Property Buying Process in Dubai

Many people dream of living in a new country for a better life, exciting experiences, or business ventures. Buying property abroad can be a smart way to achieve these goals. It can give you residency rights and be a profitable investment, especially in a thriving and developed region like the United Arab Emirates. This guide focuses on things to know before buying property in Dubai. We hope the information helps you come to a well-informed and rewarding decision.

Features and rules for buying property in Dubai for foreigners

Dubai’s real estate laws invite international investors, allowing them to own various properties such as apartments, townhouses, and villas. However, it’s essential for non-residents to understand certain specific rules and restrictions:

Ownership rights. Non-residents are entitled to full ownership of properties and the land they stand on in designated zones. Dubai offers 50 zones where foreigners can purchase specific types of housing. For instance, apartments can be bought in Jumeirah Beach Residence, while villa purchases are available in Emirates Hills.
Purchasing process. The property acquisition is generally clear and straightforward. It involves object selection, negotiation, deposit payment, document preparation, and transaction registration with the Dubai Land Department.
Financing options. Dubai banks offer mortgages to non-residents, though the terms may vary from those for residents. These typically finance between 25% and 50% of the property’s value at higher interest rates.
Residency obtainment. Purchasing real estate can lead to obtaining a long-term visa, the duration of which depends on the property’s value, making it an attractive option for those seeking residency.

Guide to buying property in Dubai: paperwork, taxes, prices

When going through the process of buying a property in Dubai, non-residents must prepare a specific set of documents, which may vary slightly by property, developer, or seller:

valid international passport;
valid UAE visa (often obtainable upon arrival);
health insurance;
power of attorney (optional);
bank statement (optional).

For secondary real estate, documents like the developer’s No Objection Certificate and the Memorandum of Understanding between buyer and seller are required. An Initial Contract of Sale is necessary for under-construction properties.

The second aspect we want to cover in our Dubai property buying guide is taxes. The local real estate market is appealing due to its low tax burden. There are no personal income or property taxes. Real estate purchases incur a one-time transfer tax of about 4% of the property’s value, with additional registration and certificate issue fees.

As for real estate prices in Dubai, they vary widely according to the type and location. Villas typically cost more than apartments, with premium areas like Downtown Dubai and Palm Jumeirah commanding higher prices. More economical options are available in places like Motor City and Arjan. Average prices are around USD 3,000 per square meter.

Dubai property: buying advice for non-residents

Acquiring real estate is a significant investment, necessitating careful consideration of several factors. Follow these guidelines for a successful purchase:

Define your needs. Determine the type of real estate you require, the desired area, preferred neighborhoods, and your budget.
Research market trends. Look into current property prices in your preferred areas. Pay attention to market trends and the area’s potential.
Choose a reputable developer. Ensure the developer has a strong reputation and proven track record.
Inspect properties in person, if possible. Visit the properties to evaluate their condition, construction quality, and neighborhood infrastructure.
Verify legal documentation. Confirm that the real estate has all certificates, licenses, and permits. Check for any encumbrances or unpaid taxes on the real estate.
Consider extra costs. Factor in expenses such as taxes, registration fees, insurance, and maintenance charges.

At Seven Lands, we understand that finding and purchasing the perfect property can be complex. We are here to guide you through every step, from giving you advice on buying an apartment in Dubai to providing support to ensure a smooth and secure purchase.