Top questions about property in Dubai

Property ownership and rental

Explore the specifics of property ownership in Dubai, from taxes to other relevant information.

What are the rules for foreigners buying real estate?

Foreigners in Dubai have unrestricted rights to purchase freehold property. This property can be used for any purpose, including personal or business use. There are no age or nationality requirements for property ownership in Dubai.

What is the ownership term for houses in Dubai?

Dubai’s freehold property system provides buyers with complete ownership of their assets.

In which Dubai neighborhoods can I buy a home?

According to Law No. 7 of 2006, Article 4, you can purchase freehold properties in certain neighborhoods like Business Bay, Dubai Marina, Dubai Creek Harbour, and Downtown Dubai.

What are the obligatory taxes associated with buying or renting a home?

When purchasing property, you’ll only need to pay a 5% value-added tax (VAT) on the registration fees and the real estate agent’s commission. For residential and commercial leases, the tax rates are 5% and 10%, respectively.

Is obtaining a mortgage feasible for me?

The Central Bank of the UAE has established that both residents and non-residents are eligible to apply for personal loans. Non-residents are required to make a down payment of 20% of the property purchase price for real estate valued below AED 5 million (USD 1.36 million). If the property value exceeds AED 5 million (USD 1.36 million), a minimum down payment of 30% is necessary.

If I buy an apartment, what expenses are typically part of the initial cost?

Many units include a parking space and finished interiors. Most complexes feature a swimming pool, a gym, and a children’s play area. High-end developments often offer additional amenities like a movie theater, libraries, cabanas, barbecue areas, a sauna, lounges, and more.

Buy-to-Let Properties

know about property leasing in Dubai, including lease agreements, short- and long-term ROI, and factors affecting rental income.

How can I rent out my property? Is it necessary to travel to Dubai for this

Before you can rent out your property in Dubai, you’ll need to obtain approval from the Dubai Land Department (DLD). Once you’ve found a tenant, ensure that you draft and register a Tenancy Contract with the Real Estate Regulatory Agency (RERA). If you’re unable to be in Dubai personally, a property management company can handle the entire rental process for you, including marketing your property, finding tenants, conducting inspections, managing rental payments, and more.

What are the ROI differences between short-term and long-term rentals?

Dubai’s property market offers diverse investment opportunities, with long-term rentals typically yielding 5% to 8% ROI, while short-term rentals can potentially generate up to 11%

What are the reasons behind Dubai's strong investment performance?

The local real estate market’s success is fueled by the influx of tourists and foreign residents, the city’s security, its well-developed infrastructure, its robust economy, its advantageous geopolitical situation, and its favourable tax policies.

Residence-via-Investment Programmes

The UAE offers a renowned residence-by-investment program, enabling individuals to relocate with their families and domestic staff.

Is it feasible to immigrate to the UAE by purchasing real estate?

Yes, A residential property purchase of AED 750,000 (roughly USD 204,000) qualifies you for a long-term visa.

What are the different types of visas available for investors?

If you purchase a property in Dubai valued at AED 750,000 or more, you can apply for a residency visa. The visa duration depends on the property value: a 2-year visa for properties worth AED 750,000 to AED 1,999,999 and a 10-year Golden Visa for properties worth AED 2,000,000 or more. These visas extend to your spouse and children, and the Golden Visa also allows you to sponsor domestic staff.

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Top questions about property in Dubai