Dubai has definitely emerged as the global hub for real estate investment. People from across the globe are investing in the attractive property market. The lucrative opportunities and booming economy are proof that Dubai is pretty favourable for those looking to make profitable property investments. However, there are a few real estate laws which foreign investors should be aware of. We’ve discussed them below.
Dubai’s Real Estate Regulations
• Foreign Ownership Laws
In Dubai, foreign nationals are allowed to buy/acquire property in designated freehold areas. They gain complete ownership of both the property and the land it occupies. They have complete freedom to buy, sell, lease and transfer their property without facing any limitations.
• Taxation Benefits
One of the primary reasons foreign nationals invest in Dubai’s real estate market is because of the absence of property and capital gains tax. The tax-free environment allows them to maximise their returns.
• Registration with Dubai Land Department (DLD)
Dubai’s entire real estate market is regulated by a government body. The DLD is responsible for registering and documenting every real estate transaction in Dubai. A foreign national is required to pay a registration fee of 4% of the property’s value.
• Property Investor Visa
When you buy property in Dubai, you qualify for a residency visa. For instance, if you purchase a property worth AED 1 million or more, you qualify for a long-term residency visa. However, the property should be in your name and must only be used for residential purposes.
• Mortgage Regulations
Foreign investors also have the option to finance their property through mortgages. However, the down payments from banks are usually higher for non-residents than UAE nationals. The interest rates are either fixed or variable.
Conclusion
Before investing in one of the most attractive real estate markets, it’s better to understand the laws and regulations so that you can maximise your investment and earn better yields.
