How Can Expats Buy Property in Dubai? A Complete Guide

The Freehold Decree was introduced by the government in Dubai in 2002, a landmark law that allows foreign nationals, both resident expatriates and non-resident investors, to own property in designated freehold locations. The breakthrough legislation legally consolidated the right of expat property ownership Dubai in a definitive manner, granting buyers the freedom to own, sell, lease, and rent homes in designated locations.

A common question is: can foreigners own property in Dubai? The response is a clear yes. Foreigners in Dubai are usually able to access two types of property ownership:

• Freehold Ownership: This allows for total and indefinite rights in the property as well as in the land it covers. Such properties are available only in government-defined areas.
• Leasehold Ownership: This scheme involves the purchase from the freeholder of a leasehold in the property for a period of maximum 99 years, but excludes ownership of the underlying land. Leasehold properties are usually located outside of specifically earmarked freehold locations.

In order to encourage foreign investment, Dubai has designated certain locations where non-nationals are able to acquire property in freehold. So, where can expats buy property in Dubai? Notable areas include:

• Downtown Dubai: This area features prominent landmarks such as the Burj Khalifa and the Dubai Mall, with luxury apartments and penthouses.
• Dubai Marina: A lively waterfront community with upscale tower residences and a lively night scene.
• Palm Jumeirah: A man-made island with villas, apartments, and five-star hotels available exclusively.
• Jumeirah Lakes Towers (JLT): A mixed-use development anchored by picturesque lakes, comprising residential and business structures.
• Arabian Ranches: A peaceful, gated residential community comprising villas, golf courses, and horse riding grounds.

These are a selection of the zones in which expatriates can legally purchase property. If you’re looking for a list of freehold zones in Dubai, do not hesitate to contact LYM Real Estate.

Proceeding with a property purchase for expats in Dubai entails a step-by-step process:

• Property Identification: Start by researching and shortlisting properties in authorized freehold zones.
• Hire a Licensed Agent: Work with a reputable real estate agent who has experience in expat dealings in the area.
• Price Negotiation: Once a property is identified, negotiate the terms of sale with the seller.
• Sign a Memorandum of Understanding (MoU): This agreement sets the terms of sale and typically carries a deposit of 10%.
• Obtain a No Objection Certificate (NOC): The developer issues the NOC, ensuring no dues are pending and authorizing the sale.
• Title Transfer: Complete the transaction at the Dubai Land Department, where the payment of the balance is made and the title is transferred in the buyer's name.

When planning a property purchase for expats in Dubai, there are crucial financial factors to consider:

• Down Payment: For mortgage buyers, the minimum down payment is 20%. For foreigners without an Emirates ID, the minimum down payment increases to 40%.
• Registration Fee: It costs 4% of the purchase price. Commissions for real estate agents are approximately 2% of the property value, plus a 5% VAT.
• Mortgage Access: Financing from local banks can be accessed by foreign buyers, but this can be subject to such determinations as income, residence, and type of property.

Knowledge of property laws for expats in Dubai is essential in order to be legally compliant and safeguard your investment. The documents required are:

• Valid passport
• Proof of residence or address
• No Objection Certificate (NOC)
• Signed agreements and sale contracts

Retaining lawyers is highly recommended in order to conduct proper due diligence and comply with all applicable legal procedures. 

Investing in real estate in Dubai has many advantages:

• High Returns: There are some freehold areas producing average returns of 6–8%, while a few more give even better.
• Tax Exemptions: Dubai does not charge income, capital gains, or property ownership tax.
• Long-Term Residency Opportunities: You can qualify for long-term visas, i.e., the 10-year Golden Visa, for qualifying investments of over AED 2 million.
• High Rental Returns: Dubai has consistently produced rental yields higher in percentage terms than those for most global cities.
• Premium Lifestyle: International-level infrastructure, security, and best-in-class amenities contribute to a higher standard of living.