The United Arab Emirates (UAE) has long been a magnet for global investors, with its dynamic economy, strategic location, and world-class infrastructure. In recent years, the government has introduced sweeping visa reforms and 100 percent foreign ownership laws, fundamentally transforming the real estate investment landscape. As we move through 2025, these regulatory changes are driving unprecedented growth, reshaping investor profiles, and redefining the future of property ownership in the UAE.
Overview of UAE visa reforms and foreign ownership laws
Major visa reforms
- Golden Visa program: Offers 10-year renewable residency to investors, entrepreneurs, and skilled professionals. Real estate investors qualify by purchasing property worth at least AED2 million.
- Investor visas: New pathways for 2-year and 5-year residency for property investments as low as AED750,000 and AED1 million, respectively.
- Flexible work and start-up visas: Attract global talent and entrepreneurs, further boosting demand for residential and commercial properties.
100 percent foreign ownership law
- Federal decree-law No. 26 of 2020: Allows foreign investors to own 100 percent of onshore companies and properties in designated freehold areas, removing the previous 49 percent cap and Emirati sponsor requirement.
- Expanded freehold zones: Both Dubai and Abu Dhabi have increased the number of areas where foreigners can own property outright, making the market more accessible than ever.
How visa reforms are reshaping real estate investment
Long-term residency drives demand
Firas Al Msaddi, CEO of fäm Properties, highlights to Economy Middle East that visa reforms, especially the Golden Visa, have significantly impacted foreign investor confidence. “Long-term options like the Golden Visa have given buyers greater reassurance that they can live and invest here without uncertainty,” he states. This added layer of security has encouraged more investors to put down roots in the UAE.
“These policies are not just about selling homes; they’re about retaining talent and building a knowledge economy,” Al Msaddi asserts. By encouraging foreign investors to establish roots in the UAE, these reforms are driving sustainable demand for real estate, aligning seamlessly with the country’s broader economic diversification strategy.
The introduction and expansion of the Golden Visa and other long-term residency options have made the UAE a more attractive destination for expatriates and global investors. These reforms provide:
- Security and stability: Investors can reside in the UAE without frequent visa renewals, encouraging long-term property ownership.
- Family sponsorship: Golden Visa holders can sponsor their spouses and children, making the UAE a viable option for family relocation.
- Broader investor base: The lower investment thresholds for 2-year and 5-year visas have opened the market to mid-tier investors, not just high-net-worth individuals.
Impact on property segments
- Luxury segment: High-net-worth individuals are increasingly investing in luxury villas, waterfront properties, and branded residences, drawn by the security of long-term residency.
- Mid-range and off-plan properties: Flexible payment plans and lower visa thresholds have boosted demand for off-plan and mid-range properties, with off-plan sales accounting for over 60 percent of transactions in 2024.
- Short-term rentals: The rise of digital nomads and flexible visa options has fueled demand for short-term rental properties, offering higher yields for investors.
Case study: Abu Dhabi and Dubai
- Abu Dhabi: Visa reforms have attracted a new wave of expatriates and investors, particularly in off-plan developments and luxury segments.
- Dubai: The city recorded 180,900 real estate transactions worth AED522.1 billion ($142.1 billion) in 2024, a 36 percent increase in sales and a 27 percent rise in value year-on-year, largely attributed to visa reforms. Al Msaddi notes that “the timing of the Golden Visa was perfect because the city’s infrastructure had matured to a point where it became truly world-class.”
100 percent foreign ownership: A game changer
Key provisions
- Full ownership rights: Foreigners can now own 100 percent of companies and properties in designated areas, with no need for a local sponsor or partner.
- Wider range of activities: Over 1,000 commercial and industrial activities are open to full foreign ownership, including real estate development and management.
- Simplified processes: The documentation and registration process for foreign buyers has been streamlined, with digital verification and faster dispute resolution.
Impact on UAE real estate investment
- Increased foreign direct investment (FDI): The removal of ownership restrictions has led to a surge in FDI, with international investors viewing the UAE as a safe and profitable market. “Having access to reliable data makes a massive difference,” Al Msaddi explains, highlighting that a transparent legal framework gives investors the confidence to commit.
- Corporate real estate expansion: Multinational companies are establishing regional headquarters and investing in commercial real estate, driving demand for office and mixed-use developments.
- Enhanced market transparency: New regulations require developers to place buyers’ funds in escrow accounts and comply with stricter reporting standards, reducing risk and increasing investor confidence.
