How to buy

properties in Dubai, UAE

A Complete Guide To Buying a House in Dubai For Expats - Prices & Process

From an investment perspective, Dubai is a prime real estate market where all sorts of properties, including residences and luxury properties are up for sale. Since the Dubai government changed the laws and allowed foreigners to buy houses and apartments in Dubai, a lot of people have been looking to invest in the city. With the massive potential for return of investment, buying a house in Dubai for expats comes with a lot of benefits.

Dubai offers hundreds of properties for the purpose of future investment. These include villas, condominiums, apartment buildings, and single-family homes. If you are interested in making an investment in a property in Dubai, you must take out the time to investigate the important available options.

One of the best possible things about investing in Dubai’s real estate market is that a lot of available condos, properties, apartments, and residential types can fulfill every person’s requirements. This also means that individuals are not forced to settle for properties that may not suit their personal budget or preferences.

Dubai's real estate market has also significantly attracted the attention of overseas investors that prefer investments for high return and high-income properties. These properties can be found in premium locations, such as Dubai Marina, Jumeirah Lake Towers, and various other famous locations. 

Freehold Properties
With the rapid development of Freehold properties, the process of buying property in Dubai for foreigners has become easier than ever. Freehold properties are most commonly sought by foreigners who are interested in investing in the UAE, or who plan to buy a flat in Dubai. Individuals living in the UAE have access to freehold properties that can be rented, sold, and inherited if required.
Freehold property has also been associated with relatively undeveloped parcels of land rather than homes or apartments. This allows owners to develop a property of their choice on the land.

Since the investor enjoys the full ownership of the property in perpetuity, the property can be used for any purpose. It also requires less amount of paperwork and does not require consent from the state.

If you are looking to purchase a freehold property in Dubai, you will have to purchase this through a government-approved property or real estate developer

Purchasing Property In Dubai For Investment Purpose 
The real estate market in UAE is very popular and there are many benefits of buying a house in Dubai. These include high rental yield, high market capitalization, and a transparent process for businesses. Most foreigners or expatriates hope to buy an affordable house in Dubai that can get them a massive return on their investment. A thorough assessment of the market can help to buy an apartment in Dubai at a good rate.

Purchasing Property In Dubai For Personal Use
Over the years, Dubai has become a huge real estate and business hub. The city is now home to several expatriates that have come from various parts of the world. Dubai-based properties are often regarded as highly expensive and out of reach for several foreigners that work as blue-collar workers.

But, such things have now changed. Individuals that are employed or have a personal business in Dubai are now more inclined towards purchasing their personal property and not renting them out. As the government has relived certain restrictions on property ownership, hence the complexity in buying property in Dubai for foreigners has been eased.

If your personal motive for purchasing property in Dubai is to reside, then you should consider whether the site is close to hospitals, supermarkets, restaurants, and schools. Raising your family in a progressive and developed city like Dubai can be a very rewarding experience.

Factors To Consider Before Buying Property in Dubai for Foreigners

Location
One of the most essential elements that you should consider before investing in Dubai’s real estate properties is location. Individuals who want to invest in an apartment property or buy a luxury house in Dubai should research the best locations for future investment in real estate. Some of the prime locations in the city, such as Dubai Marina, have a particular set of facilities associated with them that provides opportunities for a high-quality lifestyle.

Research and Analyze Market Stats
It is certainly difficult to select a specific location when there is a wide range of highly tempting options. To get the best return on your investment, it is essential to start your personal research of the property market.
As an interested investor, you can also read about the current trends, predictions, and patterns on financial investments. Newer projects for investment in Dubai may be more attractive for investors. The more you research, the more benefits you can extract from UAE’s real estate market.

Affordability 
One of the most important factors that are considered globally for purchasing real estate property is affordability. An individual’s housing expense on a monthly basis must not increase more than 25% of their total income. Your budget should also be enough for upfront fees. This could be nearly 9% of the property’s overall price of purchase.

Being an owner of a real estate property in Dubai, you would also need to keep track of the maintenance fees and payment of the annual service charges. 
Currently, because of the low property prices caused by the pandemic, the real estate market in Dubai has become a buyer’s market. Hence, this is a great time for investors looking for houses and properties at discount to invest in Dubai.

Rental Yields 
If you are thinking of renting out your property in Dubai, you should focus on how much monetary gains you will get. This will help you assess if the potential rental income is adequate for covering your repayment, mortgage, and maintenance expenses.
Typically, investors can get a gross yield of anywhere between 5% and 9%.

Residence Visa 
The real estate properties that are valued at AED 1 million or above in the UAE can help you gain a residency visa. This could be subjected to specific guidelines.
There are mainly two types of residence visas that are typically available in the UAE. One is a six-month multi-entry. The other is a two-year visa for residency. Owners of real estate properties also have an option to sponsor residence visas for their families.

A property in Dubai that has been valued at AED 5 million or more, has no specific mortgage value attached to it and has been retained for 36 months or more can help potential expatriates or foreigners get a residency visa of 5-years or more. This depends primarily on specific conditions for eligibility.


Costs Required For The Purpose Of Purchasing A Property In Dubai
There is a specific cost of buying a house in Dubai. It is important that you have an idea of all the fees associated with buying a house in Dubai in advance. This is essential to set your budget in a relevant manner.

Fees for NOC: This is usually in the range of AED 500 to AED 5000. It can be paid directly to the real estate or property developer.

Fees for registration: Nearly 4% of the total purchase price of the property may be paid to DLD.

Commission of the real estate agent: This is nearly 2% of the property’s price of purchase.
Apart from the potential costs, there could also be extra charges. They could be applied to the office of the property developer as well as the DLD. You may also have to pay fees for a community/building to the real estate developer.

If you do plan on taking out a mortgage, it is important to determine the terms and conditions of the mortgage loans available for foreigners or expatriates that are residents of Dubai. Other guidelines that should be considered by the central bank for the purpose of taking a mortgage are as follows:

  • Foreigners or expatriates who want to invest in a real estate property that is valued at nearly AED 5 million have an option for borrowing nearly 75% of the total value of the property. On the contrary, citizens of the UAE have the option to borrow nearly 80%.

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