Buying a property in Dubai is a profitable opportunity for both residents and international investors. Whether you want to buy a villa or a furnished apartment for yourself, Dubai has every opportunity you can afford.
The best part about buying a property in Dubai is that you don’t need to pay any property taxes and get freehold ownership for foreigners, and a well-regulated environment.
There are different properties, including residential, commercial, and mixed-use that you can choose depending on your personal choice, budget, and needs. If you are a new investor in the UAE and need help, let’s learn how to buy a property in Dubai and what things you should consider first.
Can Foreigners Purchase Property in Dubai?
Yes, there are areas where foreigners can purchase property in Dubai, although only within certain areas known as "freehold" zones. The freehold areas refer to those specific locations where non-residents can own properties using full ownership rights. Freehold areas are designated by the Dubai government as part of the efforts aimed at attracting foreign investment.
Foreigners also have the liberty to buy properties in Dubai, and all of them fall into one of the following categories:
- Freehold properties
- Leasehold properties
- For commercial use for business and residential use
It is to be noted that the down payment for expats is 25%, while for nationals it is 20%. Settlement costs should, therefore, be considered beforehand for expats residing in Dubai before settling on a particular property.
How to Buy Property in Dubai
When you plan to buy property in Dubai, start by following our guide.
1. Research the Market
Dubai requires one to do extensive research on the real estate market of the country. Make sure that you at least not take a decision without having enough knowledge. Get a good knowledge of real estate prices, trends, as well as areas of interest, by checking the availability of properties and their prices through online property platforms as well as real estate agents. You can get in touch with us where our dealers can help you buy the best properties in Dubai.
2. Identify Freehold Areas
Only specific areas in Dubai allow foreigners to buy property. These are called freehold areas wherein foreign buyers can buy it directly. Make sure that the property of your choice is situated in one of these freehold areas.
Popular Freehold Areas In Dubai Are:
- Downtown Dubai
- Dubai Marina
- Palm Jumeirah
- Jumeirah Lake Towers
- Dubai Hills Estate
- Business Bay
- Dubai International Financial Centre (DIFC)
3. Choose Property Type
Dubai has various kinds of properties based on your choice that you can purchase in there.
- You can buy an apartment if you are interested in living in the city or invest in a lesser amount.
- You can decide on villas if you are interested in investing in bigger properties to accommodate larger family members or for luxury usage.
- In case you want to select suburban services, you can opt for townhouses.
- In case you are interested in investing in business space, you can choose commercial property.
Decide on the location, kind, and size of the property before you conclude.
4. Hire a Property Agent
It is always recommended to work with a licensed real estate agent like us. Our agents will guide you through the understanding of the market, find properties that fulfill your criteria, and take you through the entire buying process.
Real estate agents are updated on the rules and regulations and can make the buying process easy and smooth for you.
5. Financing End
Of course, there are financial banks that can finance foreign buyers in Dubai, but the conditions may be different from what a buyer has back home.
Normally, a 20-25% down payment is required from the buyers on the value of the property. Non-residents are sometimes asked to present proof of income, the validity of their passport, and evidence of residence in the UAE, according to the bank's policy.
6. Making an Offer
Once you have identified the home you want to pursue, your agent will guide you through the making of an offer on the house or the property. The seller then accepts, rejects, or makes a counteroffer. Once the parties agree, they proceed with the contract.
7. Execution of the Sales and Purchase Agreement (SPA)
The following is the signing of the SPA, a paper that details the terms of sale in a contract, including price, payment schedule, and provisions that need to be considered. One needs to understand the terms clearly before signing to ensure that they are fair.
8. Deposit
Making such a deposit usually runs to 10% of the property's value and is payable upon signing of the SPA. The deposit will remove the property from the market, setting your intention to buy.
9. Execute the Transfer of Ownership
Once the deposit has been paid, the transfer process commences for the property. The buyer and the seller have to personally visit the Dubai Land Department to complete the ownership transfer. All remaining balance must be paid at this stage; of course, for the price of the property. Following the payment, the property will be transferred officially in your name.
10. Acquisition of Title Deed
After that, you receive your title deed directly from the Dubai Land Department. It is a document of proof that this property is solely yours and should be preserved safely in case you need it anytime in the future.
Costs and Charges of Buying Dubai Property
Look at the following values that help you understand the cost and charges of buying property in Dubai.
- Dubai Land Department Fee: 4% value of the property is divided between buyer and seller each having to pay 2%
- Real Estate Agent Fee: 2% selling price of the property
- Notary fees- In some cases, one would incur extra costs from the notary.
- Registration Fees for a property: AED 290 per transaction
- Annual Maintenance Fees: Pay-as-you-go yearly charges on a house based on type and location.
These costs must be factored in as you plan your real estate purchase in Dubai.
Conclusion
Buying property in Dubai is not complex, even for foreigners. It involves researching the market, making a choice on the right property, securing financing, and completing legal paperwork. The process does involve some fees and paperwork, but Dubai's modern real estate market presents some great opportunities for personal use and investment.
Make sure you hire a licensed real estate agent and ensure that all costs are explained to you before buying. Ideal Dubai Real Estate is one of the well-known real estate partners in Dubai. We have experts of real estate agents who help you buy 100% profitable property in Dubai.
Outra property in Dubai without undue difficulty, for buying a property in Dubai may be a relatively simple process if followed step by step.
Frequently Asked Questions
1. Can a foreigner buy a property in Dubai?
Foreigners are permitted to buy property in Dubai. However, this must be done in freehold areas only. Freehold areas are open to ownership by foreigners and allow full property rights in some cases.
2. What is a freehold area?
A freehold area is a portion of the state of Dubai in which foreigners can buy and own property. Such areas are decided on by the government of Dubai.
3. How much deposit does it take to acquire a property in Dubai?
10-25% of the property price would be the average deposit needed. This will vary according to the form of financing a buyer may have.
4. Does one receive a mortgage in Dubai as a foreigner?
Yes, but the terms are different from those secured in the home country. For example, usually, the banks demand that the customers have at least 20-25% in down payment for non-residents.
5. How to buy a flat in Dubai?
You can buy a flat in Dubai, by choosing a property of your choice, paying the payment, signing a Memorandum of Understanding, getting an NOC and meeting the requirements. Once you get fulfill all these requirements, getting a flat becomes easier for you.
