Legal Framework of Buying a Townhouse in Dubai: A Guide for Foreign Investors

Do you wish to invest in a property in Dubai? You can now capitalise on the lucrative real estate sector even if you are an expat. In 2002, the Government of Dubai passed a law that would allow foreigners or expats to buy properties in areas designated as freehold, and they can enjoy freehold ownership rights with no restrictions or leasehold rights for up to 99 years. Even as a non-resident investor, you have a complete right to sell, rent, or transfer the property. Freehold areas are typically characterised by high-end architecture, panoramic vistas, and offer a distinct residential environment.

Where the legal aspect is concerned, the Dubai Land Department (DLD) is the regulatory authority overseeing property transactions. Article 3 of Regulation No. 3 of 2006 Determining Areas for Ownership by Non-Nationals of Real Property in the Emirate of Dubai, designates freehold areas, and the title deeds are issued by the Land Department in Dubai. The legal framework of buying and selling property in Dubai makes every effort to safeguard the interests of all those involved. If you are planning to buy a townhouse in Dubai, make sure the property is free of any disputed or pending dues.

Recent updates have made it easier for non-residents to obtain long-term residency through real estate investment. Read on to know about the process of purchasing a townhouse in Dubai as a non-resident.

• Thorough Research: Get yourself thoroughly acquainted with the process of buying property in Dubai. Know that the DLD is the governing body for all real estate matters, and it is important you are aware of the regulations and rules. You must complete all legalities through DLD and validate property ownership through them. Familiarise yourself with the location and neighbourhood and get clarity on the amenities. 
• Finances: When you are ready with your budget, approach the bank for mortgage that suits you. Banks in Dubai vary in the mortgage they offer to expats. Be aware of all expenses, including transfer fees, real estate agent fees etc. 
• Legal Guidance: Professional guidance will go a long way in ensuring a hassle-free purchase. Your real estate lawyer ensures adherence to legal requirements. Legal nuances of buying a townhouse in Dubai can sometimes seem overwhelming, and a real estate lawyer will be the right one to guide you through them. As lawyer’s assistance will be beneficial in reviewing documentation and negotiation. 
• Registration: Once you purchase a property, you must register it. The DLD will then scrutinise your documents. After this, you will have to pay registration fees, which include transfer fees and service charges. Once all paperwork is completed, you will receive a new title deed with your ownership details.

Foreign investors are assured of complete transparency and are protected by laws and ownership rights by the Dubai government. The DLD is the ultimate authority for the regulation of real estate dealings. This enables a transparency throughout the process of buying property. As a foreign investor, you will enjoy the same ownership rights as UAE nationals. Additionally, the legal framework protects property rights for investors. The government also has stringent measures in place to deal with fraud, thus promoting your confidence when investing in Dubai real estate. 

Now is the time to make a smart investment in Meraas’ real estate properties in prime freehold areas in Dubai and take advantage of great opportunities to secure your financial growth.