The passage of laws by the Dubai government allowing foreigners to own freehold property in the city in 2002 marked a turning point for the local and national real estate markets. Since then, Dubai has developed into a significant global investment hub. There has been a consistent demand from foreigners looking to purchase real estate in Dubai, including expats who are currently living there and non-residents, due to the wide variety of properties available, a healthy return on investment, and a well-regulated market.
For non-resident foreign investors looking to buy real estate in Dubai, we’ve put together a brief guide. If you have questions like “What conditions must non-resident investors meet?” or “Where can foreigners purchase real estate in Dubai?” Continue reading to learn the answers to these and other questions.
Can foreigners buy properties in Dubai?
One of the most common questions regarding Dubai’s real estate market is “Can foreigners buy a house in Dubai?”
Yeah, of course, foreigners may purchase freehold real estate in Dubai. This includes both non-resident investors and expatriate residents. This makes it possible for non-citizens to purchase, sell, or rent real estate. However, keep in mind that only specific zones, as outlined by the government, are permitted for foreigners to purchase real estate in Dubai on a freehold basis.
Where can foreign investors purchase property in Dubai?
Where can foreigners buy property in Dubai? is a question that foreign investors ask quite a bit. Foreigners are permitted to own property in Dubai’s designated zones, also referred to as the city’s “freehold areas.” However, investors will discover that these freehold areas are among the most sought-after communities in the emirate and offer a variety of property types.
According to our Q3 2020 Dubai real estate report, Dubai Marina, Downtown Dubai, Jumeirah Village Circle (JVC), Arabian Ranches, Dubailand, and Palm Jumeirah were the most sought-after freehold neighborhoods for property investments. Investors will find properties available at all price points in these areas because they offer a mix of affordable and luxurious real estate.
The cost of 1-bedroom apartments in Downtown Dubai begins at AED 660,600, while the cost of affordable 1-bedroom apartments in JVC is AED 329,600 (USD 89.6k) (USD 179.7k). Similar to this, 4-bedroom villas in Dubailand start at AED 1.4 million (USD 381.1 thousand), while those in Palm Jumeirah begin at AED 4.11 million (USD 1.12M).
There are many different property types available for foreign investors in Dubai’s real estate market, including apartments, duplexes, lofts, hotel apartments, villas, and townhouses. Our comprehensive guide to Dubai’s various residential property types can help you learn more.
In addition to this, international investors can also purchase commercial real estate in Dubai. Along with stores and showrooms in designated freehold areas, these also include offices for sale in Dubai.
Advantages of Foreigners Purchasing Real Estate in Dubai
Foreigners buying real estate in Dubai have a lot of benefits. If you’re thinking about it, the following advantages come with real estate investment in this well-located emirate:
Competitive property prices
The affordable prices for properties in Dubai when compared to other significant cosmopolitan hubs are one of the biggest benefits for foreign investors. According to Knight Frank’s 2019 Prosperity Report, the cost per square foot in Dubai is $650, compared to $1,629 in Shanghai, $2,020 in Paris, and $2,994 in London. It’s one of the most crucial justifications for why Dubai is the best place in the entire world to buy a luxury residence.
Because the prices are so low, foreign investors can get a lot more for their money while living in an attractive and safe place with great business infrastructure, a high-end lifestyle, and a global population.
HIGH RENTAL YIELDS FOR PROPERTIES
Foreigners buying real estate in Dubai will also benefit from high leasehold investment returns. For instance, the rental yields for apartment communities in Dubai can average up to 7.5%, while the average ROI for villa properties in Dubai is a healthy 6%.
The tax system is investor-friendly.
Another benefit for foreigners buying real estate in Dubai is the investor-friendly tax regime that is in place. The UAE currently levies no taxes on real estate purchases or rental income, allowing foreign investors to earn healthy returns on their investments.
Investors can obtain a residency visa.
Real estate can be purchased by foreign nationals who want to live in the UAE. Since the introduction of long-term visas in the UAE, for example, real estate investors with property valued at AED 5 million (USD 1.36 million), provided they also meet the other requirements, may be eligible for a five-year residence visa.
Dubai Tourism and the General Directorate for Residency and Foreign Affairs (GDRFA) have also started a program called “Retire in Dubai.” This program lets foreigners over 55 who own property worth AED 2 million (USD 544.5 million) get a five-year residence visa.
So, foreigners who own property in Dubai can also use it to get a residence visa and enjoy living in a cosmopolitan hub.
Comprehensive property management services are available.
Foreigners who want to buy property in Dubai just as an investment can hire property management companies to take care of their property and deal with legal issues.
There are various property management companies in Dubai that offer a comprehensive range of services. These can include, but are not limited to, finding tenants, taking care of repairs and collecting rent, and giving regular updates and financial reports.
Our tips on property management in Dubai can help people from outside the city find the right company to look after their investments in the city.
WHAT ARE THE REQUIREMENTS FOR FOREIGN NATIONALS TO BUY PROPERTY IN DUBAI?
As was previously mentioned, non-resident investors are welcome on Dubai’s real estate market, so obtaining a residence visa is not necessary. But in order to prove who they are, they must have a valid passport when buying property in Dubai.
Do you want more information on “loans for foreigners in Dubai”? Foreigners buying real estate in Dubai can also get mortgages from banks with operations in the UAE. But keep in mind that they won’t have as many options as foreign residents and UAE citizens.
Various factors, including the nation of residence, monthly income, and more, may be included in the eligibility requirements for non-resident mortgages in Dubai, depending on the bank. Bank statements and proof of employment status are just a few of the documents required for non-residents of Dubai to get a mortgage.
This concludes our overview of buying real estate in Dubai for foreign investors. With the help of our specialized guide, you can learn more about the procedures and expenses associated with purchasing real estate in Dubai. You must be aware of certain regulations if you plan to purchase real estate in Dubai as a foreigner.
Look more closely at the benefits and drawbacks of purchasing real estate in Dubai if you’re debating whether to make an investment in the emirate’s real estate market. Once you’ve made the decision to make an investment in Dubai, you can search through Al Amodi enormous inventory of apartments and villas for sale in Dubai to find the ideal home for you!
2019 saw the opening of the freehold market in Abu Dhabi, the capital of the UAE, to outside investors. Learn about the types of properties offered in Abu Dhabi’s well-known freehold developments.