- AX Blog
- Buying real estate in Dubai for foreigners
Buying a home in Dubai can seem like a complicated and almost impossible process. An unfamiliar country, a different culture, a foreign language, incomprehensible legislation, prices in an unusual currency – these are just several reasons that can make even the most determined people change their minds. Everything is much simpler than it seems.
We have compiled a list of the most frequently asked questions about the process of buying an apartment in Dubai, which we are asked regularly, and decided to answer publicly. This is a realistic guide on how to buy property in Dubai as a foreigner. We hope that we can dispel your doubts and resolve all your concerns. If after reading this article you still have questions, please feel free to call us!
Content:
- Can a foreigner buy property in Dubai?
- Can I, as a citizen of a certain country, buy a house in the emirate?
- What documents are needed for this?
- What is the procedure for foreigners acquiring property in Dubai?
- Is it possible to buy an apartment in Dubai on credit or with a mortgage?
- What are the options for buying property in Dubai?
- What rights does a foreigner acquire along with the purchase of housing in Dubai?
- What are the obligations of property owners in Dubai?
- Can I rent out a property I bought in Dubai?
- Are there any restrictions on property ownership in Dubai by foreigners?
1. Can a foreigner buy property in Dubai?
Answer: Of course! According to the decree of 2002, foreigners have the right to purchase housing in the emirate, as long as they comply with the law.
2. Can I, as a citizen of a certain country, buy a house in the emirate?
Answer: One of the most frequent questions we receive is, “How can a citizen of Russia, Ukraine, Kazakhstan, or other CIS countries buy real estate in Dubai?” In the same way as for citizens of other parts of the world, there are no restrictions or concessions for immigrants from the former USSR in Dubai.
3. What documents are needed for this?
Answer: If you purchase housing as an individual, there will be a few documents, such as your passport and ID card, as well as contact details and proof of address (for your place of residence).
If you are going to buy real estate as a legal entity, in addition to the above documents, you will also need a certificate of registration for your company or a trade license, its articles of association, certificate of activity, passports of all shareholders, a decision confirming the purchase, as well as confirmation of authority. All these papers must be translated into English and Arabic and certified by a notary.
To omit the worry about the correctness of the package of documents you have collected, contact a real estate agency for assistance. These specialists will control the entire process and save you from risks and mistakes.
4. What is the procedure for the acquisition of real estate by foreigners in Dubai?
Answer: In a simplified version, the process is as follows;
Firstly, you need to decide on the property (apartment, villa, townhouse, office) and the area in which you would like to live or own real estate. You can choose it yourself or with the help of a realtor.
Secondly, you need to contact the owner or developer and draw up a consent agreement for the transaction. As a rule, a deposit is required at this point to book the property you have selected. This amount is then deducted from the purchase price. When making a preliminary payment, a schedule of subsequent installments is created.
The contract of sale is then drawn up and signed. At this stage, the documents on the use of the property are transferred to the future owner. It is also necessary to obtain the so-called No Objection Certificate (NOC), which is issued to the seller and the buyer by the developer. This document itself confirms that the developer has no claims against the participants in the transaction. Without a NOC, the contract cannot be registered with the Dubai Land Department (DLD). In addition, it is necessary to make sure that there is no encumbrance on the real estate, and that it is in a condition suitable for sale.
The final stage is the final settlement between the parties to the transaction and the transfer of ownership.
5. Can I buy an apartment in Dubai on credit or with a mortgage?
Answer: Yes, of course. The state allows the purchase of property in Dubai by foreigners using borrowed funds, but there are several conditions. Firstly, to obtain a mortgage on housing in Dubai, you must have a loan from a local bank. Secondly, the amount of one payment cannot be more than 50% of your monthly income. Thirdly, half of the cost of the property will need to be paid immediately, so this option is not suitable for those who would like to buy an apartment with minimal initial costs. The loan rate in Dubai is up to 6.5%.
6. What are the options for buying property in Dubai?
Answer: Both residents and foreigners can purchase real estate in the emirate in three forms – while it is still in the project phase (in this case, the seller is always the developer), ready-made primary or secondary properties.
You also need to keep in mind that there are three forms of ownership in Dubai:
- The freehold format assumes that you are the full owner of the property and can dispose of it at your discretion and transfer it by inheritance, which is what we all consider a standard home purchase.
- The leasehold format means that you are renting a property for up to 99 years, but you do not have full ownership.
- There is also a commonhold option, whereby several people are the owners of one property.
The most preferred option for foreigners is the freehold format. It guarantees that nothing will happen to your property. The buyer cannot choose the form of ownership of a particular real estate but can choose a house located in the area of this regulation, but there is no need to worry – all the most popular areas of the emirate among ex-pats choose this format of property ownership.
7. What rights does a foreigner acquire along with the purchase of housing in Dubai?
Answer: Firstly, by purchasing property in Dubai, you can obtain a residence permit for yourself and your family members. According to the DLD, when buying a property worth AED 750,000 ($204,000), the owner can apply for a residence permit for three years, and when purchasing a home worth more than AED 2 million ($544,500) – for 10 years with a possibility of extension.
Homebuyers are exempt from property tax.
8. What are the obligations of property owners in Dubai?
Answer: As a homeowner, you will be required to pay a regular maintenance tax on the building and surrounding area (which will be charged once a year) and pay utility bills.
9. Can I rent out a property I bought in Dubai?
Answer: Yes, of course. You have every right to rent out the property. You can rent real estate yourself for a long-term lease, but for a short-term lease, you need to obtain a special license (your activity is then equated to a hotel’s) or transfer the right to this process to a management company or real estate agency.
10. Are there any restrictions on property ownership in Dubai by foreigners?
Answer: There are no restrictions on the number of purchased properties or the amount of the purchase.
Do you still have concerns? Contact our competent team at the real estate agency in Dubai, AX CAPITAL! We will answer any questions, guide you through the various stages of the purchase and coordinate your steps to make the transaction as easy as possible. We are here to make things easier for you!