How to Buy Property in Dubai If You’re Not A Resident?

There is a reason why international investors are increasingly attracted to the real estate market in Dubai. They want to buy property in Dubai because of high rental yields, tax-free living, and a dynamic environment. However, you may get caught up in the confusing procedure as a non-resident. In this blog, we will give you comprehensive guidance regarding investing in properties in Dubai. 

Is Dubai a Good Place to Live?

Are you looking to buy an apartment in Dubai? As an individual holding foreign ownership, you can gain access to the Dubai property market in designated freehold areas. Expatriate and foreign residents have leasehold rights of 99 years. For this purpose, they can enjoy freehold ownership rights without legal restrictions. 

Regulation No. 3 of 2006 of Article 3 Determining Areas for Ownership by Non-Nationals of Real Property in the Emirate of Dubai (pages 129-132) points the designated land plots as freehold properties. The Emirate Land Department issues the title deeds regarding buying properties in Dubai. Furthermore, there is no restriction while owning property in Dubai regardless of age. According to Article 4 of the Dubai Property Registration Law, A non-UAE national may invest in properties in Dubai as a leasehold or freehold. This article reads as follows:

“The right to own Real Property in the Emirate shall be restricted to UAE nationals, nationals of the Gulf Cooperation Council States, companies fully owned by these nations, and public joint stock companies. Subject to the approval of the Ruler, non-UAE nationals may be granted the following rights in the relevant areas determined by the Ruler:

a. Freehold ownership of Real Property, without time restrictions; and

b. Usufruct or lease rights in Real Property for up to ninety-nine (99) years.”

His Highness the Ruler of Dubai has issued resolutions following Article 4 provisions. These help demarcate and identify the Emirate of Dubai’s specific areas. Here non-UAE-nationals may have (i) real property freehold ownership and (ii) lease rights or usufruct rights (right to build) in properties in Dubai for 99 years. 

Requirements to Buy Properties in Dubai

Buying a property in Dubai is similar to purchasing real estate properties in the world’s Western countries, as of January 2024. If you are a resident you can successfully get the ownership navigating the sales process. While investing in properties in Dubai you do not have to face any restrictions according to age. 

On the other hand, you can enjoy a leasehold for up to 99 years by acquiring restriction-free freehold ownership. Furthermore, you do not require any visa to buy property in Dubai. It is mentioned in the Emirate of Dubai’s document known as Article 3 of Regulation No. 3 of 2006 Determining Areas of Ownership by Non-Nationals of Real Property, outlined on pages 129 to 132.

According to it, you may buy an apartment or property in Dubai as a freehold on a new title deed. If you do not have a nationality of UAE, even then you can invest in Dubai to buy property/ies in leasehold/freehold areas.

If you are a nonresident and you cannot travel due to some reasons, then also you can access the Dubai property market to buy properties. Rather, he can choose a friend to act on his behalf for issuing power of attorney (PoA). 

Furthermore, they may also ask a law firm in Dubai to draft a power of attorney (PoA). Then for attestation and execution, you may also approach your country’s notary public. Hence, the notarized PoA requires your country’s foreign ministry to attest or apostille it.

Then the process follows with the UAE Consulate/Embassy of your country. Once the entire process of buying property in Dubai is complete, you need to send the original power of attorney (PoA). 

Once received, you may approach the Ministry of Foreign Affairs and International Co-operation in UAE for attestation. If the language of PoA is non-Arabic, it must be stamped by her/him and translated legally approved translator.

Then the PoA’s legal translation needs to be attested by the UAE’s Ministry of Justice when you apply for it via its web portal. Once you have completed all the formalities of buying a property in Dubai, you may complete the purchase transaction. 

Paying Tax While Buying A Property in Dubai

Are you planning to buy an apartment or property in Dubai? In a traditional sense, you do not have to pay taxes. It is one of the advantages that you may not enjoy anywhere when you invest in Dubai properties. This is one of the key benefits you reap when you choose the Dubai property market to buy property. Even though foreign investors may have to pay income tax from their resident country, provided they do not reside in Dubai. 

But there is a chunk, you have to pay a transfer fee of 4% to the Dubai Land Department, once you have transferred properties in Dubai to them. Furthermore, you also have to pay a ‘housing fee’ monthly, equal to 5% of the area’s average rental value. However, this also benefits investors in the form of big profits. They may end up availing the area’s property opportunities. Comparing this with other countries, you may pay up to $700,000 according to the value, state, and region of the property. 

1. United Kingdom (UK): 

Buying property in the United Kingdom (UK) is comparatively different than in Dubai. The cost of purchasing property is £18,700, which includes 28% capital gains tax and 12% stamp duty. It depends on whether you are buying property in the UK for the first time and your income. Furthermore, other aspects to consider include survey costs, legal fees, and inspection fees. 

2. United States (US): 

You should pay $ 31,500 if you want to invest in US-based properties. This includes appraisal fees with a 5% average, transfer fees, attorney fees, and title insurance for 2% of property value. 

3. Australia (AUS): 

If you are considering investing in properties in Australia, you have to consider many things. These include fees for inspection, legal, and application. You should have an amount of AUD 29,000, which further includes 5.5% of the property value. 

