Real estate remains a popular investment option, with one survey placing it as the top asset to invest in, outranking stocks, gold, and savings accounts.
But what makes real estate a popular investment option? For one, properties are known for their steady appreciation. In addition, their values tend to increase over time, and you can generate passive income when you turn them into rental homes.
Properties for sale in Dubai also provide diversification in an investment portfolio, allowing you to spread potential risk.
But can foreigners buy property in Dubai? If you are an expat and you want to invest in real estate in this city, this guide will answer this question, plus other ones to help you make wise investment decisions.
Can Foreigners Own Property in Dubai?
Since 2002, the Dubai government has allowed foreigners – both residing expats and non-residing foreign investors – to own properties in the city. However, you can only buy property in a freehold area.
Freehold areas are specially designated zones in Dubai where foreigners can fully own the property they purchase. You can buy, sell, lease, and rent the property or transfer its ownership to your spouse or children as long as you meet the requirements.
Where Can Foreigners Buy Property in Dubai?
Below are the most popular freehold areas in Dubai where you can invest in property:
1. Dubai Marina
This waterfront community is known for high-end apartments and villas, upscale amenities, and gorgeous skyline views. When you buy property in Dubai Marina, you can enjoy a luxurious lifestyle and expect high rental yields when you invest here.
2. Palm Jumeirah
Palm Jumeirah is another freehold community where you can enjoy the best of waterfront living in Dubai. Properties for sale in Palm Jumeirah are great options to turn into holiday rentals.
3. Jumeirah Beach Residence (JBR)
This community is known for its beachfront lifestyle and vibrant atmosphere. The wide array of properties for sale in Jumeirah Beach Residence, dining options, shops, and waterfront views make it a prime spot for investing in a residential property.
4. Jumeirah Village Circle (JVC)
This family-friendly community has a variety of reasonably priced homes. Properties for sale in Jumeirah Village Circle promise high ROIs and a pleasant, comfortable lifestyle.
5. DAMAC Hills
Properties for sale in DAMAC Hills are located around a world-class golf course. The gated community’s beautiful landscapes and family-friendly amenities make it another excellent option for foreign investors.
With different property options to choose from, you can find one that works with your budget and meets your investment goals.
What Are the Types of Properties You Can Buy in Dubai?
The Dubai property law for foreigners allows you to invest in the following property types:
Residential properties
As a foreigner in Dubai, you can buy an apartment, villa, townhouse, or residential plots of land in a freehold area. You can live in or turn the property into a short-term or long-term rental home. You can also sell it whenever you see fit.
Commercial property
You can own office and retail spaces, warehouses, and other commercial properties in a freehold area. You can use the area or building for your own business operations or needs or rent it out to tenants for rental income.
You can invest in both ready and off-plan properties.
Ready properties are properties that are completed. Owners or tenants can move in or use them immediately.
On the other hand, off-plan properties in Dubai are those that are still being constructed. They are either in the early planning or construction stages but have an expected date for completion.
Why Should You Consider Investing in Real Estate in Dubai?
In addition to having complete ownership of a residential or commercial property, you can enjoy these benefits when you invest in real estate in Dubai:
1. Transferable property
As mentioned, you can transfer ownership of the property to your spouse, children, and other people as long as you meet the requirements. You can also divide it across several heirs when needed.
2. Tax and lease renewal benefits
The United Arab Emirates does not impose taxes on purchased properties and rental income. There are also no lease renewal or extension fees placed on freehold properties. As such, you won’t have to worry about these additional expenses.
3. Rental yields
If you’re investing in residential property to turn into a rental, you can expect high returns. For instance, a one-bedroom unit in Dubai Marina has an expected ROI of 13.43%. A studio-type villa in Jumeirah Village Circle (JVC) has an ROI of 8.79%.
4. Opportunity to acquire a residence visa
Real estate is one of the best investments in the UAE for expats and non-residing investors because it makes you eligible for a residence visa. You can obtain a three-year residence visa when you purchase property worth at least AED 750,000.
You also have the chance to obtain a 10-year Golden visa when you invest in property worth at least AED 2M. When you have a Golden visa, you can easily sponsor your spouse, children, and parents.
These benefits make buying property in the UAE for expats and non-residing foreigners a smart decision.
What Are the Requirements for Foreign Investors?
If you’re an expat residing in Dubai, you must have a valid passport and residence visa issued by the UAE government. You may also need to show proof of income, which should meet the minimum requirement set by the real estate developer.
If you’re not residing in Dubai, you should have a valid passport, which you need for identity confirmation. You don’t need to hold a residence visa to buy property here.
Whether you’re a resident or not, you can apply for a mortgage from a bank or lending company to buy property in Dubai. However, if you’re a non-residing foreigner, you may have limited choices in terms of providers and rates. You may also need to submit more requirements.
What’s Next?
If you’re ready to buy property in Dubai, get in touch with us. We’ll help you find the ideal property and guide you through the entire investment process.
