Dubai is one of a kind, and that’s a fact. Do you know what has made Dubai one of the world’s most modern and greatest cities? It’s the business and FDI (Foreign Direct Investment).
More than 70% of Dubai’s and UAE’s population comprises expatriates from over 150 nations worldwide.
Low tax rates, no income or capital gains taxes, and many business opportunities make Dubai appealing to foreign investors.
However, one question gets many of them thinking: Can foreigners buy, sell, and rent property in Dubai? If yes, then how? Let’s dive into the details of its answer.
Can Foreigners Buy, Sell, And Rent Property In Dubai? If Yes, Then How?
First, the straight answer to this question is YES. Foreigners can buy, sell, and rent property in Dubai by all legal means.
In just two decades, Dubai has seen exceptional growth in all sectors, and since the city opened its gates for foreign investment, the whole dynamic of the real estate sector has changed for the better, and it’s still growing.
Due to the influx of FDI, the rents, rental yields, and ROI is extremely good in Dubai, and it’s always a good financial decision to invest in Dubai’s real estate industry.
It’s a simple formula if you look at it. Dubai is a metropolitan city and a tourism hub. Around 15 million+ tourists visit Dubai annually; of course, the numbers went down during the pandemic, but Dubai coped up rapidly.
The reason for telling you all this is that there are masses, and there is money. The Dubai government made important decisions to increase the city’s tourism.
So, keeping all these factors in mind, foreigners CAN buy, sell, and rent in Dubai in the freehold areas of the city (designated by the Dubai government).
Read | Can Foreigners Buy Property
What Is The Eligibility Criteria For Buying Property In Dubai?
As mentioned above, it is quite easy to be eligible to become a property owner in Dubai. There are some documents you must have before doing so.
First, you must have your official passport to verify your identity if you are a non-resident or expatriate in the UAE (Dubai).
Sometimes, they ask you to show your source of income to get clarity and verification. It is a way to better your position during negotiations, and you’re all set.
Yes, this is all you need to get started for property acquisition. However, the sellers sometimes ask more questions and ask for more documents to build trust.
Which Areas In Dubai Are The Best To Invest In? And Why?
You need all the information about something, especially when your money is involved. Although almost all of Dubai’s real estate sector is profitable, you want the best.
Among all the freehold areas in Dubai, some offer the best lifestyle, better ROI, rental yields, healthcare, and education.
Below is the list of some freehold areas which stand out among many in terms of ROI.
1: Dubai Marina:
The tall skyscrapers that come to your mind when you think or hear about Dubai are mostly located in Dubai Marina and Downtown Dubai.
Most of the luxurious brands, amazing resorts, restaurants, cafes, and many other avenues are in Dubai Marina, and for the same reason, the area is densely populated.
Furthermore, this area sees a huge influx of tourists every year, and by focusing on the more-people-more-money rule, Dubai Marina is among the best freehold areas to invest in.
You can expect the annual renting cost in this area to be around AED 7 million or USD 1.9 million, and buying cost can be over AED 12 million or USD 3.2 million.
2: Downtown Dubai:
Downtown Dubai is home to one of the tallest and most famous buildings worldwide, Burj Khalifa, along with several other high and lavish skyscrapers.
Besides Burj Khalifa, you’ll also find the biggest mall in the world, the Dubai Mall, in this area.
In simpler words, you can find everything you have imagined about Dubai’s lifestyle, nightlife, tourist destinations, and entertainment areas.
Due to the influx of tourists and high density, Downtown Dubai offers great ROI, rental yields, and quality of life.
One can say that the real estate prices in this area are too high, but once you get a taste of what Downtown Dubai offers, the prices might not sound too high.
Moreover, you can expect the annual renting cost to be around AED 17.5 million or USD 4.76 million, and the buying cost in this area is over AED 20 million or USD 5.44 million.