4. Japan: 

In Japan you need to have an amount of $35,000, to buy property. However, there are many kinds of taxes that you need to consider. These include 3% city planning tax, 3% assessed property value, real estate agent fees, and 2% license tax.

5. Dubai: 

Considering the above example of countries, Dubai seems to be a cheaper alternative. This is because all you need to pay is $28,000 if you have the desire and keen interest in buying a property in Dubai. Hence, for this purpose, foreign investors love buying property in Dubai because of low taxation. Furthermore, investing in properties and apartments in Dubai can also lead you to availing good rental returns. This may give you a chance to consider the Dubai property market, as your next source of income. 

Buying Property in Dubai Without an Agent

Do you consider investing in apartments and properties in Dubai without an agent? Even though it is not a recommended move, however, if you desire to do so, you can. But there is a reason behind why you should not make such a move.

It is necessary to know how the Dubai property market operates locally. You also need comprehensive knowledge of legalities regarding property transactions in Dubai. Some of the steps you should follow for buying properties in Dubai without involving an agent are mentioned below: 

1. Identify a Property: 

If you want to buy property in Dubai without involving an agent, research freehold areas. For this purpose, there are many online resources available that you can browse for free. Here you can weigh the pros and cons, compare prices, and explore the facilities offered by different neighborhoods.

2. Negotiate: 

The second step for buying property in Dubai comes in the form of negotiation. Once you have chosen the property or apartment in Dubai, directly contact the seller. For the final price and terms of sale, be willing to negotiate with the selling party. 

3. Draft a Memorandum of Understanding (MOU): 

Once both parties have reached an agreement, draft a Memorandum of Understanding (MOU). It should mention the conditions and terms of sale.

4. Pay the Deposit: 

The next step regarding investing in properties in Dubai is to pay the deposit. As a rule of thumb, you have to pay 10% as a deposit of the actual purchase price. 

5. Finalizing the Sale: 

Once the above-mentioned steps regarding buying a property in Dubai are complete, the last step is to approach the Dubai Land Department (DLD). You have to accompany the seller to DLD so that property transactions are approved and finalized. 

Criteria for The Right Property Offer

There are many townhouses, apartments, and villas for sale in Dubai’s freehold areas. You can choose from many communities and developers. If you are serious about buying an apartment or property in Dubai, you can access online Dubai listings. All you have to do is to consider a few things and criteria for starting the process.

Townhouse, Villa, or Apartment

Townhouses, villas, or apartments are focused near the coast, main highway, or Sheikh Zayed Road. These include Jumeirah Lake Towers, Dubai Marina, Greens, and Jumeirah Beach Residence. Even though very limited in numbers, a few villas are also situated near the coastline. However, this is not something you should do if you plan on buying a property in Dubai. This is because, properties like these may not be available for sale, since they are in limited amounts. 

On the other hand, townhouses and villas are situated inland from the coast. These communities include Springs, Meadows, and Emirates Hills. Furthermore, when you go inland further, you will also find villa communities there. These include Jumeirah Village Circle, Dubai Sports City, and Arabian Ranches. Many inner communities such as Dubai Motor City and Jumeirah Village Circle known for hosting various apartment buildings.

Are You Off-Plan Or Ready To Move In?

Both the townhouses/villas and apartments can be availed as off-plan investments. However, you can buy these properties in Dubai usually at attractive prices. The developer will display floor plans for available units as well as for the overall community. A few developers may display a villa or flat for demonstration purposes according to fit-out and space type. 

The Risk Involved in Choosing Off-Plan Properties:

When buying an apartment in Dubai, delays in handover and construction are common aspects. It may also lead to the cancelation or stopping of an entire project. Hence, construction progress is a necessary aspect to consider while paying for off-plan properties. There are many schemes that different developers offer to the clients. These are necessary to avoid while investing in off-plan projects in the Dubai property market: 

An investment to rent out, or a family home?

If you want to invest in Dubai by buying the property, use Dubai Land Department’s Rental Calculator and Property Monitor’s Rental Index. These are helpful tools that help determine rental yields throughout diverse communities. Furthermore, you also have to consider a villa or apartment building’s age, as this may impact the property’s resale value. 

If the intended property in Dubai is a family home, one of the key criteria that you should consider is the location. You have to consider aspects such as availability of parking in the community, proximity to the place of work, proximity to schools of choice, and rush hour traffic (if any). 

1. Parking 

Communities like JLT and Dubai Marina consider parking, as one of its key aspects. Look for the available parking spots when you plan to invest in properties in Dubai. These include both paid and free parking facilities available in the community. 

2. Public transport in Dubai

Another aspect to consider while purchasing properties in Dubai is to look for availability of public transport. These include a network of busses, Dubai Metro, and Dubai Tram to name a few. 

3. Facilities and Services

When you buy property/ies in Dubai, ensure you can access facilities and services easily. These include parks, supermarkets, and clinics nearest to your location. 

