Dubai’s property market is dynamic and alluring, offering unique opportunities. Whether you’re an investor, a future homeowner, or here for market insights, we’re here to guide you on your journey to property ownership in this vibrant city.

Are there any restrictions for foreigners when buying property in Dubai, and if not, what are the required documents for a property purchase?

Anyone, regardless of nationality, can purchase property in Dubai within designated freehold and leasehold developments. Properties can be acquired through primary sales from developers or in the secondary resale market.

To buy a property in the UAE, you’ll need to secure the following documents:

A copy of the sale and purchase contract
A copy of a valid Emirates ID
A copy of a valid passport for non-residents

What is freehold and leasehold?

Freehold ownership in Dubai grants buyers absolute control over both the property and the land it stands on, without time restrictions. As per Dubai’s property ownership laws, the Dubai Land Department registers the buyer’s name as the ‘landowner’ in the official registry and issues a title deed. Freehold property owners have the freedom to remodel or renovate their units, provided they adhere to developer guidelines.

Freehold properties are the top choice for foreign buyers and investors in Dubai, with options in prominent neighborhoods like Dubai Marina, Downtown Dubai, JBR, The Meadows, and The Springs. Recently, even traditionally non-freehold areas, like Jumeirah, have seen the growth of freehold projects such as City Walk and La Mer, broadening choices for foreign nationals.

Leasehold property in Dubai means buying the right to occupy a unit for a fixed period, often 99 years or less, without ownership of the land. Repairs, especially for the property’s structure, are usually the responsibility of the freehold owner, leaving the leaseholder with limited liability.

Is the reservation fee refundable?

The reservation fee is non-refundable.

What occurs when the property I’ve purchased already has a tenant in place?

When you purchase a property with an existing tenant, you inherit both the tenant and the terms of the tenancy agreement. A prorated rent-back amount can be determined as part of the sales contract, and all future rental checks should be made in your name as the new owner. Furthermore, as the new property owner, you must ensure the transfer of the security deposit previously paid by the tenant to the former landlord (seller), making it your responsibility to refund the deposit to the tenant upon their departure. Subsequently, it becomes your responsibility to refund the deposit to the tenant upon their departure.

Are properties in Dubai subject to VAT?

No, VAT is not applicable to residential properties in the UAE.

Do I need to fly to Dubai to finish the purchase?

If you cannot be physically present in Dubai, you have the option to use a Power of Attorney (POA) to purchase property on your behalf. This can be arranged either in person at Dubai Courts, internationally, or remotely online, all from the convenience of your home.

What are the anticipated costs associated with buying a property in Dubai?

In addition to the purchase price, there are several fees that clients are obligated to pay. These costs are not hidden, as they are typically discussed during the property purchase process. In total, these fees can amount to approximately seven percent of the property’s total value. Therefore, they should not be disregarded but rather factored into the overall property acquisition expenses.

Some of these are, but are not limited to:

• Transfer fees, four percent of the purchase price

• DLD appointment fee of Dh4,200 and Dh580 admin fee

• Professional/ Agency fee of two percent plus VAT and Conveyancing Fees.

• Other additional fees, depending on if you are purchasing with finance, will be stipulated in the contract.

Can I get a residency visa if I purchase a property in Dubai?

Purchasing real estate in Dubai can potentially qualify the buyer for a residence permit. Under the UAE investor visa program, the property must be fully constructed at the time of purchase and have a minimum value of AED 1 million.

The visa duration can range from three to five years and remains valid as long as the investor holds property in the country. A three-year visa is granted to those who purchase property valued at AED 1 million or more, while a five-year visa is available for property owners with holdings worth at least AED 5 million.

The property owner has the option to sponsor additional family members, including domestic staff such as maids and drivers. However, it’s important to note that this visa does not grant permission to work in Dubai.

We hope this information has provided valuable insights and guidance for your property-buying journey in Dubai. The Dubai real estate market is filled with opportunities, and with the right knowledge and support, you can make the best investment decisions. Should you have any further questions or need assistance, don’t hesitate to reach out. Best of luck on your path to property ownership in this vibrant city!