“The ongoing visa reforms with respect to the Golden Visa and other policy changes have had a direct and measurable impact on investor sentiment. We’ve seen consistent engagement across Bayut, particularly in the investment-grade segments which include communities like Dubai South, Al Furjan, DIP and more. These policies have provided long-term security and clarity, making the UAE a much more appealing place to deploy capital into real estate. For us, that translates into higher lead volumes, stronger conversion rates and longer-term investment cycles,” Fibha Ahmed, VP of Property Sales at Bayut, told Economy Middle East.
“The Golden Visa and the 10-year property-linked residency options have had the most immediate and measurable impact. These categories offer long-term security and flexibility, which directly influence investment confidence.”
“More recently, the First Time Home Buyers initiative launched by the Dubai Land Department, in partnership with developers and banks, is also making waves. It targets end-users and new investors by offering access to exclusive inventory and attractive financing terms. This initiative is particularly powerful because it speaks to a younger, upwardly mobile demographic and encourages long-term commitment to the market. For us, this creates new lead funnels and drives stronger sales activity across both ready and off-plan segments,” Ahmed further noted.
Faisal Durrani, partner – head of Research, Knight Frank MENA, shared with Economy Middle East, “What we’re witnessing is the result of a concerted, long-term strategy by the UAE authorities: the broadening of residency options, especially post-pandemic, has instilled a sense of sustained confidence among foreign investors in real estate, particularly in Dubai. The uptick in home sales and the positive momentum in the market are a testament to investor sentiment being buoyed by clear, forward-thinking government policy. For an emerging market like Dubai, sentiment is everything. When it’s positive, as we see now, it translates almost instantly into record sales volumes and enduring demand. However, there are still opportunities in the market for boosting FDI into the real estate sector further.”
Durrani noted that, “There have been challenges around the relative transparency of data for international investors, many of whom have to complete their due diligence checks overseas, and by the time they have completed that process, the asset they were interested in has already traded locally because investors within Dubai are more familiar with market conditions.”
He explained that, “Historically, there were also challenges around the length of lease tenures for commercial assets. But now, 3–4-year leases are very similar to what you might find in Asia, putting it on par with what global institutional investors are increasingly becoming comfortable with. A third challenge was always around the strength of the lease covenant, making sure that we’ve got large international blue-chip occupiers in commercial assets, but these challenges are gradually ebbing as domestic real estate market conditions, particularly in the commercial market, remain positive and favourable. It’s the complete opposite of what we’re seeing in other global markets. We know, for example, that Grade A occupancy levels are sitting at 95 percent plus-plus. We know that the vast majority of the workforce has been keen to get back into the office in the wake of the pandemic, not only because of positive government encouragement, but also because for some people in these expat-dominated cities in the UAE, their social lives revolve around the office. They also don’t necessarily face the same long, difficult, and expensive commutes that their counterparts deal with in other major global cities.”
“These reforms are integral to the UAE’s broader economic vision. By attracting global talent and foreign investment with a flexible, innovative approach to residency, the UAE isn’t just supporting its real estate sector—it’s laying the groundwork for more robust economic diversification. Every new reform, every tweak to residency and ownership, signals to the world that the UAE is open, ambitious, and welcoming of global capital and ideas.”
Durrani emphasized the significant impact of specific visa categories, particularly the Golden Visa, on attracting foreign investment in the Dubai real estate market. He noted that while the Golden Visa has enhanced the market’s appeal to international investors, the ultra-high-net-worth segment is still largely influenced by lifestyle, education, connectivity, and the cosmopolitan nature of the city. Durrani explained that while the Golden Visa is not necessarily the deciding factor for the super-prime bracket, it has made Dubai real estate accessible and attractive to a broader pool of buyers. He also pointed out a notable trend: back in 2008–2009, around 25 to 30 percent of homes were resold within 12 months of transaction, whereas today, that percentage has dropped to about 4 percent or 5 percent. This shift indicates that buyers are now purchasing homes primarily for personal use rather than for speculative investment.
In addition, Durrani addressed the immediate impact of the 100 percent foreign ownership laws on real estate prices and market activity, stating that within commercial real estate, these laws, along with other reforms, have enhanced Dubai’s reputation as a high-quality, investment-grade market. However, he emphasized that it’s never just one law; it’s the cumulative effect of multiple, coordinated policy changes that underpins the surge in market activity and investor interest. Attempting to isolate the impact of foreign ownership alone would overlook the bigger picture.
Also, he explained how recent reforms have changed the competitive landscape for local versus foreign investors, stating that these reforms have raised the bar across the board. The influx of international capital has encouraged developers to improve their offerings. For instance, in terms of ESG, global institutions are mandated to secure green-rated assets. While Dubai and the wider region have developed many green-rated assets, very few are recognized by internationally accepted green credentials that global institutions understand, such as LEED, BREEAM, WiredScore, or WELL ratings. These are the standards that investors will be looking for.
