The Dubai Government established rules in 2002 enabling foreigners to purchase freehold property in Dubai, which proved to be a watershed moment in the city’s and country’s real estate markets. Dubai has positioned itself as a worldwide investment centre since then. There has been a constant demand from foreigners interested in buying property in Dubai, including residing expats and non-residents, due to the varied range of homes, excellent ROI, and controlled market.
We’ve put together a brief guide for non-resident international investors interested in buying real estate in Dubai. If you have queries such as, “What are the requirements for non-resident investors?” or ‘Can foreigners purchase property in Dubai?’ Read on to find out the answers to these and other questions!
IS IT POSSIBLE FOR FOREIGNERS TO PURCHASE REAL ESTATE IN DUBAI?
Can foreigners purchase a property in Dubai? is one of the most often asked questions about Dubai’s real estate industry.
Yes, foreign nationals, both expatriate residents and non-resident investors, can acquire freehold property in Dubai. This permits foreign nationals to purchase, sell, or lease property in the United States. Keep in mind, however, that buying property in Dubai as a foreigner on a freehold basis is only permitted in government-designated zones.
FOREIGNER BENEFITS OF BUYING PROPERTY IN DUBAI
Foreigners who purchase property in Dubai have a number of advantages. If you’re considering investing in Dubai’s real estate market, these are some of the benefits you’ll receive in this strategically placed emirate.
PROPERTY PRICES THAT ARE COMPETITIVE
When compared to other major cosmopolitan centres, one of the most attractive features for foreign investors is the low cost of property in Dubai. According to Knight Frank’s 2019 Wealth Report, the average price per square foot in Shanghai is $1,629, $2,020 in Paris, and $2,994 in London, whereas the same figure in Dubai is $650! It’s one of the main reasons why Dubai is the finest destination in the world to buy luxury real estate.
These cheap costs allow foreign investors to get a lot more property for their money while living in a beautiful and safe location with good business infrastructure, a high-end lifestyle, and a cosmopolitan populace.
PROPERTY RENTAL YIELDS ARE EXTREMELY HIGH.
Foreigners who purchase property in Dubai will also profit from strong rental returns. In Dubai, for example, villa properties have a good average ROI of up to 6%, while apartment complexes have rental yields of up to 7.5 percent on average.
THE TAX SYSTEM IS FRIENDLY TO INVESTORS.
The investor-friendly tax structure in place is another advantage for foreigners buying property in Dubai. Currently, there are no taxes on acquired property or rental income in the UAE, allowing foreign investors to make good money on their investments.
A RESIDENCE VISA CAN BE OBTAINED BY INVESTORS.
Foreign people who want to live in the UAE might get a residency visa by investing in real estate. For example, with the introduction of long-term visas in the UAE, real estate investors with property valued at AED 5 million (USD 1.36 million) can apply for a five-year resident visa if they fulfil the other requirements.
Alternatively, Dubai Tourism has developed the Retire in Dubai initiative in collaboration with the General Directorate for Residency and International Affairs (GDRFA), which allows foreign citizens over the age of 55 to acquire a five-year residency visa if they own property worth AED 2 million (USD 544.5k).
As a result, foreigners who buy property in Dubai may be able to get a resident visa and enjoy life in a global centre.
AN EXTENSIVE RANGE OF PROPERTY MANAGEMENT SERVICES ARE AVAILABLE.
Property management firms may help foreign nationals who are buying property in Dubai solely for investment motives maintain their property and handle legalities.
In Dubai, there are a variety of property management firms that provide a wide range of services. These might include, but are not limited to, locating tenants, maintaining the property, collecting rent, and giving frequent updates and financial reports.
Our property management recommendations in Dubai can help foreign investors find the best firm to handle their properties in the city.
WHAT ARE THE CRITERIA FOR FOREIGNERS BUYING REAL ESTATE IN DUBAI?
As previously said, the property market in Dubai is open to non-resident investors, which means that a residency visa is not required when purchasing property. When buying property in Dubai, however, they must have a valid passport to prove their identification.
Are you wondering if foreigners may acquire a loan in Dubai? Foreigners can also receive a mortgage from banks in the UAE if they buy property in Dubai. Keep in mind, however, that they will have fewer alternatives than expats and UAE nationals. The qualifying requirements for non-resident mortgages in Dubai vary per bank and might include things like country of residency, monthly income, and more. Bank statements and evidence of employment status are among the papers required for non-residents to get a Dubai mortgage.
This ends our advice for international investors looking to buy property in Dubai. With our dedicated guide, you can discover more about the procedure and expenses of buying property in Dubai. You must also be aware of specific regulations while purchasing property in Dubai as a foreigner.
Take a deeper look at the benefits and drawbacks of owning property in Dubai if you’re considering investing in the emirate’s real estate market. Once you’ve made the decision to invest in Dubai, you can search Bayut’s extensive inventory of apartments and villas for sale in Dubai to find the ideal property for you.
In 2019, Abu Dhabi, the UAE’s capital, opened its freehold market to international investors. Learn about Abu Dhabi’s most popular freehold districts and the sorts of properties available in these projects.
Keep an eye on Chiragh for additional information about purchasing and investing in real estate in Dubai.