When we are talking about luxury holiday destinations, the first place that comes to everyone’s mind is Dubai. While located in the middle of a desert, a tremendous amount of money has gone into developing this place, with the main focus being luxury. This development means that prices are going up rapidly, and investing right now might be the best decision you can make. The perks of buying property in Dubai are that you don’t need a visa and can simply purchase property with just your passport. The whole process is very simple, which is made even more simple thanks to different real estate agencies that help foreigners invest in Dubai’s real estate market. So now, let’s take a closer look at how we can purchase real estate in Dubai and what we will be needing.
Things you should know about buying real estate in Dubai
- Dubai opened its residential market to foreigners in 2002
- There are specifically dedicated spaces where foreigners can purchase properties
- Dubai is a tax-free city
- Foreign residents can get Dubai visas by investing in property
- Foreigners need to have valid passports in order to purchase real estate in Dubai. A visa is not required
Step by step guide on buying real estate in Dubai
When purchasing real estate in different parts of the world, we will encounter one thing, especially if we are not residents of that country, and that’s how hard and complex it is to finalize the purchase. But in Dubai’s case, things are much easier, as Dubai made it easier for people to invest in this fast-developing part of the world. Now, let’s take a look at how you can purchase real estate in Dubai, and what you will be needing.
Choose a location
The first thing you need to do when purchasing a property in Dubai is to choose a location. While it is easy to purchase a property in Dubai with very few requirements, one thing needs to be taken into consideration. When arriving in Dubai, foreigners can not purchase real estate just anywhere they like, as Dubai has specific locations designed for foreign buyers. These places are called leasehold areas and they are usually near the city center. When purchasing a leasehold property, you receive property rights for a certain period of time. There are also dedicated freehold areas, that are scattered all over the emirates, where foreign buyers can purchase properties. When purchasing a property in a freehold area, you are becoming a legal owner of the building and the land it stands on, on a permanent basis. But, make sure to check the latest information regarding these places, as the number of available units and these dedicated spaces increases very frequently.
Find a real estate agent
When deciding to purchase a property in Dubai, you can do it independently, but as you can imagine it’s going to take significantly longer and you might end up running into a bunch of problems. Because of this, we suggest that you look for good and reputable real estate agencies. These agencies know what they are doing, and they will provide you with the highest quality of service, show you the best available properties, prepare the necessary documentation, and take care of everything.
One of the most attractive things regarding the Dubai real estate market is that you don’t need to have a bunch of documents or permits in order to purchase real estate in Dubai. When deciding to purchase real estate in Dubai, all you need to do is to make sure that you have a valid passport and everything else is straightforward.
The first step is to find the real estate you wish to purchase and talk to the developer about the prices. This can be done independently, but having a good real estate agent will be very helpful. These properties can be purchased with cash, crypto, or through a mortgage. While purchasing with a mortgage might seem good, paying with crypto and cash is much better. When dealing with crypto or cash, you have the ability to negotiate regarding the prices and can generally purchase property for cheaper.
Once you have selected the property and made the developer aware of our desire to purchase this property, you have to sign a sales agreement called MOU. When buying Dubai real estate, it is mandatory to have a witness present when signing the sales agreement, usually, this witness is a real estate agent. You also need to make a standard 10% safety deposit to the Registration Trustee, and you will receive it back once the sale is finalized.
After this, you, along with the real estate agent, will need to meet a seller and sign a No Objection Certificate in order to transfer ownership of the property. After this, you and the seller will need to go to the Dubai Land Department office where you can finalize the purchase. While there you will need to provide the following documents and the transfer will be finalized.
- Check issued to the seller for purchasing the property
- Identification documents of the seller and buyer
- Original No Objection Certificate
- Signed MOU documentation
Final thought of purchasing real estate in Dubai
If you have extra money and are thinking of investing it in real estate, then investing it in Dubai is one of the best decisions you can make. Dubai is going through huge developments, with more and more people visiting the city each year. As the world is slowly moving away from oil, Dubai started to develop and invest in different fields in order to keep up with the world and be able to sustain itself as the demand for oil falls. Because of this, now might be the best time to buy real estate in the UAE, as real estate sales are up by 46% compared to 2021.
Another perk of investing in Dubai real estate is that you can get a long-stay visa. If you were to invest around 1 million AED, which is around $250,000, you can get a 3-year visa. While if you invest 2 million AED ($500,000), you are eligible to receive a 5 to 10-year visa. So if you are looking to invest in real estate, we would suggest that you take a look at real estate agencies that offer good services, and at least consider this investment possibility.
Frequently asked questions about buying real estate in Dubai
When purchasing a property in Dubai the main document that you will need to have is a valid passport. If you have this and cash in the bank, you are pretty much set, and for every other document that you will need, you can get it easily with the help of a real estate agency.
When making a deposit to the seller, you will need to deposit 25% upfront. This means that if you are purchasing a property worth 1 million AED, you will need to deposit at least 250,000 AED in order to purchase the property. If you are a Dubai local, this goes down to 20%.