Experts estimate a Dubai property can yield a return on investment (ROI) of between 5 to 7 percent and 7 to 9 percent. With such good returns — paired with the city’s robust infrastructure and strong government support — Dubai has become one of the most attractive locations for real estate investment. Here’s a brief guide to purchasing a home in Dubai, for either investment purposes or to be used as your residence in the city,
Who can purchase a home in Dubai?
Whether you’re a Dubai or UAE resident or a foreigner living outside the Emirates, you can purchase a home in Dubai. However, keep in mind that foreign ownership is only allowed in areas designated as freehold.
According to the UAE Government Portal, “Foreigners (who don’t live in the UAE) and expatriate residents may acquire freehold ownership rights over property without restriction, usufruct rights, or leasehold rights for up to 99 years.”
Below is a reference to freehold areas in the city.
| Apartments and Villas | |||
| Al Barari | Dubai Festival City | Jumeirah Golf Estates | Sobha Hartland |
| Al Furjan | Dubai Hills Estate | Jumeirah Village Circle | Sobha Hartland II |
| Al Khail Heights | Dubai Silicon Oasis | Meydan City | The World Islands |
| Al Warsan | Dubai South | Mohammad Bin | Tilal Al Ghaf |
| DAMAC Hills | Dubai Sport City | Rashid City | Town Square |
| DAMAC Hills 2 | Dubai Waterfront | Motor City | Wadi Al Safa 2 |
| DAMAC Lagoons | Dubailand | Mudon | Expo City |
| Dubai Islands | International City | Palm Jumeirah | |
| Apartments | |||
| Arjan | Dubai Harbor | Jumeirah Beach Residence | Mirdif Tulip |
| Barsha Heights | Dubai International Financial Center | Jumeirah Heights | Old Town |
| Bluewaters Island | Dubai Investment Park | Liwan | Park Gate Residences |
| Business Bay | Dubai Marina | Jumeirah Lake Towers | Remraam |
| Culture Village | Dubai Production City | Madinat Jumeirah Living | The Greens |
| Discovery Gardens | Dubai Residence Complex (Dubailand) | Mirdif Hills | The Views |
| Downtown Dubai | Dubai Science Park | Dubai Creek Harbor | Emaar Beachfront |
| Villas | |||
| Arabian Ranches | Jumeirah Islands | The Lakes | The Valley |
| Arabian Ranches 2 | Jumeirah Park | The Meadows | The Villa |
| Arabian Ranches 3 | Palm Jebel Ali | The Springs | The Sustainable City |
| Emirates Hills | Reem | ||
Requirements for foreigners who want to buy a Dubai home
Dubai’s real estate market welcomes non-resident investors. So, if you’re a foreigner thinking about purchasing a home in Dubai, you might be wondering what the requirements are.
First, know that you’re not obliged to get a residence visa when buying a property. What you need is a valid passport to help the involved entities confirm your identity. That said, a big perk that comes with buying a home in Dubai is getting the chance to obtain a residence visa, particularly a Golden Visa. In this program, if you’re investing in the UAE real estate market and your property has a total value of at least AED2 million, you’ll be qualified for a Golden Visa with a 10-year validity.
Many banks in the city and UAE also offer mortgage products, even for foreigners and expatriates. While specific requirements vary, you will need to meet a certain minimum salary (about AED12,000 to AED20,000 per month) before you can get a home loan. You may also need to submit bank statements and proof of work to demonstrate your financial capacity. The amount of downpayment you need to pay may also be different from that of a UAE national.
Read: UAE mortgage rates guide for 2024
What about taxes?
One of the perks of purchasing a home in Dubai is that you don’t have to pay income or inheritance tax on properties purchased in Dubai. However, if you’re a foreigner, you may have to pay income tax in the country where you currently reside.
For real estate investments in the city, you need to pay a 4 percent transfer fee. This is payable to the Dubai Land Department. There is also a monthly “housing fee,” which is about 5 percent of the average rental value in your home’s area.
Tips when purchasing a home in Dubai
Buying a home in Dubai — or any other place for that matter — is a huge financial decision. Here are some tips to consider.
- Carefully choose the location. Thoroughly research rental yields and the accessibility of basic services in the location you’ll choose. Weigh the pros and cons, and consider if the area suits the kind of atmosphere (e.g., upscale, a quiet neighborhood) you’re looking for.
- Beware of scams. When engaging with real estate agents and property developers, always double-check if they’re registered with Dubai’s Real Estate Regulatory Authority (RERA). You should also look into the current property rates to avoid overpaying. Additionally, investigate if the seller has, indeed, the legal right to sell the property. Note that unauthorized sales can lead to complicated legal disputes — on top of substantial financial loss.
- Ensure proper documentation. Safeguard your investment by insisting on all necessary documents. These include a Memorandum of Understanding (MOU) and a No Objection Certificate (NOC). Always confirm that these documents are duly signed by the involved parties.
Final thoughts
Dubai’s real estate market is ripe for investment, boasting potentially high ROI and zero income or inheritance taxes. Moreover, foreigners can buy homes easily in freehold areas and access mortgage options without needing a resident visa. While a 4 percent transfer fee and a modest housing fee apply, purchasing a home in Dubai is an overall wise move.
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