In 2022, the laws passed by the Dubai government allowing foreigners to own freehold property in Dubai marked a turning point for the local and national real estate markets. Since that time, Dubai has become a major international center for investments. Due to the wide variety of properties available, the strong ROI, and the well-regulated market, 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.
Are Foreigners allowed to Buy Property in Dubai?
Is it possible for foreigners to own a home in Dubai? is one of the most often asked questions about Dubai’s real estate market.
Yes, foreigners can buy real estate in Dubai on a freehold basis, including both non-resident investors and expatriate residents. Foreign nationals are now able to buy, sell, or rent their property thanks to this. However, keep in mind that only some government-designated zones in Dubai enable foreigners to own real estate on a freehold basis.
Perks for Foreigners buying Real Estate in Dubai
There are numerous advantages for foreigners purchasing real estate in Dubai. Here are some benefits you’ll get from investing in Dubai’s real estate market if you’re on the fence. This emirate is place in a strategic location.
HIGH PROPERTY RENTAL YIELDS
High rental returns on their investments will also be advantageous to foreigners purchasing real estate in Dubai. For instance, villa properties in Dubai have healthy average ROIs of up to 6%, while rental yields in apartment complexes are often up to 7.5%.
COMPETITIVE PRICES FOR PROPERTY
The affordable pricing for houses in Dubai when compared to other significant cosmopolitan cities are one of the largest benefits for foreign investors. According to Knight Frank’s 2019 Wealth Report, the average price per square foot is $1,629 in Shanghai, $2,020 in Paris, and $2,994 in London, but only $650 in Dubai! It’s one of the most important explanations for why Dubai is the best location in the world to purchase a luxury home.
A RESIDENCE VISA CAN BE OBTAINED BY FOREIGN INVESTORS.
Foreign nationals who want to reside in the UAE can also do so by purchasing real estate. Since the advent of long-term visas in the UAE, for instance, real estate investors with properties valued at AED 5 million (USD 1.36 million) may be qualified for a five-year resident visa, provided they also meet the other requirements.
In contrast, Dubai Tourism and the General Directorate for Residency and International Affairs (GDRFA) have introduced the Retire in Dubai programme, which enables foreign nationals over 55 to get a five-year residency visa provided they buy property worth AED 2 million (USD 544.5k).
COMPREHENSIVE PROPERTY MANAGEMENT SERVICES
Property management businesses are available to help foreign nationals who are buying real estate in Dubai strictly as an investment to maintain their property and take care of the necessary paperwork.
In Dubai, there are numerous property management firms that provide a wide range of services. Finding tenants, managing maintenance and rent collection, as well as delivering frequent updates and financial reports, are just a few of these.
A FRIENDLY TAX SYSTEM FOR FOREIGN INVESTORS
The investor-friendly tax system in place is another advantage for foreigners purchasing real estate in Dubai. The UAE currently levies no taxes on real estate purchases or rental income, allowing foreign investors to earn substantial profits on their investments.
How Can Foreigners Buy Real Estate in Dubai
Since the residential market in Dubai became open to foreign buyers in 2002, numerous foreign buyers and expats have become interested. Foreigners can buy real estate in leasehold areas, which are often found close to the city center, or in freehold communities, which are disperse around the emirate. With so many villas, townhouses, and affordable as well as luxury apartments for sale in Dubai, the number of properties available to foreigners has grown dramatically over time.
Purchasing a house is a fairly simple process. A resident visa is not necessary; all that is require is for the foreign buyer to have a current passport. In order to discover the ideal property and finish the appropriate paperwork, the buyer can engage with regional real estate brokers or directly with the developer.
Criteria to Buy Property in Dubai
Whether to buy an apartment, townhouse or a villa?
Apartment complexes for rent are often concentrate along Sheikh Zayed Road, the main thoroughfare, or close to the ocean in places like Jumeirah Beach Residence, Dubai Marina, Greens, and Jumeirah Lake Towers. There are some villas that are close to the coast, but there aren’t many of them and they might not be for sale.
The majority of villas and townhouses are located inland from the shore in places like Emirates Hills, Meadows, and Springs. Further inland, in places like Arabian Ranches, Dubai Sports City, and Jumeirah Village Circle, there are also lots of villa complexes. Numerous apartment structures may found in a few of the inner communities, including Jumeirah Village Circle and Dubai Motor City.
Whether to buy ready-to-move in or off plan properties?
Both flats and villas/townhouses can purchase off plan, and typically at appealing prices. Typically, the developer will present a blueprint for the entire community as well as floor layouts for the available units. A display flat or show villa may be available from some developers to show the kind of layout and furnishings to anticipate.
However, there is some risk associated with off plan houses. Delays in construction and handover are quite common these days. Rarely will a project complete shelve or delay. Payments for off plan residences are frequently base on how quickly the building is going, with various plans being offer by various developers. Research on all the possible risks to be eliminate.
What are the reasons to buy the property?
If the property is buy for investment purposes, then use resources like the Rental Index from Property Monitor and the Rental Calculator from the Dubai Land Department that takes into account the current rental yields in various areas. In order to determine the property’s resale value, consider the age of the apartment complex or villa.
If the property is solely being bought to start a family, and live a life then location is one of the most important factors to consider.
The significance of the Developer and Community
Look up the developer or community online to learn more about the scope of improvements they have accomplished, the standard of community maintenance, any previous delays in completing projects, and feedback from existing residents of certain communities. This research can be particularly helpful in assessing the level of completion of some of the newer communities’ fundamental amenities, such as clubhouses and supermarkets that serve the entire neighborhood.
Emaar, Meraas, Nakheel, and DAMAC Properties are a few of Dubai’s top developers.
Consult with the best real estate agency
The entire process of buying property in Dubai can be a daunting task. You may consult the best real estate agency in Dubai to ease out the entire procedure. Next Level Real Estate is a professional real estate agency that has a huge catalog of villas, townhouses, affordable and luxury apartments for sale in Dubai. You can browse through an extensive collection and ask for a free consultancy to help you with the property buying process in Dubai.