How to Buy Real Estate in Dubai as a Foreigner?

Dubai's real estate market saw an unexpected turning point when the government passed laws in 2002 allowing foreigners to purchase property in Dubai. The backdrop of this decision was in favor of establishing itself as a global investment hub. Purchasing real estate can be a herculean task in Dubai without any guidance. Thus, the following discussion can turn you to be an ace as this will explain how you can purchase real estate as a non-resident, what factors to keep in mind before you buy it, what documents are necessary, and various other things; please dive into the tabs and find out the same; 

Identify the Eligibility Criteria for Foreigners Buying Property. 

Even though the Dubai Govt has enabled foreigners to purchase property in Dubai, there is one thing that every foreigner has to follow: the document that they have to present to the authorities to get approval. If you wish to know about the same, you can take reference of the points:

• Dubai's real estate market is open to non-residents; hence, they do not require any formalities to complete. 
• However, to confirm their identity, they would still require a valid passport when buying any property in Dubai. 

 

Factors to consider before you purchase a property in Dubai. 

Dubai boasts a wide range of apartments, villas, etc., for sale in freehold areas. However, before anyone hits the road, it is requested to consider some of the major factors or criteria based on which people can continue with their objective of purchasing land; please have a look:

 

Are you ready to move in?

Many apartments and villas are available as off-plan investments at luring costs. So, before you plan to buy real estate in Dubai, clear a vision of whether you are ready to move in or planning to do so in the future!! Based on ongoing property rates, you can decide and visit there to purchase a property. 

NOTE: Generally, if you have off-plan properties, then you may go through several issues, including delays in construction, payments that are generally linked to the construction process, and other things. 

 

Are you buying a family home or merely investing in a property?

Many builders often seek for profit in real estate whereas there are others who plan to move to Dubai and purchase the permanent space for themselves. So, remember that if you are purchasing it for investment, you must check the current rental yield to get updated property information, including resale value, etc.

However, if you are purchasing a family home, you must jot down certain factors; 

• Quality of Maintenance--- Before you purchase it, you must check the property's maintenance and other stuff. 
• Public Transportation--- Whether your home has easy access to Dubai Metro, bus, and other crucial networks.  
• "Chiller" Fee--- Regardless of usage, you may have to incur the monthly fee for air conditioning services. 
• Community Guidelines---- If you are a non-resident, ensure to be aware of any restrictions on renovations, lift usages, etc., that may not be allowed to do so in a property. 

 

How do you purchase real estate? (Freehold)

If you are a non-resident and wish to purchase a real estate, you may refer to the following points;

• Inspection--- You must consult with a RERA-licenses agent to inspect properties in Dubai. 
• Securing Financing--- You may require a 25% down payment for the property (New mortgage) and ensure to clear any existing mortgage on the property. 
• Agreement of Sale---- You may have to pay 10% of the sale value to the seller. (It depends on how you are purchasing the land.) 

 

NOTE: There are more documents, for example, NOC, Registration with the Dubai Land Department (DLD), etc., required to buy real estate.