The question of how to buy property in Dubai as a non-resident remains relevant. Real estate in the metropolis traditionally attracts foreign buyers with its high quality, diverse amenities and favourable prices. Properties are chosen for seasonal vacations, relocation or investment purposes. In this article, we’ll explore how foreigners can purchase an apartment or house and what the requirements are.
Contents:
- Can a foreigner buy property in Dubai?
- Guide: how a foreigner can buy property in Dubai
- Procedure for foreigners to acquire real estate in Dubai
- Rights of property owners in Dubai
- Obligations of property owners in Dubai
- Buying property in Dubai: mortgage or installment plan?
- Assistance in buying property in Dubai
Can a foreigner buy property in Dubai?
The UAE authorities welcome and encourage foreign investments. In Dubai, there are several freehold zones where foreigners can purchase property in full private ownership. Among them are premium communities such as the Dubai Marina, Downtown Dubai, Palm Jumeirah and many other sought-after locations. It’s possible to find properties within any budget range, from affordable apartments to ultra-luxurious mansions.
When purchasing a villa or an apartment in Dubai, citizens of other countries can apply for a resident visa, its validity depending on the property's value. The minimum purchase amount is AED 750,000 (USD 204,000) and must be paid with personal funds. The visa can be renewed an unlimited number of times.
Guide: how a foreigner can buy property in Dubai
First, it’s necessary to determine the budget and goals. If the real estate in Dubai is chosen for relocation, it’s advisable to consider areas with infrastructure relevant to the specific family. Proximity to shops, hospitals and pharmacies is important for everyone but there may be additional preferences. For example, families with children may prioritise the availability of nurseries and schools but young professionals may be interested in easy access to the business districts and commercial centres.
If the apartment is being purchased as an investment, the tourism attractiveness of the community becomes an important factor. Vacationers often choose coastal or central areas close to major attractions. Developing communities are advantageous for investments as the prices significantly rise as the infrastructure develops. The quality of the property also matters. Modern homes with stylish finishes and furnishings remain in high demand.
Once you have a general idea of what you would like to purchase and what your budget is, it’s important to seek the assistance of professionals. Buying international real estate is not the time to save on broker services. The specialists are proficient in foreign languages, knowledgeable about local legislation and have a clear action plan for the transaction process, thereby ensuring its safety.
Procedure for foreigners to acquire real estate in Dubai
The process of purchasing real estate in Dubai by foreigners can be divided into the following stages:
- Selecting a specific property;
- Signing a Memorandum of Understanding (MOU) to confirm the agreement;
- Making a deposit, traditionally 10% of the property's value, although the amount may vary;
- Signing the purchase agreement;
- Obtaining a No Objection Certificate (NOC), which confirms that the seller has no outstanding obligations to the developer and serves as the basis for completing the transaction;
- Transferring the remaining payment to the seller;
- Registering property ownership with the Dubai Land Department (DLD).
On average, the entire process, from reservation to the transfer of ownership rights, takes approximately one month.
Rights of property owners in Dubai
Foreigners have the right to purchase any property in freehold zones in Dubai, with full discretion over its use. After purchasing the property, owners can sell, gift or pass it on by inheritance at any time. There’s no property tax in the UAE for both residents and expatriates. Foreigners who purchase property may also apply for a residency visa but it’s important to note that the visa remains valid as long as the ownership rights are maintained, not just within its designated time frame.
Obligations of property owners in Dubai
The responsibilities of property owners in Dubai are similar to those in other countries, primarily the maintenance of the property. In addition to the utilities, there’s an annual fee for the maintenance of the common areas in the UAE. These expenses cover the upkeep of amenities such as pools, gyms and other facilities within the community. The exact amount of the fee varies, based on the prestige level of the residential community. There are no fixed rates.
Buying property in Dubai: mortgage or installment plan?
Foreigners have the option to obtain a mortgage for purchasing property in Dubai. Key points to consider include:
- Mortgage interest rates vary between 3% and 6.5% annually, depending on the specific bank;
- Borrowers must provide evidence of their creditworthiness;
- Monthly mortgage payments should not exceed 50% of the borrower's official income;
- The maximum loan limit depends on the specific bank and the borrower's status. With a residency visa, one can obtain up to 80% of the property's value while without it, the limit is typically no more than 50%.
Alternatively, an instalment plan offered by developers is often more attractive. This option applies to properties under construction. Buyers are required to make an initial deposit at the time of reservation, usually ranging from 10% to 20% of the property's value. The remaining payments are made in instalments during the construction phase. Some developers offer the flexibility of paying for the property over several years after its completion. This approach eliminates the need to pay interest during mortgage processing.
Assistance in buying property in Dubai
Our website showcases a wide range of properties from reputable developers in Dubai at various prices. The user-friendly search system is equipped with filters that allow you to explore the available options independently by selecting specific areas, property types and price ranges. Prices are displayed in multiple currencies, including dollars and euros. Our specialists are always available to assist in finding the right property and guiding you through the legal aspects of the transaction.
