Dubai’s attractive real estate market draws a large number of foreign investors due to its tax-friendly environment, strong property appreciation, and high rental yields. The emirate’s booming economy is supported by diversified factors, including tourism, logistics, finance, etc., which provide a stable foundation for the real estate market. Seeking an accurate answer to how to buy property in Dubai as a foreigner, you can rest assured, because Miva Real Estate is here to help you.
However, whether you’re purchasing a property for the first time or have experience of property buying before, even under the most favorable conditions, it can be extremely stressful and risky to navigate this process without expert advice. As a leading real estate company in Dubai, Miva Real Estate provides the right assistance for property buyers, ensuring a hassle-free property-buying journey for them.
With new projects and developments constantly emerging, diverse property options are available. If you’re seeking to secure a lucrative property investment in Dubai, Miva Real Estate’s Buyers Guide will guarantee you make an informed and beneficial investment.
How to Buy Property in Dubai: Simple & Effective Guide
1. Eligibility
The first thing that we’re covering in our Buyers Guide for Dubai Property is who is eligible to make a property purchase in the UAE’s glittering emirate. Irrespective of your physical address or nationality, you can buy a property in this glamorous city. The emirate is a desirable location for foreign real estate investors due to its stellar capital growth and wealth preservation potential. Expatriates can secure a property investment in Dubai without any need to acquire UAE residency.
2. Required Documents for Buying Property in Dubai
As an Individual
- Copies of a valid passport, which serves as the prime identification document.
- Form B, or the buyer’s agent agreement, is a mandated document that makes a real estate agent eligible to exclusively work on the buyer’s behalf.
As a Company
- Certificate of Incorporation
- MOA/AOA
- Form B, which is a signed buyer agreement.
- Proof of authorized signatories, which is often verified by corporate resolution.
- Power of Attorney
As an Overseas Company
- Documents discussed must be attested by the UAE Embassy
- Form B, which is a signed buyer agreement.
3. Residence Visa
The third aspect that we’ll discuss in this guide to buying property in Dubai is whether foreign real estate investors are granted a residency visa. Adding more benefits to a lucrative property investment in this glamorous city, several types of property investment visas are granted to expatriates who legalize their residency in the Emirates for a certain period. Different regulations are implied, including a property purchase of AED 1,000,000 can allow you to secure a residency visa of 2 years, and an investment on one or more properties of at least AED 2 million will allow you to secure a Golden visa. However, foreign investors must stay updated with the evolving regulations associated with a residency visa, which is granted with a property investment in Dubai.
4. Freehold & Leasehold
This Dubai property buying guide will help you differentiate two important aspects related to property investment in this glamorous emirate. As an expatriate, you can purchase two types of properties here; freehold and leasehold. Buying a freehold property will grant you ownership of both the property and the land it occupies, offering you full control to lease, sell, or rent it.
However, in the case of leasehold properties, you are not granted the property’s ownership and you only secure its lease agreement for a specific period, which can vary from 33 to 99 years. Miva Real Estate’s buyers guide for property investment in Dubai does not always favor freehold property investment as a lucrative investment, as for some buyers leasehold options can prove to be more beneficial.
5. Government Taxation
Another important aspect that is covered in this property buying guide Dubai is any type of government tax associated with property investment in the emirate. Generally, no official government taxation is associated with it; however, you have to register the newly purchased property with the DLD, which features a registration fee of 4% of the total value of the property. Additionally, if you have secured a mortgage for the property investment, you will be subjected to a registration fee of 0.25% of the mortgage value to the DLD.
6. Fees Involved
Our buyers guide for Dubai property will assist you in exploring the different fees that you’ll have to pay while making a property investment in the emirate. For transferring the ownership rights from the seller to the buyer, a mandatory 4% transfer fee of the total property sales price needs to be paid to the DLD. In case you’re financing your property with a mortgage, you’ll be subjected to a 0.25% mortgage fee that must be paid to the DLD and the developer.
Additionally, if you’re buying a completed property, you’ll be responsible for a pro-rata share of the service maintenance fee, which will be subject from the date of ownership transfer until the end of the maintenance period. To secure an NOC from the property’s developer, you have to pay a fee of AED 500 to AED 5,000, which is developer and transaction-specific. For ready property with a title deed and off-plan properties for sale in Dubai, you’ll be subjected to property registration trustee charges of AED 4,000 and AED 5,000, respectively. In return for providing expert assistance, Miva Real Estate charges a 2% commission fee on each property purchase from clients.
7. Service Charges
Another important aspect that is covered in this property buying guide Dubai is any type of government tax associated with property investment in the emirate. Generally, no official government taxation is associated with it; however, you have to register the newly purchased property with the DLD, which features a registration fee of 4% of the total value of the property. Additionally, if you have secured a mortgage for the property investment, you will be subjected to a registration fee of 0.25% of the mortgage value to the DLD.
8. Developers’ Obligations
The next aspect in the buyers guide for Dubai property purchase is developer’s obligations that are generally associated with off-plan properties, which means properties that are purchased before the completion of the construction. This features a sales and purchase agreement, which is essential to secure, as it confirms the estimated handover date and other details. Additionally, once the off-plan property is handed over to the buyer, The developer remains obligated to offer a 10-year warranty for property maintenance.
Contact Miva Real Estate – Your Trusted Property Expert
Hopefully, Miva Real Estate’s simple yet effective buyers guide for Dubai property purchases provides answers to your queries regarding property purchases in this glitzy emirate. Buying a property in Dubai is a rewarding investment, thanks to the city’s strong property value appreciation, booming real estate sector, high rental yields, etc. You can make your property investment journey more simplified with Miva Real Estate.
As a leading real estate company in Dubai, UAE, we will simplify this complex process for you with our expert local market knowledge, exclusive property listings, and end-to-end buying assistance. Get ready to secure the best property investment in Dubai, contact Miva Real Estate today!