Dubai has become one of the most affordable locations for international investors to find solid roots for property investment. This global city boasts a unique, futuristic skyline, a zero-income tax rate, favourable returns as a rental property, and numerous investor-friendly policies, which explain why global buyers are interested in owning a property in the city. Among the most frequently asked questions we receive is: Is it possible to purchase real estate in Dubai without a residency permit?
The response is a definite yes. The government of Dubai has ensured that it is transparent and straightforward to foreigners, including those without a residency visa. This blog will guide you through the process of purchasing a non-resident property in Dubai, the relevant laws and regulations that support property ownership, and how to make your dream of owning a property in Dubai a reality.
Are those Non-Residents allowed to purchase under Dubai?
Non-residents are also allowed to purchase properties in Dubai. The Dubai government has permitted non-nationals to buy, sell, lease, or rent in marked freehold lands since 2002, without requiring them to become UAE citizens or residents. This open policy has ensured that Dubai currently has one of the most open property markets for foreign investors.
Nevertheless, it is essential to understand the specific Dubai laws and procedures involved, which will make the transaction smoother.
The Important Terms to Know
It is necessary to familiarise yourself with two key words of the property market in Dubai before entering the process:
Freehold Property:
Freehold property is a type of property where the customer owns both the land and the unit they are building. These are available to non-residential purchasers.
Leasehold Property:
What is categorised as Leasehold is that which has only finite ownership (with a maximum of 10 to 99 years). The buyer does not own the land; they are only using the property during the lease term.
Being a non-resident permits you to purchase freehold properties only in specific areas, such as the famous locations like Downtown Dubai, Dubai Marina, Palm Jumeirah, Jumeirah Village Circle (JVC), and Business Bay.
Foreign Buyer Dubai Real Estate Laws
The following are some of the main Dubai real estate regulations that should be known to the non-resident buyers:
- Eligibility: No restrictions on nationality. Every non-national aged 21 years or above can purchase a property in Dubai, provided it is located in a freehold area.
- Ownership Rights: UAE nationals enjoy the same ownership rights to freehold areas as non-residents.
- No Visa Required: No residency visa is required to own a property. However, depending on the value of the property, long-term residence visas may be granted to the property owners.
- Property Registration: Any property being purchased has to be registered using the Dubai Land Department (DLD), and the buyer would be expected to pay a specific amount of fees (perhaps 4 % of the property value).
- Off-Plan Purchases: Additionally, non-residents can purchase off-plan (under-construction) properties, often on flexible payment plans, which are purchased directly through developers.
Such laws classify that the process of buying property in Dubai by a non-resident is not only legal but also safe and well-regulated.
A Buying Guide on How to Buy Property in Dubai as a Non-Resident
This is how one can purchase real estate in Dubai even without possessing a residence visa:
- Select the Adequate Place and Building
Homes in freehold domains are available to foreigners. Consider how you will utilise the purchased property: do you aim for high rental returns, a long-term investment, or a vacation home?
- Hire a Registered Real Estate Agent
Using the services of a Real Estate Regulatory Agency (RERA)-licensed broker will reduce the chances of arbitrariness and law-breaking. They include market reviews, meetings and visits, and negotiations as elements that agents can assist with.
- Sign the Agreement of Sale
After selecting the property of choice, a Memorandum of Understanding (MoU) will be signed between the buyer and seller. A deposit of approximately 10 percent is typically paid at this level.
- No Objection Certificate (NOC)
When purchasing a secondary market property, it is necessary that you obtain an NOC from the developer to find out whether it has any outstanding payments.
- DLD Property Registration
The salesperson, buyer or their representative is obliged to visit the DLD to sign off on the ownership. You will pay the DLD fee, 4%, and a small administrative fee.
- Title Deed
Once the registration is successful, the DLD will issue a title deed, which is evidence that you own the property legally.
This procedure does not change your status as to whether you are a resident or not and it shows that Dubai is open to non-resident purchasing of property.
Financing of Non-Residents
A common question is whether a non-resident is capable of financing a purchase through a mortgage. Fortunately, several banks in the UAE offer non-resident mortgages, albeit with slightly stricter conditions.
Eligibility of Non-Residents to Mortgage:
- Down payment: 20-25% when expats are involved, and usually more when they are not residents.
- Documents required: A passport, proof of income, bank statements, and a credit report.
- Interest rates: Typically fixed or variable; they may be slightly higher than those offered to residents.
- Loan conditions: To a maximum of 25 years.
The approval of a mortgage is also based on the country you are residing in and the stability of your income. Always contact the mortgage advisors or banks to find out the updated requirements.
The Advantages of Purchasing Real Estate in Dubai as a Non-Resident
There is no doubt that the attractiveness of Dubai is not limited to its loud skyscrapers and tall towers; it also offers real economic, legal, and financial advantages. This is why it is a great decision when you are not a resident of Dubai but buy a property in this city:
- Free zone 100 percent ownership.
- Income and capital gains are tax-free.
- The reasonable rental returns are generally between 6-9 percent.
- Government-regulated market.
- The friendly investment visas (5-year and 10-year Golden Visas to property investors).
- A high currency peg (the UAE Dirham is pegged to the US dollar).
Whether it’s a return, a vacation getaway, or a retirement plan, Dubai fits all of these.
Does Ownership of Property Translate to Residency?
Although property purchase in Dubai does not necessitate a visa, certain types of property ownership make you eligible to obtain a visa. The UAE will also provide you with long-term investor visas in case you acquire property at a particular high value:
- 5-Year Property Investor Visa: This visa is available for individuals who wish to invest in real estate worth AED 2 million (approximately USD 545,000) or more.
- 10-Year Golden Visa: It is issued under certain conditions when investments exceeding AED 10 million are made.
The property should, however, not be mortgaged; instead, it should be paid entirely to qualify. This route is an excellent motivator for prospective future residents of the UAE.
Concerns and Threats
Being a property market, it is necessary to keep possible dangers in mind:
- Variable market cycles: The Dubai market can be cyclical; do some research or consult a financial expert.
- Project credibility: Buy off-plan only from recognised developers.
- Currency exchange: When making purchases in a foreign currency, be aware of changes in exchange rates.
- Maintenance and service fee: Know about the costs of keeping up with the costs, particularly in luxury developments.
Nothing is more prudent than being well-informed, which will make your Dubai investment both profitable and safe.
Conclusion
Is it possible to purchase property in Dubai without a residency permit? Absolutely. The Dubai government is well-positioned to offer a range of support to international investors by creating a real estate environment that is welcoming to all. Clear laws on Dubai real estate, safe procedures, and strong infrastructure mean that not only can a non-resident purchase property, but it can also be profitable.
Hoping to generate rental income, achieve long-term growth, or establish a strategic presence in the UAE, investing in a property in Dubai is worth considering for non-residents.
Want to invest? Contact a licensed Dubai real estate agent, exercise due diligence and the first hurdle of owning a part of one of the most famous cities in the world is cleared.
