’ll take a closer look at the rules and requirements for foreign buyers interested in purchasing real estate in Dubai.
What are the types of properties that foreigners can buy?
Foreigners are allowed to purchase freehold properties in designated areas called “freehold zones.” These areas are specifically designated by the Dubai government to promote foreign investment. Some of the popular freehold zones include Dubai Marina, Downtown Dubai, Palm Jumeirah, Jumeirah Lakes Towers (JLT), and Arabian Ranches.
What is a freehold property?
A freehold property means that you own the property and the land it’s built on indefinitely. This is different from leasehold properties where you only own the property for a specific period of time.
What are the requirements for foreigners buying real estate in Dubai?
- Valid passport: You’ll need a valid passport to prove your identity.
- Residence visa: You must have a residence visa issued by the UAE government.
- No objection certificate (NOC): If you’re not a resident but want to buy property in Dubai, you’ll need an NOC from the Dubai Land Department.
- Proof of purchase: You’ll need to provide proof of purchase such as a sales agreement or receipt.
- Purchase registration: Once you’ve purchased your property, you must register it with the Dubai Land Department.
What is the process of buying property in Dubai?
- Find a property: Start by finding a property that meets your needs and budget.
- Make an offer: Once you’ve found a property you like, make an offer to the seller.
- Sales agreement: If your offer is accepted, you’ll sign a sales agreement and pay a deposit (usually 10% of the purchase price).
- Fund transfer: You’ll need to transfer the remaining balance to the seller’s account.
- Title deed transfer: The final step is to transfer the title deed from the seller’s name to your name.
What are the costs associated with buying property in Dubai?
- Real estate agent commission: If you use a real estate agent, they will typically charge a commission of around 2% of the purchase price.
- Mortgage fees: If you need to finance your purchase with a mortgage, there will be additional fees such as arrangement fees, valuation fees, and processing fees.
- Transfer fees: The Dubai Land Department charges a transfer fee of 4% of the purchase price plus AED 580 (around $158) for title deed issuance.
In conclusion
Foreigners are allowed to buy real estate in Dubai in designated freehold zones. However, there are specific requirements and regulations that must be followed.
It’s important to do your due diligence and work with reputable real estate agents and lawyers to ensure a smooth and successful transaction. With proper planning and research, investing in Dubai real estate can be a lucrative opportunity for foreigners.