It is no news that the UAE has the most transparent and regulated property market in the Middle East. Moreover, you have to be conversant with the rules in order to play the “game” successfully, especially as a foreigner. Once upon a time, real estate ownership laws in the Emirates for foreigners were strict. Fast-forward to 2020: things are way different now! In this article, you will learn all you need to know about real estate ownership in the Emirates.

Can Foreigners Own Properties in the UAE?

Definitely! You don’t have to be a citizen of the UAE to be qualified to purchase real estate in the nation. Although the rules are not the same for citizens and foreigners; the law does not restrict non-nationals. Moreover, things were different in the past. Dubai was the first Emirate to change laws concerning foreign ownership of properties. Later on, other emirates, including Ras Al Khaimah, Ajman, and Sharjah followed their example. Hence, there is no cause for alarm if you want to buy real estate in the UAE as a foreigner.

Do You Have to Reside in the UAE to Own Real Estate?

Residency is not an issue when it comes to purchasing properties in the UAE. In other words, you don’t have to live in the country before you are eligible to acquire real estate in the UAE. Real Estate laws in the UAE only distinguish nationals from foreigners; you remain eligible regardless of residency. Hence, you should be more concerned about factors rather than living in the nation. Furthermore, there is no age limit as regard owning real estate in the Emirate.

Freehold Versus Leasehold

Freehold and Leasehold are the two categories available for expatriates who want to invest in real estate in the UAE. The leasehold arrangement gives you ownership of the apartment for less than 99 years. However, this option does not give you the right of ownership over the land on which the house is built. Meanwhile, the freehold arrangement grants you ownership of both the house and the land on which it is built. According to the new amendment laws, expats can purchase freehold property in the capital city of UAE. Investment zones such as Yas Island, Saadiyat Island, Masdar City, and Al Raha Beach holds the top spot for freehold purchase in the Emirate.  

What is the System of Purchasing Real Estate in the Country’s Capital?

According to Law No. 19 of 2005 concerning Real Estate in Abu Dhabi, expatriates can own properties in the capital city through the following four systems: Ownership: This arrangement allows expats to own residential units for 99 years. During this period, they can decide to sell the apartment again but not the land. Musataha: This option grants ownership deeds of residential units for 50 years to expats. However, this arrangement is renewable for a similar period. This contract entitles the owner to use, construct, or reconstruct the property to taste within its timeframe. Usufruct: Usufruct grants expatriate the ownership of residential units for 99 years. However, he or she does not have the right to change the residential unit during this period. Long-term lease: This arrangement allows expats to use residential units for an initial period of not less than 25 years.

How Long Does It Take To Secure A Deal?

The process and time it takes to procure property in the UAE are neither stressful nor frustrating. On average, it takes 30 days to sign the Agreement for Sale. The procedure begins with the agreement of terms between the seller and the buyer. Then, a Memorandum of Understanding (MOU) will be signed with an initial deposit (often 10%). The developer will issue a NOC before both parties go to the office of the Dubai Land Department for official ownership transfer. Once you are done with payment formalities, a new title deed will be issued in the buyer’s name.

Does Real Estate Ownership Qualify You For UAE Long-Term Residency?

Interestingly, one of the criteria for long-term residency in the Emirate is real estate ownership. However, you will have to purchase properties worth at least AED 5 million to qualify for a 5-year residency visa. Besides, you must retain the property for up to three years, and the investment must not be in the form of a loan.

What Documents Do You Need to Procure Real Estate in the UAE?

To further prove that the procurement process is super easy, all you need to be eligible is your original passport. Therefore, the laws of the country are in favor of foreign investment. Note that this law only applies to an individual buyer.  

What Is The Price Range of Real Estates in the Emirate?

Finally, we will look at how much you will most likely pay to purchase real estate in the country. Apart from the main fee, the NOC fees often range between AED 500 and AED 5,000. However, it is usually the seller that pays it to the developer. You may be asked to pay it but get it back after acquiring the new title deed. Furthermore, real estate agents get 2% of the purchase price. Transfer fees are usually 4% of the purchase price. It will be paid at the office of the Dubai Land Department. Mortgage registration fees are 0.25% of the registered loan amount, which is also payable to the Dubai Land Department.

Conclusion

The UAE, the real estate market, offers a plethora of opportunities for foreign investors. The laws of the country are favorable to foreign investors. Besides, the procurement process is hassle-free. Investing in real estate also makes foreign investors eligible for residency. Hence, beyond making profits, you can also enjoy other benefits when you invest in real estate in the country. The UAE property market is ready for exploration for foreign investors who have a knack for spotting investment potentials. Be a shrewd investor; put your money in the right place. In Lolia Real Estate we ensure that we exceed clients' expectations by matching their requirements whether it be for investments, for rent or for living, as we have a team of professional agents who can work with you on your requirements and provide the best recommendation. Hence, we provide high-quality services to our clients.