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Did the thought of buying property in Dubai ever cross your mind? Whether you are someone who dreams of purchasing property in Dubai someday, or someone who has made up their mind to act, this guide will be a true gem packed with all the information you need.
Dubai’s real estate is spectacular. A global leader in modernity and technology, Dubai is always one step ahead when it comes to infrastructure. It is no surprise that it is home to the world’s tallest building, Burj Khalifa. From commercial to residential, the properties here are stunning add-ons that add more sparkle to Dubai’s dazzling skyline.
Investors from around the world are flocking to this city, and with good reason. Sweet tax breaks, unbelievably high yields, and a super laxed investment environment, make the real estate investment super profitable here. With our all-in-one detailed guide, you would be in a better position to judge the properties in Dubai and how and where to purchase. So, let us dive in!
The Dubai real estate sector is booming in its full glory. Transactions and growth are being driven by sky-high demand from investors, strong government support, and top-notch infrastructure. Dubai’s economy is flourishing, and it is pleasing to know that a major contributor to it is the property market itself.
Under the regulation of RERA (Real Estate Regulatory Agency), Dubai’s real estate market is growing and creating more opportunities for investors. Government initiatives, such as the “Real Estate Sector Strategy 2033,” further strengthen the city’s position as a leading global real estate hub.
Did you know? In the year 2024, Dubai’s real estate sector recorded a whopping AED 761 billion in transactions!
So, if you wish to own a slice of Dubai by purchasing, that could be a transformative decision for you.
The major types of properties in Dubai include:
Residential properties are simply meant for residing, which means they are prohibited from being used for commercial purposes such as shops or company warehouses.
Residential properties in Dubai further include the following types:
Dubai is a favourite place for entrepreneurs who keep on buying property in Dubai for business purposes. The influx of businesses drives the demand for commercial properties higher and higher.
Here are some of the common types of commercial properties in Dubai:
Another popular property type in Dubai is bare land and plots. These generally fall into two main categories:
Based on the stage of development, there are two broad types of investment properties in Dubai:
Purchasing a property, be it a house or commercial space, is a very big decision. Anyone who wishes to invest in property would want it to be well-located, well-built, and a true value for the money being spent.
Here are the steps of buying property in Dubai:
Investing in a property involves a financial commitment. Therefore, it is advisable to work out your finances in advance. Your budget will play a crucial role in determining the type of property you can purchase and how you will fund it.
For example, if you have enough cash, you can pay upfront. Otherwise, you will need to explore mortgage options and understand how to obtain one.
Reviewing your budget helps you understand what you can afford and, if needed, how to secure the required funds, ensuring that the overall purchasing experience is smooth and stress-free.
Dubai’s property market is vibrant and diverse, offering many investment opportunities. From villas to studios, apartments, and land, there are both budget-friendly and premium options available. The location of the properties makes them suitable for both commercial and residential purposes.
So, you must carefully check out the options available, keeping your budget and needs in mind when buying property in Dubai:
These basic questions will help you identify the ideal property you are looking for. You can explore options on investor websites in Dubai such as Rightmove, Zoopla, and Property Finder.
In this step, you will be doing your homework and exploring the market, which will open up your mind and give you an overall idea of Dubai’s real estate market.
The diversity of Dubai’s real estate market can be overwhelming, what to buy, how to buy, where to buy, there can be so many questions in your head. An experienced real estate agent can make things super easy for you. Choose an agent who is registered with RERA and has solid track performance.
Whether it is looking for properties, shortlisting options, or finalizing the deal, they assist in every step. Plus, you can discuss your budget and needs with them, and they will recommend to you the communities and properties that will match your needs.
Financing the property through mortgage requires you to get pre approval from the bank. It confirms your eligibility to borrow, and you can show the same to sellers while making an offer. You can speak to a mortgage advisor and check out the financing options available.
Now that you have a tentative list of properties, you can visit them in person. Your agent will assist you and arrange the viewings for you. Seeing the properties firsthand gives you a much better idea of what you are investing in. Take your time with this step, view multiple properties so that you have a range of options and can choose the best one for your needs.
By this stage, you will have done plenty of research on properties and market prices, so you should feel confident making an offer for the desired property. Your agent can advise you and submit the offer on your behalf. You can negotiate with the seller and find mutual terms.
If you plan to buy property in Dubai with a mortgage, you must submit a pre-approval letter along with your offer to give the seller confidence. Additionally, a deposit is usually required which is typically 20%-25% for expats and 15% for UAE citizens.
Once you finalize the price with the seller, both parties can formally sign an agreement, known as the MOU (Memorandum of Understanding) or Form F. This is a formal sales agreement that outlines the basic terms and conditions of the property sale, including the agreed price, payment plan, and other key details. This agreement becomes legally binding on both the buyer and the seller.
Approach the bank and finalize the mortgage agreement. Banks in Dubai offer financing options to expats as well, although they may require a larger portion of the down payment.
Before granting a mortgage, banks will evaluate several factors, including:
To secure a mortgage, you will need to submit a valid passport, visa or Emirates ID, along with proof of income. Additional documents may also be required, depending on the bank’s policies.
At this stage, you will sign the final Sales and Purchase Agreement (SPA), a legally binding contract between you and the seller. Both parties typically meet at the Dubai Land Department (DLD) to sign the agreement.
Once the SPA is signed, the property is registered with the DLD. You will receive the title deed in your name, officially completing the legal transfer of ownership.
Now that you have the property transferred legally in your name, you must set up the utilities such as water, electricity, and other. For utilities and services, you can reach out to DEWA.