“That prompts local developers to incorporate the ratings in their products because it gives them a cleaner exit strategy. Overall, the market is bigger, more competitive, and more compelling to both global and local investors as a result of more FDI.”
Market performance and investment trends in 2025
Transaction volumes and price growth
- Dubai: Deal volumes exceeded AED400 billion in the first half of 2025, reflecting strong investor confidence and sustained demand.
- Price Increases: Property prices in prime locations are forecast to rise by 8–12 percent in 2025, with rental yields projected at 8 percent for short-term and up to 13 percent for long-term rentals.
- New Developments: Major projects announced in 2025 include luxury residential towers, waterfront communities, and mixed-use developments in Palm Jebel Ali and Dubai Design District.
Investor demographics
- Global buyers: Investors from Europe, Asia, and the Middle East are increasingly active, attracted by the UAE’s stability, tax advantages, and residency benefits.
- Corporate investors: Companies are acquiring commercial properties for regional operations, leveraging the 100 percent ownership law.
Technology and sustainability
- Smart homes: Integration of smart technology and energy-efficient systems is becoming standard in new developments, enhancing property value and appeal.
- Sustainable properties: There is a growing focus on green buildings and eco-friendly materials, aligning with global ESG trends and investor preferences.
Key benefits for investors
Commenting to Economy Middle East, Haider Tuaima, managing director and head of Real Estate Research, ValuStrat, said, “The Golden Visa is expected to continue attracting global investors by offering long-term residency benefits. Supported by robust economic growth, rising demand, population expansion, and increasing market maturity, Dubai’s residential market is set to maintain a positive trajectory in 2025, albeit at a slower pace, with capital values projected to rise by an average of 18 percent.”
“Housing demand will remain resilient, particularly in the low- and mid-income segments, driven by a growing population and sustained buyer confidence, though momentum may ease slightly compared to 2024,” Tuaima noted.
“Office space demand has also seen a notable upswing, fuelled by government initiatives such as the Golden and Green Visa programs, company law reforms, and the removal of the Emirati shareholder requirement for certain onshore entities. Further demand is being generated by the rise in new business start-ups and the continued expansion of established firms.”
Benefit | Description |
Long-term residency | Golden Visa and other investor visas offer 2, 5, or 10-year renewable residency. |
Full ownership rights | 100 percent ownership of property and companies in designated areas, no local sponsor needed. |
High rental yields | Rental yields of 8–13 percent in 2025, especially in short-term and prime locations. |
Capital appreciation | Property prices in prime areas forecast to rise 8–12 percent in 2025. |
Market transparency | Enhanced buyer protections, escrow accounts, and digital processes. |
Tax advantages | No personal income tax, capital gains tax, or property tax for most investors. |
Family sponsorship | Ability to sponsor spouse and children under long-term visas. |
Flexible payment plans | Up to 10-year payment plans for off-plan properties. |
The long-term effects of the recent visa reforms on the UAE’s economic diversification strategy are already becoming evident. By encouraging foreign investors and end-users to establish roots in the UAE, these reforms are driving sustainable demand for real estate. This demand directly supports vital sectors such as construction, finance, tourism, and retail. For the UAE, this aligns seamlessly with its broader diversification strategy, which emphasizes people, infrastructure, and private sector growth. At Bayut, we are facilitating this vision through technology. Our tools, such as TruEstimate, provide users with real-time price guidance based on actual transaction data, fostering market transparency and confidence. Additionally, our TruBroker program connects buyers with high-performing agents, while the newly launched TruBroker Stories adds authenticity and social validation to the process. When individuals feel informed and connected to trusted professionals, they are more likely to make long-term investments, demonstrating how policy and PropTech can create real impact, stated Ahmed.
The recent laws have changed the competitive landscape for local versus foreign investors by leveling the playing field. While local investors still maintain a significant advantage due to their familiarity and established relationships, foreign investors now enjoy greater autonomy and certainty. This shift increases competition and raises the standards for quality developments and service delivery, according to the expert.
Challenges and considerations
Despite the positive reforms, foreign investors continue to face challenges, primarily related to familiarity with local processes and regulations. Platforms like Bayut are uniquely positioned to assist in this area by offering authenticated listings, data-backed decision-making tools, and a network of trusted brokers. While the intent from regulators is clearly investor-friendly, the execution support is still in the process of catching up, explained Ahmed. Conversely, Al Msaddi points out that while the reforms have made the UAE one of the most welcoming property markets globally, “as demand grows in prime locations, pricing naturally reflects this interest.”
Mortgage and financing
- Higher rates for non-residents: Non-resident buyers face mortgage rates of 4.99–5.49 percent, compared to 3.99 percent for residents, and higher down payment requirements (25–40 percent).
