Dubai presents an attractive real estate market for international investors. Its dynamic environment, tax-free living, and high rental yields make it an appealing investment hub. However, the process can be confusing, especially for non-residents. Our comprehensive guide will teach you how to buy property in Dubai if you’re not a resident.
Yes, absolutely. Since the UAE government relaxed the laws concerning foreign property ownership in 2002, non-residents, including expatriate residents and foreign investors, are allowed to buy residential or commercial property in Dubai. The intent behind this policy shift was to encourage foreign investment, and it has resulted in a boom in Dubai’s real estate sector, drawing investors from around the world.
However, it’s important to note that there are certain rules non-residents have to follow. Foreign ownership is limited to freehold areas; these are zones within the city where foreigners can buy, sell, or lease properties with minimal restrictions. Key freehold areas in Dubai include popular destinations like the Palm Jumeirah, Downtown Dubai, Jumeirah Beach Residence, and Dubai Marina, among others.
Yes, non-residents can rent out property in Dubai. Many foreign investors purchase properties in freehold areas, then lease them out to generate a steady stream of rental income. It’s an appealing investment strategy given Dubai’s status as a business hub and tourist destination, which results in high rental demand.
While you can technically buy property without assistance, the recommended way for non-residents to buy property in Dubai is to hire a reputable real estate agent. An agent can provide vital market insights, facilitate property viewings, negotiate with sellers, manage legal paperwork, and liaise with the DLD to finalize the transaction.
While it’s possible to buy property in Dubai without an agent, this isn’t advised unless you have a robust understanding of the local real estate market and the legal procedures surrounding property transactions. Here are the steps to follow if you choose to proceed without an agent:
Identify a Property: Start by researching different freehold areas. Use online resources to compare prices, explore facilities, and weigh the pros and cons of different neighborhoods.
Negotiate: Once you have identified a property, contact the seller directly. Be ready to negotiate the terms of the sale, including the final price.
Draft a Memorandum of Understanding (MOU): After reaching an agreement, create an MOU that outlines the terms and conditions of the sale.
Pay the Deposit: Generally, you’ll need to pay a deposit of 10% of the purchase price.
Finalize the Sale: The last step involves the Dubai Land Department (DLD). They must approve all property transactions. Visit the DLD with the seller to finalize the sale.
For non-residents, the minimum down payment for a property in Dubai is typically 20% of the property’s value for non-residents. The remainder can be financed through a mortgage, with most UAE banks willing to finance up to 75% of the property value for non-residents. This can vary based on the bank’s policies and the buyer’s financial profile.
There’s no fixed minimum salary required to buy a house in Dubai. However, if you’re seeking a mortgage, banks typically require a minimum AED 15k monthly salary. This requirement ensures that you can comfortably service your loan without financial distress.
The cost of property in Dubai can vary widely, depending on factors like location, property type, size, and the current state of the market. Generally, studio apartments or one-bedroom apartments in less central locations, such as International City, are among the most affordable options. Prices in these areas can start as low as AED 200,000 (~USD 54,500).
Dubai doesn’t enforce a fixed minimum investment amount for its real estate market. The cost will primarily depend on the location and type of property you’re interested in.
If you’re aiming to get the UAE Golden Visa, the minimum investment is two million AED.
In short, buying property in Dubai as a non-resident may appear complex, but understanding the steps involved, legalities, and financial considerations can simplify the process significantly.
Doing due diligence, considering professional assistance, and aligning your purchase with your long-term financial goals are key to a successful investment.
Mina is Azizi’s iconic development in Palm Jumeirah, one of Dubai’s most sought-after freehold areas. The project features one- and two-bedroom apartments and penthouses overlooking the breathtaking views of Burj Al Arab, Atlantis The Palm, The Arabian Gulf, and the Dubai skyline.
Mina offers residents a variety of amenities to guarantee a convenient and luxurious lifestyle, including a private beach, a swimming pool, landscaped gardens, a fully-equipped gymnasium, and a children’s play area.
In addition, Mina’s exceptional location offers residents great connectivity and easy access to the city’s key attractions, such as the Mall of Emirates, Dubai Marina, Bluewaters Island, and Dubai International Airport.
Contact us today to learn more about our projects and buy off-plan property in Dubai.