4. Maintenance and Cleanliness

Quality maintenance and cleanliness are among the key aspects to consider while buying an apartment or any other property in Dubai. These show how the communities care about the amenities they are provided. Speaking of amenities, these include a ballroom, gym, play area for children, swimming pools, etc. 

5. Services or Community Maintenance Fees

The purpose of services or community maintenance fees is to ensure the community is upgraded regularly. These also include salaries for maintenance staff, cleaners, and security guards. When buying property in Dubai, some owners/developers’ associations charge upfront annual fees. On the other hand, some may charge upfront on a quarterly or monthly basis. 

6. Air Conditioner or ‘Chiller’ Fees

When you buy an apartment in Dubai, a few buildings take the minimum monthly fee. It does not matter whether you use air conditioning services or not. 

7. Community Rules 

A few apartment buildings or communities can regulate inopportune laws. These include restrictions around independent handymen or using service elevators. Some communities of villas impose renovation restrictions. 

Significance of the Community/Developer

Research community or the developer on the Internet to understand the completed project scale. Especially this research can play a useful role if you want to invest in Dubai’s new properties and communities. These include access to supermarkets, electricity and water, and community clubhouses. A few major developers relevant in the Dubai property market include DAMAC Properties, Emaar, Nakheel, and Meraas.

Where to buy property in Dubai?

New investors are offered a variety of world-class developments while buying property in Dubai. But how to find the properties that are best for you? There are many aspects to consider if you want to invest in the Dubai property market. These include income potential, budget, and lifestyle appeal. So, in this blog, we also include the best Dubai spots you cannot afford to miss out. 

1. Palm Jumeirah

 The first option if you want to opt to buy a property in Dubai is Palm Jumeriah. It was constructed during 2001 and 2006, as a series of man-made islands in the Persian Gulf. It features a mix of residential and commercial units. Tourists and investors are especially attracted to the Palm Jumeirah. When you buy an apartment in Palm Jumeirah, Dubai, the average sale price is 3.4 million AED. The equivalent price in terms of UK and US currency is £789,000 or $926,000 respectively. Hence, you can safely say that Palm Jumeirah is Dubai’s most expensive region.

On the other hand, if you want to buy a garden home, the average selling price is 18.5 million AED. This equivalent amount is £4.3 million and $5 million respectively for UK and US currency. One of the main reasons to choose Palm Jumeirah, while buying property in Dubai is its touristic nature. 

2. CityWalk Dubai

The next option to choose if you are thinking of buying an apartment in Dubai. It is situated in the heart of Dubai, currently managed by Merex. Furthermore, Meraas was the company that initiated the CityWalk Dubai project. It features a shopping center and a bustling neighborhood. CityWalk Dubai is known for its combination of comfort and luxury. Investors and tourists both prefer and rank it among the best properties in Dubai. It also features various amenities that blend outdoor lifestyle options with modern architecture. 

3. Jumeirah Beach Residence

The project of Jumeirah Beach Residence (JBR) features a famous waterfront community. It was completed in the year 2010 and is located against Dubai Marina’s Persian Gulf. Jumeirah Beach Residence (JBR) spans around a scenic shoreline of 1.7kms. If you want to buy property in Dubai, JBR provides you with the feel of a beach resort and a lively urban lifestyle. 

This residential development features 40 towers hosting hotel and residential units. Jumeirah Beach Residence (JBR) is known for its luxurious amenities and panoramic views. It is equally popular among residents and tourists alike. And this is what makes JBR one of the best reasons to invest in Dubai. Here you can find urban convenience and beachside living as one of the key features. 

4. Dubai Marina

Another option if you are looking to invest in Dubai to buy properties is to choose Dubai Marina. As a prestigious waterfront community, it features sophisticated penthouses and high-rise apartments. Here you can find a lively promenade and yachts as well as retail, dining, and entertainment options. If you desire to upscale an urban lifestyle, choose Dubai Marina to buy a property in Dubai.  

5. Arabian Ranches

The fifth option if you desire to invest in properties in Dubai is Arabian Ranches. It is among the most exclusive residential communities. It is known for its scenic and tranquil suburban development. Arabian Ranches features serene landscapes and lush greenery that offer an escape from the hustle of the city. 

Here you can find spacious townhouses and villas with world-class amenities. These include community parks, golf courses, and equestrian centers. Arabian Ranches are designed ideally for those desiring relaxation and families. If you desire upscaling your lifestyle then Arabian Ranches is a wonderful choice. 

Also Read: A Guide to Tenants’ Rights in Dubai

Conclusion 

As an international investor, there are many advantages to investing in properties in Dubai. It combines a streamlined process of ownership with attractive financial incentives. Whether you want to buy property in Dubai for family or rental income, there is no better decision to choose Dubai.

The biggest advantage of choosing this destination is its modern infrastructure and diverse property options. Some of the best properties to invest in include Arabian Ranches, Palm Jumeirah, Jumeirah Beach Residence, Dubai Marina, and CityWalk Dubai. To make informed decisions regarding investing in properties in Dubai, having many amenities.

These include community facilities, parking availability, and public transport. Furthermore, you also need to keep yourself updated with community rules and maintenance charges.