THEBROKS as a boutique real estate agency in the UAE, comprehends the complexities that global buyers encounter when delving into property investment opportunities in this vibrant market. The decision between primary and secondary properties is crucial, with each option presenting different advantages and aspects to take into account. This practical guide is designed to clarify this essential element, giving you the ability to choose a realty that matches your investment goals.
Can a foreigner purchase real estate in Dubai?
"Just last week, I helped a Canadian family secure their dream vacation home in Dubai Marina. They were amazed at how straightforward the process was for foreigners to buy property here."
Absolutely! The UAE has adopted a forward-thinking and hospitable approach to foreign real estate ownership, acknowledging its invaluable contributions to the nation's economic growth and diversification. In fact, foreign investors account for over 50% of real estate transactions in Dubai. Global businessmen can confidently participate in the UAE's property market and benefit from a legal framework that is clear and well-regulated.
Can I, as a citizen of a certain country, buy a house in the emirate?
"A client of mine was initially concerned about whether he could buy a unit in Dubai non-GCC national. I assured him that with THEBROKS' guidance, it would be seamless."
The real estate market in the UAE welcomes investors of all nationalities without discrimination. Key fact: certain areas within the UAE have rules concerning the ownership of property by non-residents or non-GCC nationals. According to Dubai Land Department statistics, over 217 nationalities own property in Dubai. THEBROKS' seasoned brokers can lead your deal, upholding and facilitating a seamless investment journey.
What documents are needed for getting a property in UAE?
"A German couple I worked with recently was pleasantly surprised at how organized and efficient the documentation process was for buying property in Dubai as foreigners, as even in their country the process were more ineffective."
To initiate the process of getting a unit in the UAE, foreign buyers need a valid passport, proof of income or financial capability (such as bank statements or pay slips), and, in some cases, a local visa or a Power of Attorney if purchasing through a representative. Our team at THEBROKS offers a comprehensive checklist tailored to your specific circumstances, to make a transaction smooth.
What is the procedure for foreigners to purchase real estate in Dubai?
"I distinctly remember walking a family through each step of the purchasing process, ensuring they felt confident and informed every step of the way."
The purchasing of real estate in Dubai has 6 effective steps:
1. Identify a real estate object and engage with a reputable real estate agency like THEBROKS.
2. Obtain a UAE residency visa (if required) or appoint a local representative through a Power of Attorney.
3. Conduct due diligence on the property.
4. Secure financing, if needed, through local banks or approved lenders. In 2022, over 23,000 new mortgages were issued to foreigners in Dubai.
5. Proceed with the purchase agreement and transfer of ownership.
6. Property registration under your name with the appropriate authorities.
Is it possible to buy an apartment in Dubai on credit or with a mortgage?
"Recently, a young client couple was thrilled to learn about the flexible mortgages available for foreigners buying property in Dubai. I helped them secure a competitive 20/80 payment plan option that fits their budget."
Yes, international purchasers in Dubai can choose to secure financing for their real estate acquisitions through mortgages or credit solutions provided by authorized local banks and lenders. These financing options typically require a booking fee ranging from 10% to 35% of the property's value, with the remaining amount being financed over a specified tenure. In 2022, the average mortgage size for foreign buyers in Dubai was AED 2.5 million. THEBROKS will help you to navigate payment plan options identify suitable lenders, and apply for any.
What are the options for buying real estate in Dubai?
"An Indian family I worked with had specific preferences for an off-plan 3BR unit. I guided them to chat with the developer to choose a perfect fit."
Broadly, you can get primary and secondary properties in the UAE.
Primary properties refer to newly constructed developments sold directly by the developer or through authorized agents. In 2022, primary properties accounted for 62% of total real estate transactions in Dubai.
Primary pros:
- Brand-new and modern construction
- Finishes and layout options
- Flexible payment plans
- High ROI potential, with average returns of 8-10% annually
Secondary properties, also known as re-sale or ready or off-plan properties. So you buy a property that has previously been owned or occupied. Secondary properties made up 38% of total transactions in Dubai in 2022.
