With its strategic location and business-friendly policies, Dubai has become a popular destination for real estate investment, especially among foreign investors. However, there are certain restrictions and conditions for foreigners looking to buy real estate in Dubai. This article provides a comprehensive guide on real estate investment in Dubai for foreigners, including the rules and regulations, process of purchasing property, required documents, investment risks and tips.
Foreigners allowed to purchase properties in designated areas of Dubai
According to Dubai laws, non-UAE nationals can purchase freehold properties in certain designated areas of Dubai, known as ‘free zones’. These free zones have been specially created by the government to attract foreign investment. Some popular free zones for real estate are Dubai International Financial Centre (DIFC), Dubai Multi Commodities Centre (DMCC), Dubai Internet City (DIC), Dubai Media City (DMC), Dubai Studio City, Dubai Knowledge Park and Dubai Healthcare City. Foreigners cannot purchase freehold property outside of these designated areas in Dubai.
3-year renewable residency visa available with Dh750,000 property purchase
An additional benefit for foreigners purchasing property in Dubai worth at least Dh750,000 is that they can avail a renewable 3-year residency visa. This allows them to easily live, work and conduct business in Dubai. With a property investment of Dh5 million, investors can get 5-year multiple entry visa. The residency visa also provides visa on arrival access to visitors.
Due diligence required on developer reputation and project delays before off-plan purchases
When considering off-plan property purchases in Dubai, especially incomplete projects, it is essential for investors to conduct thorough due diligence. Research the reputation and track record of the developer, their financial strength, and risk of project delays or non-completion. Look at their portfolio of past projects and client reviews. Drive to project site to view construction progress. Understand cancellation penalties and process for getting refunds in case of non-delivery of project.
Timely payment of installments critical for avoiding contract cancellation
For properties purchased off-plan, it is crucial for investors to pay installments in a timely manner as per the payment schedule. If installments are missed repeatedly, the developer can legally cancel the sale purchase agreement and resell the property to someone else, with little or no refunds. Therefore, investors must plan finances diligently to avoid missed payments during construction period.
Video notarization allows faster overseas buyer authorization
When a property purchase completes near the final handover date, overseas investors may need to provide legal authorization for representative to complete the developer formalities in Dubai. Traditionally this required cumbersome process of embassy attestation of power of attorney. Now cross-border video notarization services provide a faster authorization option within 2-3 days.
Dubai provides favorable conditions for foreigners to invest in real estate in designated areas. Conduct thorough due diligence before purchases, make timely payments, use faster overseas buyer authorization options. With prudent selection Dubai real estate can be a profitable long term investment.