Guide to Buying Property in Dubai for Foreigners: What You Need to Know…
Foreigners can own freehold land and property within designated areas.
Dubai offers an attractive opportunity for foreign investors looking to buy property. According to the UAE’s government portal and Law No. 7 of 2006 on Real Estate Registration, non-UAE nationals can own freehold land and property within designated areas in Dubai. This means foreigners can purchase, own, and sell property with no restrictions on ownership duration.
What is Freehold Ownership?
The Dubai Land Department (DLD) defines freehold ownership as absolute and unrestricted by time, extending to both the land and any buildings on it. Foreign nationals can acquire various real estate interests in designated areas, including:
Musataha: The right to develop and use land owned by another party for up to 50 years.
Usufruct: The right to use and benefit from a property owned by another for up to 99 years.
Top Designated Areas for Foreign Ownership
Dubai has specified several areas where foreigners can purchase property. Some of the most sought-after locations include:
- The Palm Jumeirah
- The World Islands
- Downtown Dubai
- Old Town
- Burj Khalifa
- Business Bay
- Dubai Marina
- Emirates Hills
- Jumeirah Lakes Towers (JLT)
- Jumeirah Beach Residence (JBR)
Other areas include Discovery Gardens, Arabian Ranches, Mirdif (specified plots), Dubailand Residence Complex (DLRC), Dubai Investment Park (DIP), Falcon City, Dubai Sports City, Dubai Motor City, International City, and Jumeirah Islands & Jumeirah Village.
*For complete information on which areas the Foreigners can buy or sell properties, consult Deja Vu Real Estate.
Steps to Buying Property in Dubai
- Conduct Legal Due Diligence: Verify that the property is free of mortgages, liens, or other encumbrances. This can be done at a DLD office or through the DLD’s online services.
- Draft and Sign a Sale and Purchase Agreement: Download the agreement from the DLD website.
- Register the Sale: Submit required documents and fees at a Real Estate Registration Trustees service center or via the Dubai REST app.
Key Documents Required
- No-objection e-certificate (E.NOC) from the developer in freehold areas
- Emirates ID or valid passport for identification
- A legal power of attorney if applicable
- Company registration documents if the property is purchased by an entity.
Fees and Charges:
- Service partner fee: AED 2,000 plus VAT (for sales under AED 500,000) or AED 4,000 plus VAT (for sales of AED 500,000 or more)
- Real estate unit or villa fee: AED 250
- Land plot map fee: AED 100-225, depending on location
- Knowledge and innovation fees: AED 10 each
- Seller and purchaser fees: 2% of the sale value each
Finalizing the Purchase
Once all fees are paid and documents submitted, the buyer will receive essential documents, such as the e-Certificate of Title, title deed, and any relevant certificates. These documents are crucial for the legal recognition of property ownership in Dubai.
