UNITED ARAB EMIRATES

Buying property in Dubai

Buying property in Dubai as a non-resident is an attractive option for foreign investors and expatriates.

Here’s a detailed guide on the property buying process in Dubai: Eligibility for Foreign Buyers

1 Where Can Foreigners Buy Property?
• Freehold Areas: Foreigners are allowed to purchase property in designated freehold areas, which give full ownership rights to the buyer. Popular freehold areas include Downtown Dubai, Dubai Marina, Palm Jumeirah, and Arabian Ranches.
• Leasehold Areas: These provide long-term leases, typically up to 99 years, without full ownership. Leasehold areas are often near central locations, such as Deira and Bur Dubai.

2 Types of Properties:
• Apartments, villas, and townhouses are available, offering a wide variety of options from luxury developments to more affordable choices.

3 Benefits of Buying Property in Dubai
• Tax-Free Environment: There are no property taxes or capital gains taxes, making Dubai an attractive place for investors.
• Visa Incentives: Buying property worth at least AED 1 million qualifies investors for a 3-year residency visa. Larger investments (AED 2 million or more) may lead to 5-year or 10-year visas.

The Property Buying Process
Buying Resale Property (Freehold)
1 Viewing and Inspection:
• We operate a RERA-licensed agency to arrange viewings. Ensure the property has a valid title deed.
The Dubai Land Department (DLD) can authenticate ownership if needed.
2 Agreement for Sale (MOU):
• A deposit (usually 10%) is made upon signing the agreement. If buying directly from the developer, there may be no brokerage fees.
3 Securing Financing:
• If using a mortgage, the buyer's bank will inspect the property for valuation. Foreign buyers often need a 25% down payment.
4 No Objection Certificate (NOC):
• The seller must obtain an NOC from the developer, confirming all fees are cleared. The NOC usually costs a nominal fee.
5 Registration with DLD:
• Both parties must register the property transfer at the DLD. The buyer and seller must be present or represented by a power of attorney.
6 Final Payment and Fees:
• Final payments include the property cost, a 2% brokerage fee, and 4% DLD transfer fee. Additional DLD registration fees apply.
7 Title Deed Issuance:
• Once the payment is cleared, the DLD issues the title deed to the buyer, officially transferring ownership.

Buying Off-Plan Property (From Developer)
1 Inspection and Confirmation:
• Inspect the project site or view plans. Ensure the developer has met RERA regulations, such as having 20% of construction completed or a bank guarantee.
2 Reservation and Deposit:
• Select the unit and pay an initial deposit (10-50%). Payments are often tied to construction progress.
3 Issuance of Sale Agreement (Oqoodi):
• The buyer receives an initial agreement of sale (oqoodi), and the property is registered with the DLD. A 4% transfer fee applies.

Costs and Fees
• DLD Transfer Fee: 4% of the property value (split between buyer and seller).
• Brokerage Fee: Typically, 2% of the property value excluding representation.
• Mortgage Registration Fee: 0.25% of the loan value, if applicable.
• Title Deed Issuance Fee: Around AED 500-4,000 depending on property value.

Legal Requirements
• Documents: A valid passport is required to buy property. Non-residents do not need a residency visa.
• Power of Attorney: Buyers who cannot be present can appoint a representative with a notarized power of attorney.

Post-Purchase Obligations
• Utilities Registration: After acquiring the title deed, register the property with Dubai Electricity and Water Authority (DEWA).
• Annual Fees: Maintenance or service charges are typically paid to the developer or owner’s association annually.
Additional Considerations
• Investment vs. Personal Use: When buying property for rental income, consider the rental yields and property age.
• Off-Plan Risks: Be cautious of delays or cancellations in construction when buying off-plan. Make sure the developer complies with RERA regulations to safeguard your investment.

By following this structured process and working with reputable agents, buying property in Dubai as a non-resident can be a rewarding investment opportunity.

We can search, source, and provide the very best property options available for you before negotiating, securing and moving you in.

To find out more, contact us for further details.