Many people look for new opportunities at different stages of their lives in order to achieve their various goals. Many individuals choose to leave their home countries and move to other cities and countries, with Dubai in the United Arab Emirates being one of the top destinations. Dubai is considered one of the best cities for real estate investment, suitable for both individuals and families at local, regional, and international levels. The emirate offers a wide range of services and recreational facilities that meet the diverse needs of its residents.
In this article, we will provide an overview of the process of buying property in Dubai for foreigners on installments, including legal procedures, steps, conditions, and the essential factors to consider.
Types of Properties in Dubai
Dubai offers a wide range of properties available for investment, the most prominent of which are the following:
- Residential Properties
These are the most abundant type of property in the United Arab Emirates in general, and in Dubai in particular. Many people are interested in buying apartments when they move to Dubai. Residential properties, such as apartments and villas, can be highly profitable for investors in Dubai, either through selling them one by one or renting them out to residents, earning annual or monthly income based on the prior agreement between the landlord and tenant.
It is also worth mentioning that residential land is available in Dubai. This land is designated solely for building residential properties and cannot be used to build other types of properties, such as commercial ones.
- Commercial Properties
These types of properties are rented or sold to business owners, allowing them to utilize commercial spaces to set up shops and stores, selling various goods and services to residents. Commercial properties can also include office spaces suitable for establishing different types of companies in Dubai. Similar to residential properties, there are also commercial land plots available, which cannot be used to build residential properties without going through several procedures with Dubai’s government offices.
As mentioned, properties in Dubai are divided into residential and commercial categories. We advise you to carefully consider the location before buying property in Dubai, thoroughly think it through, and learn everything related to it.
Advantages of Buying Property in Dubai
Many people are interested in moving to Dubai due to the new and exciting opportunities it offers for both individuals and families. Many seek a lifestyle characterized by luxury and safety, as well as unique properties for investment or residence. Below, we highlight some of the positive and negative aspects of buying property in Dubai to help you make an informed decision that aligns with your expectations. Carefully studying your options is essential for making the right choice.
Living in Dubai is considered one of the most exciting and enjoyable experiences. The United Arab Emirates, in general, and Dubai in particular, have introduced several significant changes that make many people want to relocate to the emirate. Dubai is a modern and popular destination that offers residents the opportunity to enjoy a high-quality social and professional life.
The Dubai government and other official authorities, including the Land Department, have worked to facilitate entry into the emirate and provide various services that help residents work and develop themselves. The government also offers many conveniences, such as the absence of an income tax, which allows individuals to earn more money without the burden of lengthy government procedures.
The climate of the United Arab Emirates, especially in Dubai, is mild for about 8 months of the year. Dubai’s skies are known for their pleasantness, not to mention the warm sea waters that are inviting for most of the year. Many residents spend their time with family at the beautiful beaches after a long day of work.
The emirate is home to many luxurious tourist attractions, such as the Burj Khalifa, which is the tallest tower in the world, and the well-maintained Dubai Fountain, which enhances the tourism and business sectors in Dubai. Moreover, there are numerous areas that are family-friendly, offering services that meet the various needs of families.
Additionally, a large number of major companies have chosen Dubai as their headquarters, providing excellent job opportunities for job seekers in the city. Several other areas in Dubai also offer ideal business opportunities, thanks to prominent business centers located near residential areas, such as the Dubai International Financial Centre and Dubai World Trade Centre, among others.
Dubai offers its residents a wide range of advanced services that meet the needs of all age groups and interests, from the best international universities to top schools, nurseries, sports clubs, shopping malls, and public parks. Additionally, there is an abundance of affordable public transportation thanks to the emirate’s stable economy and the country’s oil wealth. The emirate is home to branches of world-renowned universities, such as the American University and the German University.
Moreover, Dubai International Airport is one of the largest airports globally, providing easy access to various parts of the world from Dubai, further enhancing the city’s importance among global cities in many key sectors that contribute to its prosperity and strengthen its economy.
Affordable Luxury Properties
Dubai offers stunning and luxurious properties with beautiful views of the sea, such as those in Dubai Marina or Palm Jumeirah. These include villas, townhouses, penthouses, apartments in skyscrapers, and other modern options that are built to the highest engineering and global standards. Residential properties are often partially or fully serviced and enjoy amenities such as fitness centers, saunas, green spaces, and swimming pools.
