Buying property in Dubai sounds exciting but a lack of guidance can lead to costly mistakes and unnecessary stress. Without a doubt, Dubai’s real estate market offers incredible investment opportunities to foreigners. However, this process can be more complicated than it seems. Anyhow, you do not need to worry because here is a step-by-step guide to help foreign property investors buy real estate in Dubai with confidence.
Dubai is a global investment hub. Its strategic location, booming economy, world-class living, investor-friendly policies, tax benefits, long-term residency visas, safe and secure environment, property ownership rights and high investment yield attract global investors. No matter where you are from, Dubai allows you to invest in, purchase and own real estate. As an expat or foreign investor, you can purchase all sorts of residential and commercial real estate in Dubai.
If you desire to own real estate in Dubai and are curious about how to buy property in Dubai as a foreign national then keep reading this investment guide. Consider these easy-to-follow steps to materialize your dream of buying property in Dubai!
Dubai Real Estate Market Overview!
Dubai’s real estate market is growing rapidly, solidifying its standing as a global investment hub. Professionals, businessmen, families and high-profile individuals consider investing in Dubai’s property sector to meet their specific ends. Several factors such as the city’s strategic location, diverse property investment options, including villas for sale in Dubai, penthouses and mansions, off-plan real estate investment opportunities, freehold properties, high rental incomes, tax benefits, Dubai Golden Visa and market resilience build confidence and trust of investors and increase the ratio of property transactions in Dubai.
Benefits Of Buying Property In Dubai As A Foreign Investor:
Competitive Property Prices:
Property prices in Dubai are quite competitive compared to other popular cities like New York and London. It means real estate investment and property ownership in Dubai are easily attainable as compared to other popular cities.
Tax Benefits:
There is no income tax and capital gain tax in Dubai. This city does not levy taxes. On the other hand, residents are bound to pay taxes in cities like New York, London, Singapore, etc. Dubai’s tax incentives not only ensure high returns but also attract potential property investors.
High Rental Yields:
Dubai is also known for offering exceptional rental returns. Property investors generate more returns in Dubai as compared to cities like New York, London and Singapore. The annual rental yield in Dubai remains between 5-9%. However, annual rental returns in London, New York and Singapore are 2-4%, 3-5.3% and 2-3% respectively.
Long-Term Residency Visas:
Property investors in Dubai can also obtain extended residency visas in Dubai if their investments meet the minimum eligibility criteria. If you purchase property worth AED 750,000 then you can get a 3-year renewable residency visa. If you buy a property worth AED 2 million in Dubai then you can obtain a 10-year long renewable residency visa called Dubai Golden Visa.
Step-By-Step Guide To Buying Property In Dubai For Foreign Investors
Research The Market:
Dubai boasts two types of properties: Freehold and leasehold properties. Foreigners can only purchase and own freehold properties located in designated areas. You need to research the market to learn about property prices in a particular area, potential for rental yields and overall market condition. Also, consider factors like the availability of facilities and amenities and proximity to other key areas.For example, Downtown Dubai offers high rental demand, luxury apartments, and attractions like the Burj Khalifa, Dubai Mall, and a vibrant nightlife.
Define Your Budget:
A real estate transaction involves costs like the original price of a property, property registration fees, agency fees, maintenance charges, etc. Evaluate your financial resources and determine a realistic budget by considering all charges involved in a transaction to avoid financial trouble afterward. If needed, you can also consider a home loan or mortgage in Dubai.
Hire A Real Estate Agency:
In order to ensure a smoother and successful investment experience in Dubai, you should hire a real estate professional. Consider a RERA-licensed Real estate agency to make a profitable investment venture. A property expert can help you find the most suitable investment choice based on your preferences and make a profitable investment decision.
Narrow Down Property Options: You can visit multiple properties to find your required one. Once you choose a property that aligns with your needs and preferences then you should inspect it thoroughly. Check the condition of that particular property, availability of amenities and other features.
Extend An Offer: Now you need to negotiate the property price and make a competitive or realistic offer to the property seller. Once both parties agree then sign the Memorandum of Understanding (MoU). (MoU is a document that outlines the terms and conditions of a property transaction). Also, pay 10% of the total amount as a security deposit.
Apply For A No Objection Certificate (NOC): Now you need to obtain a No Objection Certificate (NOC). This document ensures that the property is free from any outstanding dues and disputes and there are no pending charges.
Transfer The Ownership: Prepare documents such as a payable check for the property, original identification documents, original NOC certificate and signed F form. Submit these documents at the DLD office and pay transfer and registration fees. The transfer fee is 4% of the property value and admin fees (AED 2000-4000) are paid. After that, the DLD will issue a title deed in your name as legal proof of ownership.
Summing Up!
Dubai’s competitive property prices, tax benefits, high rental yields, property ownership rights and long-term residency visas make it a preferable investment destination for foreign investors. No matter whether you desire to live a splendid lifestyle or earn exceptional returns out of your investment then Dubai’s real estate is one of the best options to consider for investment. Foreign investors need to research the property market to have market insights. As a foreign investor, you should determine your budget in advance, get the services of a certified real estate agent, choose a property, negotiate the price and then sign the agreement to make a profitable investment decision.
Source: Benefits And Guide to Buying Property in Dubai for US Investors