- Upfront costs: As of February 2025, banks no longer finance Dubai Land Department (DLD) fees (4 percent) and broker commissions (2 percent), increasing upfront cash requirements.
Regulatory compliance
- AML and KYC: Stricter anti-money laundering (AML) and know-your-customer (KYC) regulations require thorough documentation and due diligence.
- Escrow and reporting: Developers must comply with enhanced escrow and reporting requirements, increasing transparency but also administrative complexity.
Market risks
- Supply and Demand Imbalances: While demand is strong, oversupply in certain segments could impact price growth in the medium term.
- Global Economic Factors: Fluctuations in global markets, interest rates, and geopolitical events can influence investor sentiment and capital flows.
The influence of these ownership laws on the overall attractiveness of the UAE as a global investment hub is significant. By allowing full ownership, these laws align with investor expectations in a global economy and serve as a gateway for broader business expansion. From our perspective, this enhances the lifetime value of buyers on our platform and fosters deeper engagement across multiple sectors, highlighted Ahmed.
In comparison to other countries in the region, Ahmed said, “the UAE is far ahead in terms of clarity, ambition, and execution. Many regional markets talk about investor-friendly policies, but the UAE has consistently delivered on implementation. That’s why we’re seeing long-term capital flow here and why Bayut continues to attract record traffic from both regional and global audiences.”
Furthermore, Durrani expressed his belief that the authorities in Dubai and the UAE are continually working behind the scenes to ensure that Dubai and the UAE remain competitive on the global stage.
“I think the authorities in Dubai and the UAE are constantly working behind the scenes to try to make sure that Dubai and the UAE remain competitive on the global stage. We cannot speculate on what visa reforms, if any, are yet to come, but what has been achieved so far has been tremendously positive and has undoubtedly contributed to the performance that the market has seen in this cycle.”
Frequently asked questions (FAQs)
Can foreigners buy property in the UAE in 2025?
Yes. Foreign nationals can buy property in designated freehold areas across the UAE, with full ownership rights. Both residents and non-residents are eligible, and the process is streamlined and transparent.
What are the requirements for a UAE Golden Visa through real estate investment in 2025?
- 10-year Golden Visa: Invest in completed or off-plan real estate worth at least AED2 million. Property can be mortgaged, but a bank NOC is required.
- 5-year visa: Own one or more freehold properties with a combined value of at least AED1 million, fully paid or with a mortgage covering ≤50 percent of the value.
- 2-year visa: Own a residential property in Dubai worth at least AED750,000 (mortgaged properties accepted if you’ve paid a minimum of AED750,000 and provide a bank NOC).
What is the process for buying property in Dubai as a foreigner?
- Research and shortlist: Identify preferred areas and property types.
- Engage a RERA-certified agent: For market insights and guidance.
- Make an offer and sign MOU: Agree on price and sign a Memorandum of Understanding (MOU).
- Obtain NOC: Seller secures a No Objection Certificate from the developer.
- Transfer ownership: Complete the transaction at a DLD Trustee office and receive the Title Deed.
Are there any taxes on property ownership or rental income in the UAE?
There is no personal income tax, capital gains tax, or property tax for most investors in the UAE. However, there are transaction fees (typically 4 percent DLD fee in Dubai) and service charges for property maintenance.
How have the new laws affected UAE real estate prices and returns in 2025?
- Price growth: Prime locations are seeing price increases of 8–12 percent in 2025.
- Rental yields: Short-term rentals yield around 8 percent, while long-term rentals can reach up to 13 percent.
- Transaction volumes: Dubai recorded over AED400 billion in real estate transactions in H1 2025.
What protections exist for buyers and investors?
- Escrow accounts: Buyer funds are held in escrow for off-plan projects, reducing risk.
- Digital verification: Property details and transactions are digitally verified for transparency.
- Dispute resolution: Faster and more effective mechanisms for resolving disputes.
Can companies own real estate in the UAE?
Yes. Under the 100 percent foreign ownership law, companies established by foreign nationals can own property and operate in over 1,000 commercial and industrial activities, including real estate development.
Final word
The UAE’s bold visa reforms and 100 percent foreign ownership laws have ushered in a new era for real estate investment in 2025. The country offers long-term residency, full ownership rights, and a transparent regulatory environment. These factors position it as a global hub for property investors, entrepreneurs, and multinational corporations.
The impact is clear: record transaction volumes, rising property values, and a more diverse investor base. While challenges remain—such as higher financing costs for non-residents and the need for regulatory compliance—the overall outlook is overwhelmingly positive.
For investors seeking security, high returns, and a foothold in one of the world’s most dynamic markets, the UAE real estate sector in 2025 offers unparalleled opportunities.
