Buying a Property in Dubai as a Foreigner: Everything You Need to Know

Dubai’s dynamic real estate market continues to attract international investors, drawn by its tax-friendly environment, high rental yields, world-class infrastructure, and luxurious lifestyle.

Dubai was the first emirate to allow foreign nationals to buy property on a leasehold basis in 2001 and passed a law in 2002 granting them the right to own property on a freehold basis in designated areas, which offer full ownership rights to non-UAE nationals, including the ability to sell or rent the property.

If you are a foreigner considering buying property in Dubai, understanding the legal, financial, and practical aspects is essential to make the right decision. Here's a comprehensive guide to help you navigate the process with confidence.

Types of Property Ownership

There are two main types of ownership available to foreign buyers:

Freehold Ownership

Freehold ownership grants buyers complete ownership of the property and the land it’s built on, with no time limit. Owners can sell, rent, or occupy the property as they wish.

Leasehold Ownership

Leasehold ownership typically allows a property to be leased for up to 99 years. The buyer does not own the land but has rights to the unit for the duration of the lease. After the lease expires, ownership reverts to the original owner.

Legal Requirements and Documentation

Buying property in Dubai as a foreigner is a straightforward process, but you will need to ensure that your documents are in order. Requirements typically include:

• A valid passport (no need for UAE residency)
• A signed Memorandum of Understanding (MoU) between buyer and seller
• Payment of Dubai Land Department (DLD) fees and registration fees

Financing Options for Foreign Buyers

Foreigners can apply for a mortgage through UAE-based banks, but terms may vary depending on the buyer’s nationality and overall financial health. While specific terms may vary depending on the bank, here are some key points to consider before applying for a mortgage in Dubai:

• Down payment: Generally, 20–25% for expats
• Loan tenure: Up to 25 years
• Interest rates: Fixed or variable, usually starting from around 3–5%

Off-Plan vs. Ready Property

Foreign buyers can choose between off-plan properties (still under construction) and ready properties. Each has its pros and cons:

Off-Plan

Buying off-plan property in Dubai offers several advantages, including a lower entry price compared to ready properties, flexible payment plans that ease financial pressure during the construction period, and the potential for capital appreciation by the time the project is completed. However, it also comes with certain risks, such as the possibility of delays.

Ready Property

Buying a ready property in Dubai allows for immediate occupancy and the potential to generate rental income right away. It also offers greater certainty, as buyers can inspect the unit and often invest in well-established communities with existing infrastructure.

On the other hand, ready properties typically come with a higher upfront cost, and buyers must either make full payment or secure a mortgage at the time of purchase.

Residency Visa Through Property Investment

Dubai offers long-term residency visas to property investors under certain conditions.

• A 2-year visa may be granted for property ownership valued at AED 750,000 or more at the time of purchase
• A 10-year Golden Visa may be granted for real estate investments of AED 2 million and above

Both options are renewable and allow for family sponsorship.

Find the Ideal Property in Dubai with Meraas

We offer foreign buyers the opportunity to invest in properties in prime freehold areas in Dubai, including JBR, City Walk, and Dubailand. Our portfolio features waterfront and urban developments, which combine long-term value with lifestyle appeal.

If you are considering buying a property in Dubai, contact Meraas team today to learn more about our latest real estate projects and developments and find the perfect property that meets your requirements.