Real Estate in UAE
Who can buy a property in the UAE
In the UAE, foreigners are allowed to buy real estate, but there are areas of the country with form of ownership restrictions. In some areas, a foreigner can only rent a property long-time, in others — to buy in full ownership.
The leader of the UAE real estate market is the Emirate of Dubai, which provides investors with more opportunities due to a wide selection of properties. Real estate sales statistics confirm that property demand in this emirate is growing the fastest.
Property costs by district in the UAE
Residential properties in Dubai have grown in value by 3,5% annually over the past 10 years. However, the price increased and decreased from year to year: the annual price change ranged from an increase of 17% to a decrease of 12%.
The average residential property price per 1 m² is $3,175, according to the Dubai Land Department. The cost of housing depends on the area of Dubai: the highest price per 1 m² is in Downtown — $6,865. Prices per 1 m² in other areas of Dubai are: Palm Jumeirah — $6,857, Dubai Marina — $6,636, Dubai Creek Harbor — $5,145, Business Bay — $4,905.
Property purchase procedure in the UAE
Property in Dubai can be bought in 4-6 weeks. First, the investor chooses real estate: this can be done remotely or in person. The parties conclude a purchase and sale agreement, in which they record the main parameters of the deal. The buyer puts an advance payment of 10% of the transaction amount.
If an investor buys real estate with a mortgage, they must obtain a No Objection Certificate from the bank. A payroll from the developer and a Certificate of Transfer are also required.
The buyer pays the remaining established amount. The buyer and the seller register the transaction with the Dubai Land Department. The seller receives payment under the contract after registering the transfer of ownership.
Property purchase taxes in the UAE
Buyers of residential properties in Dubai pay transfer tax and additional fees:
- transfer tax — 4%;
- administration fee for a tax payment — $147;
- registration fee — $545—$1,090;
- administration fee for a certificate of ownership registration — $68.
When purchasing commercial properties, buyers pay an additional 5% VAT.
Golden visa of the UAE for the purchase of a real estate
The UAE issues a five-year Golden Visa to foreigners for real estate investments. It is allowed to buy residential and commercial real estate in special areas called Freehold Zones. The minimum investment amount is AED2,000,000 (≈$545,000). Real estate can be purchased with a mortgage in one of the UAE banks, the down payment must be at least 50%.
A resident visa for three years can be issued by purchasing real estate. Properties must also be in certain locations, such as Freehold Zones, and cost at least AED750,000 (≈$204,000). A husband and wife can buy a property in joint ownership if it costs at least AED1,000,000 (≈ $272,255).Read the article
Real estate investment in the UAE
By making an investment in real estate in the UAE, you can obtain permanent residency — known as the Property Investor Residence Visa. It grants a residency permit for 3 or 5 years, and property investors in the UAE may be nominated for citizenship status. minimum investment is 750,000 AED, or approximately $204,000.
For 3- and 5-year residency permits, investors can purchase residential or commercial property in the “freehold” zones of the UAE, for at least 750,000 AED. Approved property types include residential or services apartments, villas, townhouses, hotel rooms, offices, and warehouses. Disputed real estate or separate plots of land are not eligible for the program.
Joint property ownership is allowed for legally married spouses who apply for a 3-year residency permit. They can invest a minimum of AED 1 000,000 or approximately $272,000 in real estate.
A mortgage is also supported by the UAE permanent residency program. The investor must make a 50% payment.
Investment property in the UAE can be used as a residence, rented out, and resold for the return of investment in 3 or 5 years. The UAE real estate market is one of the most flourishing in the world, showing a growth of approximately 40%–44% in prices and demand. Rental yield can reach 8%.
You can choose the UAE investment property remotely through Immigrant Invest. Our real estate expert team will help you select freehold real estate in the Emirates, eligible for the Property Investor Residence Visa program. We will also assist in reserving the object while your residency application is processing, and purchasing it when the application is approved. If you wish to resell the investment property in the future, we will arrange the best deal for you.
Immigrant Invest is a licensed agent for government programs in the Europe Union and the Caribbean.
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