The magnetism of Dubai’s real estate attracts international real estate investors. Foreigners are fascinated by Dubai’s unprecedented growth and investment potential. It is not just one of the best living spaces. Still, this metropolitan city also offers property ownership rights to foreign investors, long-term residency visas and significant returns on investment which make it a top-ranked city when it comes to real estate investment.
The law allows expats and foreigners to invest, purchase and own all kinds of real estate in designated areas called freehold areas of the city. As a foreigner, you can purchase your dream property in designated areas such as Downtown Dubai, Dubai Marina, Palm Jumeirah, JVC, Dubai Hills Estate, etc.
Buying property in Dubai is not that easy. It requires market understanding, proper research and professional guidance. If you plan to purchase real estate in Dubai then continue reading this guide because it will walk you through everything you need to know about real estate investment in Dubai.
Why Dubai Attracts Foreigners
Strategic Location and Global Connectivity
This global city is located at the crossroads of Asia, Africa and Europe. Its prime location, world-class infrastructure and global connectivity make it a global investment hub, attracting investors, businessmen and entrepreneurs from across the globe. Its location and infrastructure allow people to access the city seamlessly. Given this, it is one of the best places to consider for living and your business.
No Property Tax and Freehold Ownership Rights
One of the most appealing things about Dubai is its tax benefits. Dubai does not levy income tax, capital gain tax and inheritance tax. It means the government does not charge anything out of your income or profit, increasing the ROI ratio. In addition to its tax-friendly environment, freehold property ownership rights also garner the attention of property investors because Dubai, UAE allows both expats and international property investors to purchase and enjoy complete ownership rights over their purchased properties.
High Rental Yields and Strong ROI Opportunities
Property investors generally seek high rental returns and Dubai is known for offering exceptional returns on investment. Dubai’s ROI ratio is significantly higher than that of London, New York and Singapore. If you invest in Dubai’s real estate, you can expect somewhere between 6% to 10% ROI based on the location of the property and the scope of your investment. So, people who seek high annual yields normally prefer Dubai for their real estate investment.
Growing Expat Population and Business Ecosystem
The diversity of the city, relentless growth, employment and business opportunities, investor-friendly policies, safety and security and futuristic living facilities attract families, professionals and businessmen, continuously growing the population of the city. This trend is also increasing the demand for both residential and commercial properties in Dubai, creating investment opportunities. Political and economic stability, state-of-the-art infrastructure, feasible business environment, safety and security and exceptional returns are some of the top offerings of Dubai.
Extended Residency Options
People who purchase properties worth at least AED 2 million can also apply for a 10-year renewable visa program called the Dubai Golden Visa. This visa program allows people from various backgrounds such as real estate to stay and work in Dubai for an extended period. A visa holder can simply renew it if he still meets the basic criteria.
Legal Steps for Foreigners Investing in Dubai Property
Eligibility and Ownership Rights In Freehold Areas.
Foreigners can purchase and own freehold properties for sale in Dubai. Properties that are located in designated freehold areas extend full ownership rights to foreign investors. They have complete right to use their purchased properties. They can freely use, lease and sell their purchased properties without any intervention. Popular freehold areas in Dubai include Dubai Marina, Palm Jumeirah, Business Bay, Downtown Dubai, JVC, etc.
Required Legal Documents For Foreigners to Invest In Dubai
Valid passport copy, proof of payment, sales and purchase agreement are normally required to buy property in Dubai as a foreigner. People who intend to buy real estate via mortgage are also required documents like bank statements, proof of income and a pre-approval mortgage letter from a lender. If you are a foreigner, then you should seek the services of a real estate agent and legal advisor to complete the paperwork on your behalf to avoid an unnecessary headache.
Role of RERA and Dubai Land Department (DLD)
Dubai Land Department (DLD) and the Real Estate Regulatory Authority (RERA) are government bodies that oversee Dubai’s property sector. The DLD manages everything from property registration to the issuance of the title deed to transfer the ownership of property. RERA is basically a regulatory body of the DLD. It makes sure that all transactions are transparent and that neither party violates the rights of the other.
Financing Options for Foreigners in Dubai Real Estate
Foreign investors in Dubai can also apply for mortgages and home loans for real estate investment. People just need to meet the lender’s criteria to get a pre-approval and eventually mortgage. Banks also conduct valuation before releasing the loan payment. Mashreq Bank, First Abu Dhabi Bank (FAB) and Abu Dhabi Commercial Bank (ADCB) are some of the popular mortgage lenders in Dubai, UAE.
