The real estate market of the United Arab Emirates attracts investors from all over the world with its rapid development, high level of profitability and stability. Many apartment complexes and villas in Dubai are built in areas where foreigners are allowed to buy them. When investors purchase real estate in the UAE, they may gain an additional source of income and become eligible for a UAE Golden Visa.  This article will provide you with basic guidance that you must know before considering buying a property in the UAE.

Who can buy property in the United Arab Emirates?

UAE nationals can buy property anywhere in the country with full ownership. This rule also applies to citizens of Saudi Arabia, Oman, Bahrain, Kuwait, and Qatar. 

For foreigners from other countries, buying property is a bit different. They can only fully own property in special areas known as freehold zones. Outside these zones, foreigners can only lease property, not own it outright. 

With a tenancy, you own the building for 50–99 years, but not the land it’s on.

In freehold zones, where you can fully own property, foreigners can also qualify for the UAE Golden Visa. There are 50 freehold zones in Dubai and around 9 in Abu Dhabi.

How to find the right property in UAE?

When looking for a property in the UAE, it is advisable that you take into account different factors before making a decision. First of all, you should avoid jumping directly into buying a property at all costs. On the other hand, you may have certain preferences regarding the features of the property. However, that’s not all. So if you want to buy a house in UAE, it may help to take the following aspects into account:

See different locations

The first thing you have to do when looking for a property is to check different places in the country, in order to determine which is the best place to buy. Whether you are planning to purchase a property to live with your family or rent, it is essential that you choose the ideal location.

Suppose you’re moving to the country and you buy a house in the wrong place. In that case, your loved ones may end up coming to the conclusion that moving to the UAE was not the best decision from a personal point of view. Similarly, when purchasing a property to rent it is important that you find the best location to attract tenants.

Look at the traffic level

UAE is a country with a lot of traffic. And this can be problematic for most people. In fact, every day you will see that the highway that leads to the city center suffers from very dense traffic. Therefore, if you want to commute to work every day, you should look for a property that is close to the center.

Ease of parking

If the property you choose does not have covered or underground parking, then the extreme heat will cause your vehicle to overheat, so you could have problems using it.

Documents required for buying property in UAE as a foreigner 

The list of documents may vary depending on the circumstances of the purchase of the property and emirate but here are the documents a foreigner usually needs to prepare:

• Passport.

• To buy property in the UAE, you’ll need a current residence visa or permission to reside in the UAE. 

• You’ll also need a Sale and Purchase Agreement, often called a Memorandum of Understanding or Contract F, which outlines the terms of the purchase. 

• If you’re buying a property on the secondary market, you’ll need a No Objection Certificate from the developer or previous owner to confirm there are no outstanding charges and ownership can be transferred. 

• If you’re using an agent or representative, a Power of Attorney is required.

• If you’re buying the property with a mortgage, you must get pre-approval before signing the sale agreement. 

• Once all the legal steps are completed, the property title deed will be issued in your name, making you an official property owner in the UAE. 

Key Takeaway 

Buying property in the UAE, especially investing in real estate in Dubai as a foreigner can be a lucrative investment, offering both high profitability and stability in a rapidly developing market. By preparing the necessary documents and following the outlined steps, foreigners can navigate the real estate market effectively and secure a valuable asset in the UAE.