Want to buy property in Dubai? Why not? The city has a booming economy, imposes no income, property, or capital gains tax, and has a higher rental yield than other major cities in the world. No wonder why everyone is buying property in Dubai.
As a foreigner, you can buy property in Dubai in designated freehold areas. And even those who do not live in the UAE or are expatriate residents can obtain freehold ownership rights over a property. This happens without any usufruct rights, restrictions, or leasehold rights till a time of 99 years.
Can I buy property in Dubai without being a resident?
Yes, even if you are not a resident, it is possible to buy property in Dubai.
If you are a foreign national, such as a non-resident investor or an expatriate resident who wants to buy property in Dubai, that too on a freehold basis, wouldn’t you like the right to buy, sell, and lease your properties?
According to Real Estate Registration in the Emirate of Dubai, Law No. 7 of 2006, non-UAE nationals can acquire ownership of freehold property and land in areas the Ruler of Dubai has allotted for foreign ownership.
Buying a freehold property in Dubai
The government of Dubai has designated some areas as freeholds, on which foreigners are permitted to own property. Freehold properties in Dubai have no expiry and no lease period, so the owners can sell them and pass them down to their heirs without any restrictions. Freehold ownership grants foreigners absolute rights, and as per the Dubai Land Department (DLD), this type of ownership is unrestricted by time.
What are Musataha and usufruct rights in Dubai?
Musataha refers to a right according to which the owner can build on third-party land and benefit from the construction for not more than 50 years.
Usufruct rights allow the owners to use and benefit from such land for up to 99 years. This is also referred to as a long-term lease.
After the duration for Musataha and usufruct rights has been completed, the property’s ownership is transferred to its original owner.
Where can foreigners buy property in Dubai?
Foreigners can own the freehold properties in the following areas, as issued by The Land Department. To get more information, you must contact the Land Department.
- Umm Hurair 2
- Al Barsha South 2
- Al Barsha South 3
- Emirates Hills 1
- Emirates Hills 2
- Emirates Hills 3
- Jebel Ali
- Al Jaddaf
- The World Islands
- Ras al Khor
- Al Rowyah
- Sheikh Zayed Road
- Sofouh 1
- Sofouh 2
- Al-Qouz 3
- Al-Qouz Industrial Area 2
- Al-Qouz Industrial Area 3
- Mirdif
- Dubai Marina
- Palm Jebel Ali
- Palm Jumeirah
- Nad al-Sheba
- Warsan 1
How do you do Legal Due Diligence before buying a property in Dubai?
Before buying a property in Dubai, you must do Legal Due Diligence. This is to ensure that the property you are interested in buying is free of liens and mortgages and owned by the seller.
As a foreigner, follow these steps to find suitable properties in Dubai.
- Make way to https://dubailand.gov.ae/en/.
- Click on the “Open Data” tab.
- From the drop-down menu, choose “Real Estate Data.”
- Fill out the given fields, and check “freehold” before selecting the property type, status, and other factors.
To perform Legal Due Diligence, visit the Land Department office or use the online service via the following steps.
- Go to https://dubailand.gov.ae/en/
- Go to the “Services” tab
- Click “All Services.”
- Now select “Information Services.”
- And the last step is clicking on “Inquiry about a person, whether it is a real estate owner” before you proceed to teh service.
After these steps, you can search by name, passport number, company, or Emirates ID.
Sale Registration Application
The Dubai Land Department issues a sale and purchase agreement, which allows you to register the sale process between the seller and purchaser.
Required Documents
- No-objection e-certificate from the developer (via Dubai REST application)
- Seller and purchaser’s UAE ID
- Or a valid passport if they are nonresident foreigners
- A legal power of attorney
- For unregistered companies, one should apply for the registration.
Procedure
There are two procedures for registering the sale.
Service Center
- Submit the required documents to an employee in the service center
- The employee will enter the transaction details
- You will pay the registration fee and receive a receipt
- The output will be delivered by e-mail.
Application
- Open the Dubai REST app
- Select “Buy a property.”
- Enter the reservation reference number and then the OTP
- Check your property details and make sure that you enter the missing ones
- Upload documents
- Submit your payment via the Noqodi payment page and download the certificate.
Service Fees
Seller: 2% of the sale value
Purchaser: 2% of the sale value
AED 250: Real estate unit or villa
AED 100: Land plot map for the lands outside Dubai Municipality authority
AED 225: Land plot map unified with Dubai Municipality.
AED 10: Knowledge fee for each drawing
AED 10: Innovation fee for each drawing:
Documents issued to the buyer
- e-Certificate of Title
- Title deed
- Title deed usufruct right e-certificate
- Provisional sale contract (statement certificate)
- Provisional registration contract
- Fee balances
- Map