Secondary pros:
- Faster deal, with an average transaction time of 45 days
- Established communities with existing amenities and infrastructure
- Potential for negotiation on pricing and terms, with average discounts of 5-10%
- Chance to renovate and personalize the property to your preferences
What rights does a foreigner acquire when buying a home in Dubai?
"A client from the US was pleased to learn what robust legal protections are granted to foreign property buyers in Dubai."
Here are some rights and privileges that protect foreigners' investment and guarantee a seamless ownership experience, including:
- Freehold: Foreign investors can enjoy full freehold ownership rights in designated areas, allowing them to acquire, sell, or transfer properties without restrictions. Over 20 areas in Dubai offer freehold opportunities for foreign buyers.
- Secure Tenure: Properties bought in Dubai are available on a renewable leasehold basis for 99 years, ensuring long-term security and stability for your investment.
- Inheritance Rights: Foreigners buying property in the UAE have the right to bequeath it to their legal heirs, ensuring a smooth ownership transition across generations.
- Legal Protection: The UAE's robust legal framework provides comprehensive protection for foreign property owners, with clear laws governing ownership and dispute resolution.
At THEBROKS, we prioritize keeping our clients informed about the ever-evolving legal landscape, ensuring that they can fully leverage the rights and benefits associated with their property ownership.
What are the responsibilities of property owners in Dubai?
"A client couple I worked with was initially overwhelmed by the prospect of owning property abroad. However, I walked them through their responsibilities as foreign owners, and they quickly realized it was manageable with proper guidance."
Having a property in Dubai comes with numerous advantages, but fulfilling their responsibilities is important too:
- Local Laws and Regulations Compliance: You must adhere to all relevant laws, regulations, and community rules governing real estate ownership and management in Dubai. This includes annual registration and payment of property service charges, averaging around AED 15-25 per sq. ft.
- Service Charges and Fees Payment: Paying annual service charges, maintenance fees, and any applicable taxes or levies associated with properties is obligatory. These can range from AED 10,000 to AED 50,000 per year, depending on the property size and location.
- Property Maintenance: The owner is responsible for maintaining the property and ensuring that it is kept in good condition, whether they do it themselves or hire property management companies to do so.
- Respecting Community Guidelines: Rules set forth by the community or development in which their property is located are important to be respected by foreign real estate buyers, such as noise regulations and common area usage.
At THEBROKS, we are devoted to helping clients fulfill property ownership responsibilities while contributing to community well-being.
Can I rent out the property I bought in Dubai?
"A client of mine was thrilled to learn that he could generate passive income by renting out his newly acquired property in Dubai. I provided guidance on navigating the rental regulations as a foreign owner."
Absolutely! You can rent your own properties, creating passive income and maximizing capitalization. Get to know more about local rules such as obtaining necessary licenses, adhering to tenancy laws, and any specific community rules. In 2022, the average rental yield for apartments in Dubai was 7.2%, making it an attractive investment opportunity.
THEBROKS offers help in navigating the rental market, finding reliable tenants, and handling day-to-day operations, allowing you to earn passive income with fewer hassles.
Are there any restrictions on foreigners owning real estate in Dubai?
"A Chinese family I worked with had concerns about potential restrictions on foreign property ownership in certain areas of Dubai. I reassured them that with THEBROKS' expertise, we could identify developments that meet their needs while adhering to all regulations."
While the UAE embraces foreign real estate ownership, it's important to note that certain areas within Dubai have specific regulations and restrictions regarding property acquisition by non-residents or non-GCC nationals. For instance, only 7 areas allow foreigners to purchase villas or landed properties. These restrictions are designed to maintain a balanced and sustainable real estate market, ensuring the harmonious coexistence of diverse communities.
THEBROKS can help foreigners buy property in Dubai. Whether you're interested in property for sale in Dubai or need to know where foreigners can buy property, we have the answers. Start your real estate journey with us today!
