Real Estate Ownership Rules for Foreigners in Dubai
If you are planning to buy a property in Dubai then the country is allowing foreigners to obtain their dream home with certain rules. Read the blog to get it in more detail.
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Dubai, the island of luxury is alternatively known as the dreamland for all. The city receives higher footfall for serving extravagant lifestyle and indulgence. The Burj Khalifa is the major attraction of this city, known as the world’s tallest building. Not only does the city’s luxury lifestyle offer a grandeur lifestyle but also its culture, trade and commerce widely attract people across the globe.
Discovering this city will always be left you speechless and if you are emirate and wishing to relocate to this beautiful city and planning to purchase an address then you’ve to follow certain real estate ownership rules introduced by Dubai Land Department. Let’s understand the rules thoroughly.
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Foreign Ownership Law in the UAE
- 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
THE TAX SYSTEM IS INVESTOR-FRIENDLY
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.
HIGH RENTAL YIELDS FOR PROPERTIES
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.
COMPETITIVE PROPERTY PRICES
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.
INVESTORS CAN OBTAIN A RESIDENCE VISA
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.
Residential visas are available for foreigners in Dubai based on their property investment: -
- 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)
TRANSFER FEES
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.