Best Areas for Foreigners in Dubai
Dubai Marina
Dubai Marina is one of the most sought-after freehold communities in Dubai, offering waterfront properties for sale. Home to over 200 residential towers, Dubai Marina is considered a vertical community. It features lavish living spaces such as villas, apartments and penthouses for sale in Dubai, fascinating people who desire to experience the ultimate luxury and opulence and those who intend to generate exceptional ROI.
Palm Jumeirah
Palm Jumeirah is the world’s largest man-made island development located in Dubai. Developed to redefine the concept of luxury living It is a freehold community that offers both residential and commercial properties. Properties for sale in Palm Jumeirah include waterfront standalone villas, mansions, apartments, penthouses, serviced apartments and office spaces. International buyers who seek ultra-luxury real estate should choose Palm Jumeirah for their investment ventures.
Downtown Dubai
Home to the world’s largest skyscraper- the Burj Khalifa, Dancing Fountain, Dubai Mall and Dubai Opera, Downtown Dubai is a top-ranked neighborhood in Dubai. Located along Sheikh Zayed Road (E311), it is located adjacent to DIFC and Business Bay. Downtown Dubai comes with a range of real estate investment opportunities, such as luxury apartments for sale in Dubai. Considering investors’ interest and investment potential, investing in Downtown Dubai is a decent consideration.
Jumeirah Village Circle (JVC)
Jumeirah Village Circle is a freehold, family-friendly community in Dubai. Located between Al Khail Road (E44) and Sheikh Mohammed Bin Zayed Road (E311), JVC offers a range of investment opportunities such as apartments, villas and townhouses for sale in Dubai. People who are passionate about sustainable and environment-friendly living should consider investing in JVC because it is designed to offer eco-friendly living.
Business Bay
Business Bay is a mixed-use freehold community in Dubai. Located along the banks of the Dubai Canal, this neighborhood is located at a strategic location and offers seamless access to several popular destinations like the Burj Khalifa. Both premium residential and top-class commercial properties are available for sale in Burj Khalifa, making it a suitable investment destination for people who want to enjoy work-life balance and reduce their daily commute time.
Off-Plan Property Investment Guide for Foreigners in Dubai
International investors can also purchase off-plan properties for sale in Dubai. Incomplete or under-construction properties are dubbed off-plan properties. Prices for such properties are quite lower compared to other ready-to-move-in properties. Also, these properties come with attractive and flexible payment plans and offer significant capital appreciation. People who seek long-term gains should also consider investing in Dubai’s off-plan properties.
When you are purchasing an off-plan property for sale in Dubai then you must choose a developer who is registered with RERA. Research the developer and its track record before making any move. Dubai laws also secure your payments as you will have to deposit your payments into an escrow account, offering legal protection and financial security.
Steps to Secure ROI in Dubai Real Estate Investment as a Foreigner
- In the first place, you need to research the market to analyze property trends and the price range of properties in different areas to identify an area that suits your budget and preferences.
- It is very crucial to choose the right location and property type to meet your investment objectives. So, you should consider areas with high occupancy rates and good resale value.
- Get the services of a RERA-certified real estate agent to ensure you are making a profitable investment decision and reduce the risk of mistakes.
- It is better to invest in emerging communities and upcoming projects to capitalize on Dubai’s real estate investment offerings and enjoy strong capital growth.
Conclusion
Dubai’s strategic location, tax-free environment, exceptional rental yields, secure legal framework, residency visa option and freehold properties for sale make it a global real estate investment and business hub. People from all across the globe come to invest in Dubai. One of the key reasons for investment is freehold property ownership rights. Dubai allows foreigners to purchase, completely own and freely use their purchased properties. Areas such as Downtown Dubai, Dubai Marina, Arabian Ranches, JVC, Palm Jumeirah and Dubai Hills Estate are some of the most popular freehold areas in Dubai.
Buying A Home In Dubai? Let’s Make It Simple Together
Kelt and Co Realty is a prominent real estate agency in Dubai. This property company comes with a range of real estate investment opportunities, facilitating both local and international property investors. If you desire to own a home in Dubai then get our assistance to realize your investment objectives. Our real estate professionals are known for offering tailor-made real estate services.
FAQs
Can foreigners buy property in Dubai?
Yes, Foreigners can purchase and even own all types of real estate in Dubai’s freehold areas. Foreigners can enjoy 100% property ownership rights if they purchase real estate in designated areas.
What documents are required for foreigners to buy real estate in Dubai?
A valid passport copy, proof of payment and a signed sales and purchase agreement are normally required to make a purchase in Dubai.
Is there any property tax in Dubai?
Dubai is considered a tax-free city because there is no income tax, capital gain tax, or annual property taxes in Dubai, making it a highly attractive market for real estate investment.