With its strategic location and business-friendly environment, the United Arab Emirates (UAE) has become a top destination for foreign investment, especially in real estate. However, there are some key factors foreign investors need to consider when investing in UAE properties. This article will provide an overview of the buying process, investment options, visa programs, and risks for foreign buyers in UAE’s property market.
Foreigners can purchase properties in designated areas in UAE
According to UAE laws, foreign individuals and companies can purchase freehold properties located within designated investment areas in UAE. For example, Article 3 of Law No. 7 of 2006 allows foreigners to acquire all property rights in Dubai’s freehold areas. However, foreign ownership is still restricted in some emirates.
3-10 year residency visas are available for property investors
The UAE government has introduced long-term residence visas linked to property investment to attract foreign buyers. Investing in a property worth at least AED 750,000 makes foreign buyers eligible for a 3-year visa, while a property investment of AED 2 million entitles investors to a 5-year visa.
Ready properties involve simpler purchase processes
For ready properties, buyers can view the completed unit before purchase. The buying process usually follows the standard procedures using the government’s model contract templates. Off-plan purchases of unfinished properties can be riskier but may offer better prices.
Factor in hidden costs like service fees and transfers
Aside from the property price, foreign buyers should account for additional costs like registration fees, service charges, mortgage payments if financing, and money transfers between countries. It’s also essential to use regulated brokers and do due diligence.
The UAE provides opportunities for foreigners to invest in its thriving property market. However, overseas buyers need to follow regulations, use official channels, and be aware of all costs involved. Consulting a local real estate advisor can help navigate the investment process smoothly.