Can Expats Buy a Property in Dubai?

In 2002, the government of Dubai passed laws regarding expats and foreigners owning real estate in freehold areas of Dubai. This initiative has changed the real estate landscape of Dubai and made it the global hub for property investment. Due to the healthy ROI, a diverse range of properties, and regulations, this question is often asked “Can expats buy property in Dubai?’ and the answer is Yes! This blog will discuss everything you need to know about expats buying a property in Dubai and reaping from investing in Dubai’s real estate. 

Can Foreigners or Expats Buy a Property In Dubai?

One of the most asked questions in the Dubai real estate market is, “Can a foreigner or expat buy properties in Dubai?” People are concerned about whether investing or buying properties in Dubai as a foreigner and expat is beneficial and feasible in the long run. After introducing the 2002 law for foreigners’ property ownership, it becomes very easy for expats and foreigners to buy, sell, and lease property in the freehold areas of Dubai. However, these freehold areas are only assigned by the government. 

What Is The Eligibility Criteria For Expats Buying Property In Dubai?

Dubai is an open market for foreign investment, which means that a residency visa is not required to buy properties in the city. However, it is compulsory to hold a valid passport when buying or selling a property to confirm your identity. To buy a property in Dubai as an expat, you need to apply for a mortgage. There are some paperwork and requirements that must be submitted to obtain a mortgage. 

For Salaried Persons

• Passport and Emirates ID
• Salary certificate addressed to Emirates NBD
• Bank statement for the last 6 months
• Pay slips for the last 6 months if pay varies more than 10%

For Self-employed Persons

• Passport and Emirates ID
• Copy of Trade License
• MOA (Memorandum of Association)
• Bank statement for the last 6 months
• Audited company financials for the last two years

Types of Real Estate Ownership for Dubai Expats

There are two types of ownership that an expat can have in Dubai’s real estate.

Leasehold Property Ownership

Leasehold property ownership means that the property can only be leased by its owner for a time period of 10 to 99 years. In this type of ownership, the buyer only has the right to the unit and not the land of the property. If the buyer wants to make changes to the property, such as remodelling, repairments, alterations or anything else, he/she has to get permission from the freehold owner of the property. Some popular leasehold areas for expats are Jumeirah, Al Barsha, Mirdif, and Al Warqaa.

Freehold Property Ownership

In Freehold property ownership, the buyer will have complete ownership of the property, including the land that the unit stands on. DLD (Dubai Land Department) will register the property in the name of the new owner and grant the title deed of the property. Then, it is up to the new owner to lease, sell, or occupy the property as per his/her will. Expats can buy a property in freehold areas specified by Dubai’s government, including Dubai Hills Estate, Downtown Dubai, Arabian Ranches and Dubai Marina.

Why Expats Should Buy Properties in Dubai?

There are various reasons why an expat should buy a property in Dubai. Investing in the real estate sector of Dubai can bring the following benefits to the expats.

Competitive Property Prices

One of the biggest advantages of buying a property in Dubai is that it offers competitive property prices compared to the major cities in the world. So, for an expat, this would help you gain more value for your money, as well as enjoy a high-end lifestyle and excellent infrastructure in Dubai. That is the reason why Dubai is a hotspot to buy luxury properties in the world.

High Rental Yields For Properties

When expats or foreign investors buy properties in Dubai, they will have a chance to benefit from the higher ROI and rental yields on their investments. For example, a villa in Dubai can give a healthy ROI of up to 8%, while an apartment can have a rental yield of up to 11% on average.

The Tax-Free System

The tax-free environment of Dubai can be very lucrative for those expats who want to invest or buy a property in Dubai. Currently, there is no tax on the purchase of property or rental income, which allows foreign investors to gain handsome returns on their investments.

Foreign Investors Can Obtain A Golden Visa

For foreign investors, buying a property in Dubai can allow you to have a residency visa. Since the introduction of the Golden Visa, if someone invests in the real estate sector of Dubai with a property worth AED 2M or more, he/she will be eligible for a 10-year residence visa upon meeting the criteria. Moreover, the General Directorate for Residency and Foreign Affairs (GDRFA) has launched a retirement programme for expats in Dubai in which if they are above the age of 55 years and own a property in Dubai worth AED 1M or more, they can obtain a five-year residence visa.

Buying a property in Dubai is an excellent option for expats who want to settle down in the Emirate. Depending on the value of the property, it is one of the best ways an expatriate can use to become a citizen in Dubai. If you are an expat and looking to buy a property in Dubai, contact us now.