Real Estate Ownership Rules for Foreigners in Dubai

• In Dubai, Foreign ownership is permitted in areas designated as freehold. Foreigners and expatriate residents many acquire freehold rights over property without restriction, usufruct rights, or leaseholds rights for up to 99 years
• Article 3 of Regulation No. 3 of 2006 Determining Areas for Ownership by Non-Nationals of Real Property in the Emirate of Dubai (pages 129-132) indicates the land plots designated as freehold properties
• The process of buying property in Dubai is fairly straightforward, foreign buyers simply hold a valid passport. A resident visa is not required 

After the introduction of VAT (Value Added Tax) in the UAE in 2018, Dubai offers tax-free in property which makes property buying easy for foreign property buyers. This factor is highly attracting various foreign home buyers to invest in Dubai Real Estate.  

Investing in Dubai property means surely the investor gets benefited with higher capital appreciation. As the city is receiving higher footfall, the demands for rental property is highly escalating among emirates and the average gross rental yield is between 5-9%. Similarly, villa property offers 6% ROI and the apartment rental yield is up to 7.5 %. Thus, in the case of the investor will get lucrative benefits in the Dubai property market. 

According to Knight Frank’s wealth report 2019, Dubai is the only city that offers affordable prices in the property as compared to other cities.  

Average Price per Sq.Ft of Dubai with 3 major cities

• Shanghai -$ 1,629
• Paris - $ 2,020
• London - $ 2,994
• Dubai -$ 650

This is another advantage of buying property in Dubai, you don’t need to pay an extra buck to get the special privileges as Dubai is the city from where you will not only get the property in the best price along with getting the best facilities for the lifetime. Undoubtedly, for investors, Dubai Property market is the best hotspot with a higher ROI.

Another perk of investing in Dubai Property is the provision of a residential visa to foreigners who have invested at least AED 1 million in a complete freehold property with a valid title deed.

• If the property investment is AED 1 million or above emirates will get 3 years of renewable visa
• If the property investment is AED 5 million emirates will get 5 years of renewable visa
• If the property is investment is AED 2 million or above emirates will get 5 years of renewable visas for retirees over 55 years of age

(Note: This visa is not eligible for those who have invested in off-plan properties)

Dubai Land Department charges 4% of the value of the sale contract as transfer fees whether it is a foreign individual or a company making the purchase. After registration, the property is considered as transferable or immovable real estate which requires payment of a further transfer fee at the Dubai Land Department.