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How foreigners can buy property in Dubai; here's what you need to know

Foreigners can own freehold land and property within designated areas

Published: Sun 21 Jul 2024, 8:00 AM

Updated: Sat 3 Aug 2024, 6:09 PM

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Foreigners who do not live in the UAE, as well as expatriate residents, can buy property in the country, according to the UAE's government portal.

According to Law No. 7 of 2006 on Real Estate Registration in the Emirate of Dubai, non-UAE nationals can own freehold land and property within areas designated for foreign ownership by the Ruler of Dubai.

According to Dubai Land Department (DLD), freehold ownership "is absolute and unrestricted by time and extends to the land and all buildings thereon. Foreign nationals are also permitted to acquire all types of real estate interests within the Designated Areas, including musataha, usufruct, and long-term leases up to 99 years."

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Musataha refers to a real estate right, where the owner can invest in, and construct on land belonging to another party, for not more than a period of 50 years. After this duration, the ownership of the land will be transferred back to the original owner.

Usufructing means that the individual can use and benefit from the property that belongs to another owner for not more than 99 years, after which ownership will be transferred back to the original owner.

What are the designated areas for foreigners?

According to a list issued by the Dubai Land Department (DLD), these are some of the areas where foreigners can own freehold property in the emirate:

  • The Palm Jumeirah
  • The World Islands
  • Downtown Dubai
  • Old Town
  • Burj Khalifa
  • Business Bay
  • Dubai Marina
  • Emirates Hills
  • Jumeirah Lakes Towers (JLT)
  • Jumeirah Beach Residence (JBR)
  • Discovery Gardens
  • Arabian Ranches
  • Mirdif (specified plots)
  • Dubai Investment Park (DIP)
  • Falcon City
  • Dubai Sports City
  • Dubai Motor City
  • International City
  • Jumeirah Islands & Jumeirah Village

To know about other areas where foreigners can purchase land or property, you must contact the DLD.

Steps before buying a property

According to DLD, it is important to first conduct legal due diligence, and then draft and sign a sale and purchase agreement.

The sale contract between the seller and the buyer is available for download in the DLD website. You can access it by visiting the website, and clicking on the 'Downloads' tab at the top.

To check the list of properties available, the user can go to the DLD website, and click on real estate data under 'open data'. Then, choose from the given fields to find properties suited to your needs.

For foreign nationals, click on freehold, and you can then check the property type (residential, commercial etc), status of sale (ready, off-sale), area and other parameters.

Legal due diligence

The buyer should confirm that the property is indeed owned by the seller or developer, and that it is free of mortgages, liens or any other charges.

This can be done by the buyer and seller visiting a DLD office, or through DLD's online service which enables you to inquire if an individual is a property owner by following these steps:

  1. Click on all services under the services tab in the DLD website
  2. Select information services, and then click on 'inquiry about a person whether it is a real estate owner'
  3. Click on access this service. You can then search by name, Emirates ID, passport number, or company

Under information services, you can also click on 'inquiry about a real estate project status' and enter the project name to follow-up on its status.

Register the sale

First, you must sign a sale and purchase contract, issued by the Dubai Land Department. Then, to register the sale, you must visit a Real Estate Registration Trustees service centre, or through the Dubai REST smart application, with the required documents and fees.

Steps to register

Through service centres

  • Submit the required documents through the digital safe or treasury
  • Transaction details will be entered and audited in the system by an employee
  • After payment of the fees, the buyer will receive the necessary documents issued by email

Through the Dubai REST app

  • After selecting the property purchase service, enter the booking reference number issued by the seller
  • Check your details, pay the fees (either full amount or booking amount) through the Noqodi payment page, and you will be able to download the certificate

Required documents

  • No-objection e-certificate (E.NOC) from the developer in the freehold areas (via Dubai REST App)
  • Emirates ID of the seller and the purchaser (for identification only, no copy shall be submitted) or a valid passport for non-resident foreigners
  • A legal power of attorney in case of a representative
  • If it is a company, which is unregistered, then the entity must apply for registration

Fees

  • Service partners fee - Dh2,000 plus VAT if the value of the sale is less than Dh500,000
  • Service partners fee - Dh4,000 plus VAT if the value of the sale is equal to or more than Dh500,000
  • Real estate unit or villa - Dh250
  • Land plot map for lands unified with Dubai Municipality - Dh225
  • Land plot map for lands outside authority of Dubai Municipality - Dh100
  • Knowledge fee for each drawing - Dh10
  • Innovation fee for each drawing - Dh10
  • Seller fee - 2 per cent of sale value
  • Purchaser fee - 2 per cent of sale value

Documents issued

The documents required by the buyer will be issued, which may include:

  • e-Certificate of Title
  • Title deed
  • Title deed usufruct right e-certificate
  • Provisional sale contract (statement certificate)
  • Provisional registration contract
  • Fee balances
  • Map

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