Foreign investors can buy property in designated freehold areas in Dubai. Freehold ownership allows investors to own the property outright, including the land it stands on, without any time restrictions.
Dubai real estate has long enticed foreign investors, but this avenue comes with specific rules and regulations. This article delves into the process of foreign property investment in Dubai and the associated regulatory framework.
Can Foreigners Buy Property in Dubai?
Absolutely. Foreign investors are permitted to purchase real estate in Dubai for investment purposes. According to the Real Estate Regulatory Agency. (RERA)
“Government policy is to direct foreign investment into new housing, as this creates more economic growth for ideal investors, freedom and chance to own properties in Dubai. Along with that is the investors visa for property purchases over AED 2 Million Dirhams($550,000)”
In essence, Dubai’s regulations for foreign property investment incentivize foreign buyers to invest in new construction, thereby stimulating the growth of the innovative and sustainable housing sector.
Purchasing New vs. Old Properties
| New Builds(New Properties) | Secondary Properties |
| Modern amenities | Unique character and charm |
| Lower maintenance costs | Established Neighbourhood |
| Potential for High resale value | Potential Renovation Opportunity |
| Often part of planned communities | Typically lower initial investment Price |
Majority of the Investors are going to Off Plan or New Builds and here is why
When buying secondary properties, you are required to make full payment, 100% of the asking price, there is a gypsy to this where most buyers look for a mortgage which is an advantage to the secondary market.
When it comes to Off Plan projects, here is the secret that makes most investors money sometime overnight and in most times throughout their investment journey, Do they make terrible decisions, in most cases Yes, and this is caused by a lot of misinformation and the fear of missing out(FOMO) but let’s break it down
So, Imagine buying a property valued at AED 3.5 Million Dirhams, with offplan, what is required from the buyer is
- 20% Down Payment
- 4% DLD Fees
- Admin Fee charges
So that this implies is that you don’t need the whole 3.5 Million instead, you are given a payment plan, another beauty buying direct from Developers because it gives you one or two things
- Winning Edge
- ROI
- Capital Appreciation
When the project is under construction, It has a lot of room to appreciate, why because, one it is always part of a whole master plan, and also Up to date Amenities, and also growing demand for community
3 years down the road, the project has already appreciated on average of 15%-25% sometimes more, depending on the community, Well to my Investor clients, Location, Location, Location, can’t stress that enough but that is what brings in more juice.
For foreign investors, acquiring new buildings or secondary Units (with the intent to rent them out for investment purposes,) is a more straightforward process than buying pre-existing properties. Specifically, foreign investors hardly encounter restrictions when acquiring:
- New Buildings: The purchase of a new home typically carries minimal conditions and clear process, with an amazing payment plan which guarantees convenience and comfort also usually with a 20%-30% down payment.
- Secondary: Buying ready to move in Properties is permissible, with the main condition being that investors must make full payment as a cash down buy, which also attracts mortgage in most cases
Understanding these regulations is crucial for foreign investors looking to engage in the Dubai real estate market, ensuring compliance and a smooth investment process.
Where Can Foreigners Buy Property in Dubai?
- Dubai Marina. This waterfront community is known for high-end apartments and villas, upscale amenities, and gorgeous skyline views.
- Palm Jumeirah
- Jumeirah Beach Residence (JBR)
- Jumeirah Village Circle (JVC)
- DAMAC Hills.
