Buying a Property in Dubai

Yes, foreigners (either living in Dubai or elsewhere) can buy property in Dubai, as long as it is in a freehold area. Some popular freehold areas in Dubai include Palm Jumeirah, Dubai Marina, Damac Hills, Arabian Ranches, Dubai Hills, Business Bay and Downtown Dubai to name a few. Check the list of freehold areas in Dubai when you’re planning to buy a property in the city.

You can also buy a home in a leasehold property, but this does not mean you own the property outright, rather you get it on a long-term lease, like 99 years for instance. You will be restricted on changes and remodeling as a result. 

No. Non-residents are allowed to own property in the UAE, as long as it is in freehold or leasehold areas. You will automatically be eligible for a UAE residence visa after you buy property here and the length of your visa validity will depend on the cost of your property.

Here’s how the process works:

• Negotiate terms: The buyer and seller agree on terms of sale, such as pricing and payment methods. If you’re applying for a mortgage, you will need to get pre-approval of your mortgage. A contract can be drafted at this stage clearly outlining the terms. 
• Sign the MOU: The buyer and seller sign the sale contract or Memorandum of Understanding (MOU), also known as Form F which is available on the official Dubai Land Development (DLD) website. This is done in the presence of a witness preferably at the office of the Registration Trustee. 
• Pay 10% security deposit: This has to be done at the time of signing the MOU and it is usually refunded after the sale is complete, subject to some conditions.  
• Get an NOC for transfer of ownership to you: This is usually done after confirming that there are no pending bills or charges on the property. 
• Complete the transfer: Head to the DLD office with the following documents: 

• A cheque equal to the price of the property 
• The original NOC issued by the property developer 
• Signed MOU or Form F 
• Original Passport or ID (as well as Residence Visa and Emirates ID if applicable) of the buyer and seller 

Complete the formalities which include a DLD fee after which you will receive the title deed in your name.

In addition to property costs, you will need to set aside funds for government fees and mortgage related fees (if applicable), as follows:

In addition, you may need to factor in real estate agency fees and moving costs. 

UAE nationals and residents can apply for a mortgage. A minimum monthly income of AED 15,000 for salaried individuals and AED 25,000 for self-employed persons is required, but this may vary according to the bank you approach. Non-residents can also apply for a mortgage, as there are banks that offer them this service.

• Identify your lending institution: You can either do the research yourself or work with your agents - McCone Properties has a dedicated Mortgage Service in Dubai that will simplify the process for you. An expert service will ensure that you get the best rates and enjoy a hassle free process. 
• Get your mortgage pre-approved: You will need the following documents for pre-approval:

• • Salary certificate from your employer
  • Salary slips 
  • 6-months’ bank statement 
  • Copy of your passport pages with photo and visa 
  • Copy of your Emirates ID 
  • Credit card statement
  • Address proof 

It usually takes up to a week to get your pre-approval letter, which states your maximum borrowing limit. The letter is valid for 60 or 90 days depending on the bank. 

• Complete the loan procedures: Once you finalize your property you can notify your bank, who will carry out their due diligence. Your mortgage amount will be released to the seller on the last day of your property transfer process.

There are many factors that go into deciding the down payment for your property. The table below breaks it down:

There are many benefits to buying property in Dubai. These include:

• Tax free: There are no property taxes or capital gains taxes for anyone seeking to invest in or resell property in Dubai. In addition, salaries are not taxed. 

• Affordable: Compared to other leading cities in the world such as New York, London, Geneva, Paris, Tokyo and Singapore, property in Dubai is 20-80% cheaper for similar square footage and locations. 
• High standard of living: Dubai has some of the best infrastructure in the world for aviation, ports, industry and more. It has well developed health care, education and transport systems, and the UAE consistently performs high on several quality of life metrics. 
• Safety: The UAE is ranked the second highest country in the world for safety by the World Economic Forum. 

Access to Dubai residency: Owning a home here will automatically make you eligible for a residence visa.