Buying Property in Dubai: Everything You Need to Know

Dubai has become a real estate haven for foreign investors and nationals alike. Whether you’re in the market to invest or are looking for a live-in option Dubai is amply capable of accommodating you. But buying property in Dubai comes with its requirements. 

You have to adhere to the legal requirements and follow the right process to acquire what you really require. With so much potential, competition, and potential in Dubai’s real estate, owning a property in Dubai can be tricky. This article provides an emphatic guide with requirements and information that can give you an idea about what is required to get a property in Dubai. 

Can you Buy Property in Dubai?

When it comes to who is eligible to buy property in Dubai, there are two major categories to consider: foreigners and citizens. Dubai offers its properties to both foreigners and citizens. There is plenty for both. For UAE nationals, owning property in Dubai is relatively easy and straightforward. 

The UAE nationals can buy any property they need in full ownership. UAE also allows citizens of some other Middle Eastern states, such as Bahrain, Kuwait, Qatar, etc, to hold properties as full-time owners in Dubai.

For foreigners, the process is not this straightforward. The UAE does allow foreign nationals to buy specifically classified properties. The UAE has segregation defined in terms of the properties that foreigners can buy. These are freehold properties that are available for any foreign investor, expat, or non-resident foreigner. 

Classification of Property Ownership in Dubai

Property ownership in Dubai is usually classified into two main categories. 

Freehold ownership

Freehold ownership in Dubai refers to full possession of a property, and this ownership is not time-bound. Dubai has these properties all over, including Downtown Dubai, Jumeirah Lake Tower, Dubai Marina, and more.   

Leasehold Ownership

Leasehold Ownership refers to temporary ownership for a defined amount of time, usually between 99 and 999 years. These kinds of properties are usually situated in specific locations in Dubai, such as Dubai Marina, Discovery Gardens, and more.

Documents Required for Buying a Property in Dubai

Owning a property in Dubai requires specific documentation mentioned below:

• Valid passport
• Proof of Residence visa
• Sale and purchase agreement
• No Objection Certificate (NOC) regarding leases or properties up for reselling.
• Power of Attorney – in case the owner of a property is unavailable.

Step-wise Guide to Buying a Property in Dubai

Following is a step-by-step guide on owning a property in Dubai:

Formulate a Contract

The property buying process starts with designing a buyer and seller contract. Once you have found the property best fit for you, it is time to discuss terms with the seller. Whether you’re looking to buy the property outright or apply for a mortgage, it is essential that you have a carefully drafted agreement with clearly defined terms and conditions.  

This step does not necessarily require the involvement of a real estate agent or a lawyer. To avoid future ambiguities, it is essential to clearly define pricing, payment methods and scheduling, along with other terms.

Execute the Agreement

Now it is time to execute the formulated agreement. You can easily download the document from the Dubai Land Department website. Then modify the contract according to your terms, get it signed. It is important to have a witness along with the seller to cater to future misunderstandings. In addition you have to pay a 10 percent security deposit to Registration Trustees which is refundable upon the completion of the process.

Get the NOC

Now in the buying process, you should proceed towards obtaining the No Objection Certificate from the developer. Finalise the ownership transfer with the developer. The developer will then issue an NOC if there is no outstanding bills.

Transfer Ownership at the Registrar’s Office

The last step in the process of buying a property in Dubai is transferring ownership of the property. This is done at the registrar’s office. Be sure to have all the necessary documents prepared. 

You can either be present or send an authorised representative. Documents to be submitted here include, along with required documents, a payable cheque, original identification documents, NOC and a signed form OF contract. Now you cross-check the data, pay the dues, and receive a receipt of payment, it is advisable to submit the documents early for a single-day transfer. A new title deed will be issued after receiving the approval email with you as a new owner.

Investment Security Through Residency

Buying property in Dubai can help score residency visa options for any investor spanning 2 to 10 years, conditional on the amount of investment. Having Dubai’s residency visas can give you access to plenty of benefits, including opening up various business and investment opportunities and mobility. 

Financing and Mortgage Options

Instead of buying a property in Dubai, you can also explore financing and mortgage options. It is important that you have an insight into the mortgage process and Dubai’s lending landscape. The banks offer highly competitive interest rates and flexible payment schedules personalised to your requirements. It is important that you keep in view the minimum thresholds set by banks for down payments. It is generally set at 25 per cent, with some banks offering loans at an even lower down payment.

Managing Absences During Deals

In the absence of the owner or the particular buyer, buying property in Dubai is still possible by authorizing a general power of attorney with the responsibility of dealing on your behalf, giving them authority to oversee the proceedings. 

At Zingo Smart Stay we can help you navigate through these processes with ease. Reach out for a seamless property management experience.

Conclusion

Dubai’s real estate market is far from being saturated. It presents expansive opportunities to all whether you’re a foreigner looking to invest or live, or are a national Dubai surely has something in store. Buying property in Dubai can be a bit tricky if you’re new to the market. We hope this blog has helped with any confusion you might have had regarding the buying process. Owning a property in Dubai is not just a dream anymore. Dubai is the land of opportunities when it comes to real estate. 

Frequently Asked Questions