Compared to similar properties in other cities worldwide, such as New York, Hong Kong, and London, luxury property prices in Dubai are very affordable. For example, prices for apartments in Dubai Marina start at 500,000 AED, while apartments in Palm Jumeirah begin at 614,000 AED.
Continuous Development
The United Arab Emirates in general, and Dubai in particular, are known for the efforts made by both the federal and emirate governments to develop various sectors, services, and businesses, including the real estate sector. As a result, Dubai offers many real estate projects under construction, which may appeal to investors looking to purchase properties in progress at lower prices and with high standards.
Stability and Security
The United Arab Emirates and Dubai are considered some of the safest places to live in the world. The government provides smart services to ensure safety and report crimes, in addition to successfully enforcing laws effectively across all areas and at all times.
Considerations Before Buying Property in Dubai
While Dubai is an ideal destination for living and investing, we advise anyone considering buying property in Dubai to keep certain factors in mind.
Additional Costs
One important piece of advice regarding the fees involved in buying property in Dubai is to be aware of the potential additional costs when seeking to own property in the emirate. Those purchasing directly from the developer may need to pay upfront fees to the Land Department, which amount to 4% of the property’s value, along with other administrative fees. Additionally, investors who obtain a mortgage must register this mortgage with the Land Department and pay a fee of 0.25% of the mortgage value.
Buying Property in Dubai and Registering It with the Dubai Land Department
In this section, we will guide you through everything you need to know about buying property in Dubai and registering it with the Dubai Land Department.
The first step in the property purchasing process in Dubai is to search for the type of property that suits your needs, whether residential, commercial, ready, or still under construction. You can use various search engines, reach out to one of the leading real estate development companies in Dubai.
Once you have selected the property you wish to buy, you will need to visit the registration offices at the Dubai Land Department, which is the authority responsible for regulating property ownership in Dubai. In this section, we will explain all the steps involved in registering the property.
Legal Procedures for Buying Property in Dubai: Registration with the Dubai Land Department
Regarding the procedures for buying property in Dubai, the Dubai Land Department offers several convenient options for property registration in Dubai.
The Sale Registration Request service allows you to submit a request for registering the sale of property in Dubai, whether it is a full or partial sale. This applies to the transaction between the parties involved (the seller and the buyer) or their legal representatives for registering the purchase of property, land, or a unit, whether it is ready or still under construction.
Required Documents for Property Sale Registration in the Dubai Land Department
To register a property sale request with the Dubai Land Department, certain documents and files must be provided, which are:
Required Documents for Individuals:
- Original Ownership Certificate
- Preliminary Sale Certificate, Statement Certificate
- Preliminary Registration Certificate
- Beneficial Ownership Certificate
- No Objection Certificate in Freehold Areas
- Sale Agreement in case of resale to senior citizens
- Emirates ID for both the seller and buyer to verify identity, or a valid passport for non-resident foreigners
- Legal Power of Attorney for those representing the seller or buyer
Required Documents for Companies
The entity must be registered with the Dubai Land Department in advance through the Company Registration Request Service.
Regarding the registration service fees, they are as follows:
- The seller pays 2% of the property’s value
- The buyer pays 2% of the property’s value
- 250 AED as the fee for issuing the property ownership certificate
- 100 AED as the fee for issuing a map related to land
- 250 AED for issuing a map for villas and apartments
- 10 AED innovation fee for each map
- 10 AED knowledge fee for each map
It is worth noting that the service procedures may differ depending on whether they are processed at service centers or online. Below are the step-by-step details of the procedures:
Steps for Registering the Sale Request via the Service Center
- Visit one of the service centers in Dubai and head to the Real Estate Registration Office at the Dubai Land Department.
- Submit the required documents to the employee and ensure that all files are complete without any missing items.
- The employee will enter the request and transaction details into the Dubai Land Department system and verify them.
- Pay the fees and obtain a payment receipt.
- Receive the outputs of the transaction.
Steps for Registering the Sale Request via the Dubai Land Department Website
- Send the required documents to the Registrar’s Office via email.
- Review the documents to ensure they are complete and free of any missing items.
- Enter the request details into the Dubai Land Department system and conduct a video call, which will be recorded, to confirm the service and verify all parties.
- The employee will send a payment link for the fees, which should then be paid.
- The employee will verify and send the transaction outputs.
