Who can buy property in the United Arab Emirates?

Foreigners have the opportunity to purchase properties in the United Arab Emirates, but specific conditions must be met. United Arab Emirates nationals are allowed to acquire real estate with full ownership rights across the UAE. Similar provisions also extend to nationals of certain Middle Eastern countries, including Saudi Arabia, Oman, Bahrain, Kuwait, and Qatar.

Abu Dhabi

In Abu Dhabi, Law No. 19 of 2005, which regulates the real estate sector, allows expatriates to own floors and apartments under four primary systems:

• Ownership: Expatriates receive ownership deeds for residential units for a 99-year period, enabling full disposal of purchased apartments and villas (excluding land).
• Musataha: Expatriates can own residential units for 50 years, renewable for a similar period, granting the right to use, construct, or alter the property.
• Usufruct: Expatriates can own residential units for 99 years, granting them the right to use the property and its facilities without alteration.
• Long-term lease: Initially granted for a minimum of 25 years.

Designated areas in Abu Dhabi where ownership is allowed include Yas Island, Saadiyat, Reem, Mariya, Lulu, Al Raha Beach, Sayh Al Sedairah, Al Reef, and Masdar City.

Dubai

In Dubai, foreign ownership is permitted in freehold areas, enabling foreigners, including expatriate residents, to acquire freehold, usufruct, or leasehold rights for up to 99 years. Regulation No. 3 of 2006 determines the specific land plots designated as freehold properties.

Title deeds are issued by the Land Department in Dubai, with no age limit for property ownership.

Sharjah

In Sharjah, Executive Council Resolution No. 26 of 2014 dictates that foreign nationals and companies owned by them in the UAE do not have ownership rights but may hold usufruct rights for up to 100 years after registering with the Sharjah Real Estate Registration Department. These rights are granted within areas specified by the Sharjah Government, subject to special approval from the Ruler of Sharjah.

Do the research

Investing in real estate in the United Arab Emirates (UAE) offers several compelling reasons. First and foremost, the UAE has established itself as a global hub for business, tourism, and luxury living, attracting a diverse population of residents and visitors. The country's strategic location between Europe, Asia, and Africa, coupled with its modern infrastructure and business-friendly environment, makes it an attractive destination for investors seeking high returns. The government's proactive approach to economic diversification and sustainable development ensures continued growth and stability in the real estate market. Moreover, the UAE offers a wide range of real estate options to suit different investment preferences, from luxurious villas and apartments in cosmopolitan cities like Dubai and Abu Dhabi to more affordable housing options in emerging markets like Sharjah and Ajman. Whether you're interested in residential, commercial, or hospitality properties, the UAE's dynamic real estate market offers ample opportunities for investors to diversify their portfolios and generate long-term wealth. Finally, the UAE's tax-friendly environment, with no income or capital gains taxes, offers significant financial advantages for investors looking to maximize their returns. Whether you're buying property for rental income, capital appreciation, or personal use, investing in UAE real estate can be a lucrative and rewarding endeavor with the potential for strong returns and wealth preservation over the long term.

Below are some sought-after destinations for real estate investment:

• Dubai - Dubai is arguably the most popular real estate destination in the UAE, known for its iconic skyline, luxurious properties, and dynamic lifestyle. Areas like Palm Jumeirah, Downtown Dubai, Dubai Marina, and Emirates Hills are particularly sought after for their upscale living options and investment opportunities.
• Abu Dhabi - As the capital city of the UAE, Abu Dhabi boasts a thriving real estate market with upscale developments like Saadiyat Island, Al Reem Island, and Yas Island. These areas offer luxurious residential options, waterfront living, and proximity to major landmarks and amenities.
• Sharjah - Sharjah is increasingly becoming a popular real estate destination, offering more affordable housing options compared to Dubai and Abu Dhabi. Areas like Al Nahda, Al Taawun, and Al Khan are known for their residential communities and family-friendly amenities.
• Ajman - Ajman is known for its affordability and relaxed lifestyle, making it an attractive option for both residents and investors. Areas like Ajman Downtown, Ajman Corniche, and Al Rashidiya offer a mix of residential and commercial properties at competitive prices.
• Ras Al Khaimah - Ras Al Khaimah is known for its natural beauty and serene environment, making it a popular choice for those seeking a tranquil lifestyle. Developments like Al Hamra Village and Mina Al Arab offer waterfront living and leisure amenities.
• Fujairah - Fujairah is another emirate known for its natural beauty and laid-back lifestyle. While it may not be as developed as Dubai or Abu Dhabi, areas like Al Aqah and Dibba Al Fujairah offer opportunities for beachfront living and tourism-related investments.
  

Where to find properties online:

• https://www.propertyfinder.ae/
• https://www.bayut.com/
• https://uae.dubizzle.com/

Financing

Mortgages are accessible in the UAE for both residents and non-residents, with various options available, including fixed-rate mortgages, adjustable-rate mortgages, and Shariah-compliant Islamic mortgages that adhere to Shariah law and abstain from charging interest.

Interest rates for mortgages in the UAE fluctuate based on the mortgage type, the lending institution, and the creditworthiness of the borrower. Typically, fixed-rate mortgages carry higher interest rates compared to adjustable-rate mortgages, while Islamic mortgages may entail higher fees compared to conventional ones.

Maintaining a clean credit history is crucial during the application process, as lenders typically turn down applicants with inadequate or non-existent credit records.

Due Diligence and Sales Contract 

While the UAE lacks a specific law mandating due diligence, it's strongly advised as it provides a comprehensive understanding of the property you're considering purchasing. This involves examining the property's legal status, verifying the absence of outstanding debts or legal complications. Typically overseen by a lawyer or a real estate agent knowledgeable about the UAE market, due diligence can be intricate. It's essential to complete this process before entering into contracts or making any payments.

In the UAE, the real estate sales contract is referred to as the Sales and Purchase Agreement (SPA). This written document delineates the terms and conditions of property transactions between involved parties. Alongside essential details, the agreement may encompass various mutually agreed-upon conditions. As a legally binding document, the SPA holds considerable importance in property transactions and necessitates careful drafting.

Property Buying Costs and Taxes in the United Arab Emirates