In 2002, Dubai passed laws allowing foreigners to purchase freehold properties, which became a turning point for the city's and country's real estate markets. Since then, Dubai has become a major global investment centre. Foreigners interested in buying property in Dubai, including non-residents and ex-pats living in the UAE, have been steadily attracted by the wide range of properties, healthy returns on investment and well-regulated market.
Among the most common questions about Dubai's real estate market is ‘Can foreigners buy a house here?’
The purchase of real estate in Dubai can be conducted on a freehold basis by foreigners, both ex-pat residents and non-resident investors. In this way, foreign nationals can purchase, sell, or lease real estate in Dubai. Nevertheless, foreigners should be aware that buying freehold property in Dubai is only permitted in designated zones, as laid out by the government.
Foreigners who buy real estate in Dubai have various benefits. Here is a list of benefits you can expect to enjoy in this strategically located emirate if you decide to invest in Dubai's real estate industry.
Dubai's competitive prices make it one of the most attractive cosmopolitan cities. According to Knight Frank's 2019 Wealth Report, an average price-per-square-foot stands at $1,629 in Shanghai, $2,020 in Paris and $2,994 in London, while it stands at only $650 in Dubai. Dubai is the best place in the world to buy luxury properties because of this factor.
Due to its competitive price level, overseas investors can get more value for their money while benefiting from a property in a cosmopolitan destination with excellent business infrastructure and a high-end lifestyle.
In addition to high rental returns, foreigners purchasing property in Dubai will also benefit from high returns on their investment. For example, villas in Dubai have an average ROI of 6%, while apartments have rental yields averaging 7.5% on average.
Dubai also offers an investor-friendly tax system for foreigners looking to buy property. Currently, UAE investors can enjoy healthy returns on their properties since there is no tax on property purchases or rental incomes.
Investment in real estate can also lead to a residence visa for foreign nationals interested in living in the UAE. Real estate investors with properties worth more than AED 5M (USD 1,36M) can qualify for a five-year residency permit in the UAE, provided that they also meet other requirements.
Furthermore, Dubai Tourism has launched Retire in Dubai, a program in partnership with the General Directorate for Residency and Foreign Affairs (GDRFA) that allows foreign nationals over 55 to qualify for a 5-year residency visa if they own property worth up to AED 2M (USD 544.5k).
In this way, foreigners who purchase property in Dubai can also acquire a residency visa and live in a cosmopolitan city.
Property management companies can assist foreign nationals who wish to purchase properties in Dubai for investment purposes. These companies will take care of legalities and maintain the properties.
Dubai offers a wide range of property management companies. Investors from abroad can use Dubai property management tips to find a company to manage their investments in the city.
Anyone considering investing in real estate, or buying a home, should take this step very seriously. Everyone's dream is to have a place that you can call your own. The primary benefits a homeowner in Dubai can receive after investing in their own home are listed above. Therefore, if you are a foreigner seeking investment opportunities, Dubai is the place for you.
A place in Dubai is like owning a piece of paradise because the city is constantly building new skyscrapers, beachfront residences, and so on. Therefore, investing here is a good idea.
With this information, you are in a great position to find properties and plots in Dubai. Happy hunting with Gulf Realtor!
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