It is worth noting that payment methods include a manager’s check issued in the name of the Dubai Land Department or via smart payment. The expected processing time for the transaction is between 25 and 35 minutes.
Conditions for Foreigners to Buy Property in Dubai
The Emirate of Dubai allows foreign residents to own various types of properties in Dubai, such as purchasing a home in Dubai for foreigners and registering them as previously mentioned in the section above, which prefers the property purchase process in Dubai. However, it is important to note that there are specific areas designated for foreign ownership, known as freehold areas, where foreigners can purchase property for sale. Some of the key freehold areas are:
- Dubai Marina
- Downtown Dubai
- International City
- Emirates Hills
- The Lakes
- Jumeirah Lake Towers
- Dubai Investment Park
- Jumeirah Beach Residences
- Arabian Ranches
- Dubai Sports City
- Motor City
- Business Bay
- International City
- Jebel Ali
Conditions for Buying Property in Dubai in Installments
Many banks in the UAE offer excellent services related to mortgage financing, allowing you to purchase property in Dubai in installments by benefiting from the mortgages provided by banks. You can also look for special offers, such as the offer from Damac Properties in collaboration with Abu Dhabi Islamic Bank, which provides the best real estate financing for buying Damac properties with ease. The offer grants financing at 1.99% for villas, apartments, and other great features that make it easier for those looking to buy a home in Dubai.
In the following section, we will provide a list of the best areas in Dubai, along with the most beautiful projects in these areas, to help you select the best from a variety of residential projects across different areas of Dubai.
Where Can You Buy Property in Dubai?
The Emirate of Dubai includes a wide range of well-served areas that cater to the various needs of its residents, providing for all their requirements.
The Dubai government focuses on developing these areas to make them more suitable for residents, whether individuals or families. Each area in Dubai stands out for its array of service and entertainment facilities, aimed at providing the best lifestyle for residents. Some of Dubai’s areas feature luxurious shopping centers, such as the world’s largest mall, the Dubai Mall located in Downtown Dubai, or stunning waterfronts like the Dubai Water Canal, which overlooks Dubai Marina.
Buying Property in Dubai Marina
Dubai Marina, located along the Dubai Water Canal, is one of the most sought-after areas for buying property in Dubai, particularly apartments. Many people are keen on buying property in Dubai Marina due to its unique and diverse features. It is conveniently close to Dubai Internet City, Business Bay, and Dubai Media City, and is home to skyscrapers overlooking the Dubai Water Canal.
The area is very well-serviced and offers numerous amenities, including restaurants, entertainment venues, and essential services like schools and universities, such as the American University in Dubai. Additionally, the area boasts the best residential and commercial properties, making it suitable for both individual professionals and families. It also provides two metro stations, making it easy for residents to commute to and from various parts of Dubai.
The area features several luxurious DAMAC properties projects, offering a new concept of living. You can choose from the apartments in the DAMAC Heights project, which is one of the best residential towers in Dubai Marina, offering stunning views of both the Arabian Gulf and Palm Jumeirah. The project also provides numerous amenities, including a spacious residents’ lounge, security services, a playroom, a cinema lounge, as well as a dedicated BBQ area, ample parking, separate steam rooms and saunas for men and women, in addition to large swimming pools.
You can find one-bedroom apartments, two-bedroom apartments, and three-bedroom apartments in the project. It also includes a wellness resort equipped with sauna and steam rooms, a tennis court, and a swimming pool, along with excellent reception services and a fitness club equipped with the latest gym equipment. Additionally, there are designated barbecue areas, allowing residents to enjoy special times, especially when spending time with friends..
Buying Property on Sheikh Zayed Road
Sheikh Zayed Road is the longest street in the United Arab Emirates, connecting all the emirates together. It spans a distance of 558.44 kilometers, linking Abu Dhabi to Ras Al Khaimah. The road offers a variety of services and amenities, in addition to a range of distinctive properties. It is also located close to famous tourist attractions such as the Burj Khalifa in Downtown Dubai. DAMAC Properties owns several iconic and unique projects on Sheikh Zayed Road, including Safa One De Grisogono, Safa Two De Grisogono, and Icon City, among others.
The street is also close to several shopping malls, including Mall of the Emirates and Wafi Mall, as well as being near beautiful beaches such as Jumeirah Beach, JBR Beach, and Kite Beach. It also offers various recreational activities held throughout different areas along Sheikh Zayed Road.