And with that, you can start using the property be it for residency or for commercial purposes!
Yes, foreigners can buy property in Dubai. Here are the key facts related to legal requirements:
Many well-known banks in Dubai offer easy mortgage facilities to those looking for financial support when buying property in Dubai. The steps for securing mortgage as a foreigner include:
Typical documents required for mortgage application in UAE:
Wondering where to buy property in Dubai? Here are some famous locations for property investment in Dubai:
Downtown Dubai is the heart of the city and offers stunning apartments and penthouses. It is home to Dubai’s most famous attractions, including Burj Khalifa, Dubai Mall, The Dubai Fountain, and Emaar Boulevard.
It is a great location for both residential and commercial property investment in Dubai, offering lucrative and high-potential investment opportunities.
Property prices to expect:
Dubai’s Palm Jumeirah, an island shaped like a palm tree, is a man-made wonder known worldwide for its stunning villas, apartments, and penthouses, as well as renowned hotels and resorts.
You get direct beachfront access and premium amenities, including hotel services, restaurants, retail outlets, water transport, gyms and beach clubs. Palm Jumeirah is an example of modern elegance combined with a sophisticated lifestyle, making it one of the most luxurious places for buying property in Dubai.
Property prices to expect:
Also known as Marsa Dubai, it is a waterfront community with luxurious apartments, hotels, and villas. It is built on an artificial canal along 3 kilometers of the Persian Gulf shoreline.
The location is renowned for its Marina Walk, beaches, malls, restaurants, schools and luxury lifestyle. It is home to high-income buyers and tenants, which increases the investment potential of the area.
Property prices to expect:
Business Bay is a prime location for buying property in Dubai. It is situated adjacent to Downtown Dubai and is known for its modern towers, business offices, and luxury residential options. The area features a mix of residential, commercial, and leisure spaces.
Not just a hub for luxury property and a vibrant community, Business Bay is also a hotspot for businesses. Rental yields in the area remain consistently high due to strong demand from the business community, corporate professionals and a growing expat population.
Property prices to expect:
Dubai’s yet another highly sought-after investment destination, Al Furjan offers an attractive entry point for interested investors. The area features large open spaces, gardens, walkways, and an overall peaceful living environment. Whether it is apartments, townhouses, or villas, you have a variety of options to choose from.
Shopping centers, community amenities, educational institutions, and healthcare services all further enhance its appeal.
Property prices to expect:
CityWalk Dubai, developed by Meeras, is a lively neighborhood that offers a sophisticated urban lifestyle mixed with premium amenities and a strategic location. For investors seeking high ROI, tax-free profits, and a secure investment, CityWalk can be a great option.
Whether it is a luxury living experience, commercial opportunity, or tourism and natural beauty, the area carefully blends it all together, making it a highly sound investment. The property options include duplexes, apartments, and penthouses.
Dubai offers amazing benefits to property investors, which has made the world go crazy for investment opportunities here. Here are the advantages of buying property in Dubai:
Dubai’s rental yields are considered to be the highest in the world. The average gross rental income in UAE is around 4.87%. In Dubai, you can expect to earn as high as 9% depending on the property type you invest in.
No annual property tax, no capital gains tax, and no income tax. Dubai has seriously won the taxation game and made it super lucrative for investors.
Dubai is a global tourist destination, with visitors welcomed throughout the year. This creates a surge in demand for properties, especially for rental purposes.
Dubai is set to become the smartest city on earth. The constant development, infrastructure expansion, and mega projects ensure appreciation of real estate.
There is a transparent legal process, 100% foreign ownership of properties in many free zones and investor protection measures in place.
Real estate investors can qualify for the prestigious 10-year golden visa upon meeting the eligibility and enjoy a promising life here.
Dubai is consistently ranked as one of the safest cities globally, making it a secure place for families and expats looking to invest.
Positioned before Europe, Asia and Africa, Dubai is known to be a global hub offering easy access to the world.
The Golden Visa is a 10-year residence visa that allows foreigners to live, work, and do business in Dubai for an extended period. Through buying property in Dubai, the Golden Visa can be obtained.
However, there are some minimum requirements that you must meet, including a minimum investment of AED 2 million in Dubai-based property.
Required documents include:
Dubai’s tax-free ecosystem and stunning infrastructure make it a great place to invest, both for locals and foreign investors. However, as it’s a very dynamic market, you should take time to do proper market research, understand the types of property available, the locations with high ROI, and then make a decision based on your budget and needs when buying property in Dubai.
The right property in the right location can unlock some serious long-term value for you!
Looking for a golden visa as property investor in Dubai? Contact Dubiz Business Setup and check your eligibility. We can also guide you with business setup in Dubai and other related matters.
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Disclaimer: The blog contains information that may change over time. We recommend contacting experts, such as authorized real estate consultants, for more details.
Yes, buying property in Dubai can be a worthy investment due to high rental yield and diverse property options.
Yes, foreigners can buy property in Dubai and even own it completely in freehold areas. They can purchase apartments, villas, or land without the need for a residence visa.
If you are planning to live in Dubai for a longer time and your budget allows, then it is better to buy property in Dubai. Plus, it increases the chances of being eligible for a long-term golden visa. Alternatively, you can rent out a decent space if you have short-term needs.
Disadvantages of buying Dubai property may include high upfront costs, chances of development delays for off-plan properties, and ownership restrictions in certain areas.
Although Dubai offers premium areas and luxury property options, there are still options for affordable property investment such as studios. Plus, through bank financing or leasing, you can bring down the costs
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