Read | Dubai Real Estate Market Forecasting
3: Arabian Ranches:
Arabian Ranches is among Dubai’s most peaceful gated villa communities, and it’s famous for being the hub of the super-rich.
You’ll find tons of lavish villas and apartments in this area, and if you don’t already know this, amazing villas and apartments in Dubai are in the highest demand in the city’s real estate sector.
Everyone has preferences. After making enough money, many people live in suburban areas to avoid unnecessary distractions.
Investing in the Arabian Ranches yields great ROI, and it’s also a great place to live and call home.
The expected annual renting cost varies from property to property, villa to villa, and apartment to apartment.
You can expect a rental cost of around AED 125,000 or USD 34,000+ per year, and at the same time, the rental cost can be AED 400,000 or USD 110,000 per year.
4: Palm Jumeirah:
Who doesn’t know about the famous Palm Jumeirah island? Any trip to Dubai without visiting Palm Jumeirah feels incomplete.
Indeed, Palm Jumeirah is a marvel of architecture and engineering and is among the top investment hubs in Dubai’s real estate industry.
Fun Fact: Have you ever wondered why Palm Jumeirah is shaped like a palm tree? Because the government wanted to offer as many sea-facing houses, apartments, and villas as possible. They couldn’t have achieved this with a simple round archipelago.
This move was successful, as anyone who invests in Palm Jumeirah’s real estate can get the same “window seat vibe” as everyone else.
The annual rental cost in this area can be AED 250,000+ or USD 68,000+, and the buying cost is around AED 15 million or USD 4 million+.
5: Creek Harbor:
Dubai Creek Harbor has been the center of attention for the Dubai government for quite some time, and they are doing everything to provide all necessities at walking distance for its residents.
It is a modernized residential area of Dubai with many schools, colleges, universities, hospitals, malls, and all necessities and luxuries a person can ask for.
There is high demand in Creek Harbor’s real estate sector, and it is expected to increase even more in the coming years. You’ll be doing yourself a big favor by investing in this area.
The average annual rental cost in Dubai Creek Harbor is around AED 400,000+ or USD 110,000+, and the average buying cost is around AED 1.5 million to 2 million+ or USD 272,000+ to USD 545,000+.
6: Dubai Hills:
Sometimes, a person just wants to escape the fast-paced city life and live somewhere peaceful and quiet. I mean, somewhere hilly.
That’s exactly what Dubai Hills offer its residents and investors. Dubai Hills have amazing villas and apartments with breathtaking views and natural surroundings.
Dubai Hills provide excellent return-on-investments and rental yields. In short, it’s an ideal place for both investment and living.
The average yearly rental cost is around AED 800,000+ or USD 215,000+, and the average buying cost is around AED 10 million+ to USD 2.72 million+.
FAQs:
Can An Indian Buy Property In Dubai?
Yes, an Indian, Canadian, American, British, or any other foreigner can buy, sell, and rent property in Dubai’s freehold areas (special areas designated by the government).
Where In Dubai Is The Rent Most Reasonable?
If you are on a budget and looking to rent a property at the lowest rental cost, you should go for International City Dubai, as you can expect to pay around AED 25,000 to 35,000.
What Does It Mean By “Freehold Property” In Dubai?
Freehold properties in Dubai are special areas designated by the government. Buying a freehold property means completely and solely owning the whole estate (the property + the land).
UAE residents and non-residents can buy, sell, and rent freehold properties in Dubai. After buying the property, the buyer can register as that real estate’s legal owner.
Final Words:
At the end of the article, let’s summarize the whole thing for you to understand better.
Can foreigners buy, sell, and rent in Dubai in 2023? Yes. Expatriates and foreigners can buy, sell, and rent freehold properties in Dubai.
What are the eligibility criteria for buying property in Dubai? You must have your passport to verify your identity, and sometimes the seller may ask you to show some additional documents.
Get the best advice from RAS Properties related to your real estate queries. Thanks for reading.
Read | Is It Worth Buying A Property In Dubai For Living Purposes?