Sheikh Zayed Road is home to two of DAMAC Properties’ projects. One of these is the Paramount Tower Hotel & Residences Dubai, which is one of the most beautiful towers offering a range of apartments and hotel suites designed to meet the diverse needs of residents. It provides many excellent real estate investment opportunities in Dubai.
Buying Property in Dubai Business Bay
Business Bay is one of the most vibrant areas in Dubai, known for its liveliness and the numerous features it offers. It is one of the leading business hubs in the Middle East and the world, hosting a range of global companies that have either established their headquarters or opened branches in the area. This has encouraged many people to move to Dubai and work in one of these international companies.
It is worth mentioning that Business Bay is home to several shopping centers that cater to the various needs of residents, and the area is excellently connected through an advanced public transportation network, including the Dubai Metro and Dubai Tram.
The area offers stunning residential properties, considered among the most beautiful in Dubai. DAMAC Properties has a large number of diverse projects, including hotel, residential, and commercial developments in Business Bay.
Frequently Asked Questions
How can I calculate the value of a property I want to buy?
You can contact real estate agencies to learn more about property prices. Additionally, you can reach out to the developer directly, who will provide you with all the necessary details about the property’s value and help you calculate the mortgage financing that suits your plan.
Does buying property in Dubai grant residency?
Yes, buying property in Dubai can provide the opportunity to obtain residency. However, this is subject to specific terms and conditions set by the government of Dubai and the United Arab Emirates.
Can foreigners or expatriates buy a home in Dubai?
The ownership of homes and properties in Dubai by expatriates is subject to certain conditions, including:
- Foreigners are allowed to own properties in designated freehold areas in Dubai.
- Investors acquire full ownership of the property without any time restrictions.
- Property owners have the right to lease their property in accordance with regulations set by the relevant authorities.
- There are no age restrictions for investors purchasing property.
How long does it take to complete the purchase of a new property in Dubai?
Once the decision to buy a property in Dubai is made, the process—from signing the sale agreement to completing all transactions—typically takes around 30 days.
What fees will I need to pay when buying a property in Dubai?
When purchasing a property in Dubai, additional fees of 4% of the property value must be paid, along with other administrative charges. Additionally, a fee of 0.25% of the mortgage value is required when registering the mortgage with the Dubai Land Department.
How can I buy a property in Dubai with installment payments?
To purchase a property in Dubai through installment payments, you need to obtain a mortgage from one of the banks operating in the UAE or take advantage of special offers from certain companies.
Will I have to pay VAT on the property I want to buy in Dubai?
Residential properties are generally exempt from VAT, while commercial properties are subject to VAT. For mixed-use properties, the commercial portion is subject to VAT, while the residential portion is exempt.
Is VAT imposed on tenants in Dubai?
Landlords are not allowed to charge VAT on residential property rentals. However, VAT on commercial property rentals can be up to 5%.
What are the best areas to buy property in Dubai?
Due to the increasing demand for real estate in Dubai, several areas have seen unprecedented growth in real estate investment. Some of the best areas include Dubai Marina, Downtown Dubai, Palm Jumeirah, and Business Bay.
What are the procedures if I am unable to complete the payment for an off-plan property in Dubai?
The procedures for failing to complete the payment for an off-plan property vary depending on the percentage of payment made:
- If 80% of the property’s value has been paid, the developer has the right to retain the paid amount and sell the property in a public auction.
- If 60% of the property’s value has been paid, the developer can deduct 40% of the purchase price and terminate the contract.
- If less than 60% has been paid, the developer can deduct 25% of the purchase price and cancel the contract.
Where should a property be registered in Dubai?
After selecting the property you wish to purchase, you must visit the Trustee Offices of the Dubai Land Department (DLD), which is the regulatory authority responsible for overseeing property ownership in Dubai.
What fees must be paid for property registration?
The following are the service fees for property registration with the Dubai Land Department:
- 2% of the property value is paid by the seller
- 2% of the property value is paid by the buyer
- AED 250 for issuing a property Title Deed
- AED 100 for issuing a land map
- AED 250 for issuing a villa or apartment map
- AED 10 for Innovation Fee per charge
- AED 10 for Knowledge Fee per charge
Thank you! Hope it was helpful!
