Can foreigners buy property in Dubai?
Yes, foreigners are allowed to buy, sell, and lease property in Dubai in designated freehold areas. These include popular districts like Dubai Marina, Downtown Dubai, Palm Jumeirah, and Jumeirah Village Circle. Ownership is full and not restricted by nationality. This initiative has helped make Dubai a global real estate investment hub.
What are freehold and leasehold areas?
Freehold areas allow non-UAE nationals to have complete ownership of the property and the land it stands on. In contrast, leasehold areas allow buyers to lease the property for up to 99 years, after which ownership reverts to the landowner. Leasehold areas are usually closer to central Dubai and are less expensive than freehold.
What are the steps to buy a property in Dubai?
The process includes selecting a property, signing a Memorandum of Understanding (MOU), paying a 10% deposit, obtaining a No Objection Certificate (NOC) from the developer, registering the property with the Dubai Land Department (DLD), and receiving the title deed. Transactions are typically quick and well-regulated.
What are the typical buying costs?
In addition to the property price, buyers should budget around 7–8% in transaction costs. This includes the 4% DLD fee, 2% real estate agent commission, AED 5,000+ admin fees, and mortgage registration fees (if applicable). Off-plan purchases might also include Oqood fees.
What is the minimum investment for a Dubai investor visa?
As of now, a minimum investment of AED 750,000 in a property qualifies an individual for a 3-year investor visa. For a 10-year Golden Visa, the investment threshold is AED 2 million. The property must be completed (not off-plan), and the investor must own the property outright or with a mortgage partially paid.
What is the average rental yield in Dubai?
Dubai offers some of the highest rental yields globally, ranging from 6% to 9% annually. Areas like JVC, Business Bay, and Dubai Marina often see strong returns. Yields depend on location, property type, occupancy rates, and management.
Are there property taxes in Dubai?
Dubai does not impose annual property taxes, capital gains taxes, or income taxes on rental income, making it highly attractive for investors. However, there is a one-time 4% transfer fee payable to DLD during purchase.
Can I rent out my property as a foreign owner?
Yes, foreign investors can lease out their property. It’s recommended to work with a licensed property management company or listing on approved portals. Owners must register their tenancy contracts through the Ejari system to ensure legal protection.
How long is a typical rental lease?
Rental contracts in Dubai are typically for one year and can be renewed annually. Short-term rentals are also legal in certain zones, especially for holiday homes, but must be licensed by Dubai Tourism (DTCM).
What is the Ejari system?
Ejari is an online platform governed by RERA that legally registers rental contracts. It ensures transparency, protects the rights of both tenants and landlords, and is required for visa and utility applications.
Who pays for maintenance and repairs?
Landlords are generally responsible for major maintenance and structural issues. Tenants are responsible for minor repairs, often up to AED 500. These terms are usually specified in the rental agreement.
How do rent increases work under Dubai law?
Rent increases must comply with the RERA Rental Index. A landlord must provide a written 90-day notice before any increase. If the increase exceeds allowed limits, tenants can dispute it with the Rental Disputes Center.
What are DLD fees?
Dubai Land Department charges a 4% transfer fee based on the property’s sale price, plus a small admin fee (AED 540–5,000 depending on the transaction type).
Are there agent commission fees?
Yes, buyers typically pay 2% of the property price to the real estate agent. Tenants usually pay 5% of the annual rent or a fixed fee.
What is the service charge on properties?
This is an annual fee owners pay for maintenance of common areas. It’s calculated per square foot and varies based on property type and facilities (e.g., AED 10–30/sqft/year).
What is a title deed?
A title deed is the official document that proves legal ownership of a property in Dubai. It’s issued by the Dubai Land Department after the property is registered in the buyer’s name.
What is RERA?
The Real Estate Regulatory Agency (RERA) is a branch of DLD that regulates the real estate sector. It ensures transparency, sets rules for developers and agents, and protects buyers and tenants.
Is it mandatory to register the tenancy contract?
Yes. All tenancy contracts must be registered through the Ejari system to be legally binding and to access government services (e.g., DEWA, visa renewal).
Can I buy property under a company name?
Yes, certain free zones allow companies to purchase property, but regulations vary. Offshore companies from jurisdictions like JAFZA or RAKICC are commonly used.
Still have questions?
Feel free to ask us anything about real estate, whether you’re buying, selling, renting, or investing. We’re here to help and will do our best to provide clear, helpful answers to guide you through every step of your real estate journey. Just reach out anytime!
