Whether it's the allure of luxury high-rise apartments, vibrant commercial hubs, or prime beachfront villas, Dubai's real estate market offers a wealth of opportunities for global investors and expats seeking to make it their second home or earn an additional income. Coupled with a tax-free regime, high rental yields, and the possibility of residency through investment, buying property in Dubai is an attractive proposition for international buyers.
- Dubai’s real estate market offers competitive returns, with 5.27% rental yields.
- Foreign investors can purchase freehold property in designated areas.
- Through the UAE Golden Visa program, buyers who invest at least AED 1,000,000 can qualify buyers for long-term residency in the country.
- There are no property taxes, capital gains taxes, or income taxes in Dubai, maximizing your return on investment.
Dubai’s Real Estate Market Overview
Dubai’s economy is supported by strong infrastructure, world-class logistics, and a strategic geographic location that connects the East and West. The property market benefits from a steady influx of foreign institutional capital as well as expats and tourists, which comes with a consistent demand for residential and commercial properties.
Its real estate market is known for high capital appreciation in certain districts and, according to recent reports, the overall sales value for properties in the city in September 2024 increased by 18.1%. The price per square foot has also seen a 7.8% increase year-on-year.
In the rental market, apartments saw a 17.1% increase in average rental prices and villas experienced a modest 2.9% rise in rental prices. Commercial rental properties saw the most significant rise, however, with a 19.1% increase in average rental prices.
18,045 property transactions were recorded in September, marking a 32.7% increase compared to 2023. Apartments saw a 35.9% increase compared to the previous year and villas saw a 29.2% increase year-on-year. Plots of land purchases also went up by 12.6%.
Looking ahead, Dubai’s real estate market is set to experience a significant supply increase, with around 41,000 units projected to be developed in 2025 and 42,000 units in 2026.
Benefits of Buying Property in Dubai
Beyond the diverse investment opportunities and high rental yields, the UAE's business-friendly policies, transparent regulations, and minimal bureaucracy create a conducive environment for entrepreneurs and investors who own property in Dubai.
- The UAE does not levy property taxes, income taxes, or capital gains taxes on individuals. Additionally, the UAE's stable and robust banking system ensures the security and growth of your savings. This means investors can maximize their returns.
- Purchasing property qualifies investors for the UAE’s Golden Visa, a long-term residency program that allows foreigners to live, work, and study in the country. Your long-term, renewable residence visa (valid for either 2, 5 or 10 years) offers the chance to call Dubai your home quickly.
- Residents of Dubai benefit from access to Dubai’s premium lifestyle offerings, including luxury shopping, dining, entertainment, and healthcare. The UAE is also home to some of the best educational institutions and hospitals.
- Not to mention, Dubai consistently ranks as one of the safest cities globally, with very low crime rates and a stable political environment, making it a secure place to live and own assets.
Partnering with experts like Mirabello Consultancy, which has years of experience in Dubai’s real estate market and strong property network across the region, ensures you make informed decisions. They offer personalized advice on selecting prime properties, managing investments, and understanding legal frameworks so you can benefit from your investment.
Schedule your free consultation today and secure your future!
Legal Framework for Foreign Buyers
The Real Estate Regulatory Agency (RERA) operates under the auspices of the Dubai Land Department (DLD) and serves as the primary regulatory body for real estate in Dubai. Their roles include licensing real estate activities, certifying property developments, and ensuring compliance with the emirate’s property laws.
These laws allow foreigners to purchase property in Dubai under two main ownership structures: freehold and leasehold.
The freehold system, which allows you full ownership over property and land (with the right to sell, lease, or rent at will) is available to expatriates only in areas designated by the government, such as Downtown, Dubai Marina, and Palm Jumeirah.
Leasehold ownership, on the other hand, gives buyers the right to use the property for a fixed term, typically up to 99 years. At the end of the lease term, ownership reverts to the owner – unless an extension is agreed upon. These properties are more common in commercial real estate and certain residential areas.
Mirabello Consultancy can assist in managing the legal aspects of your property purchase, from initial due diligence to final registration with the DLD including title deed.
Off-Plan Property Sales
Purchasing property directly from developers before the construction phase is completed has become a common practice for investors in Dubai. You can buy property at much lower prices, providing a higher potential for returns. Developers in Dubai also typically offer flexible payment plans for off-plan properties, which can ease the financial burden.
However, buyers should still understand that delays can occur in the project’s development due to unforeseen construction challenges, and other circumstances outside anyone’s control. Off-plan properties in Dubai are also subject to market volatility. The real estate market can fluctuate due to economic factors, changes in supply and demand, and geopolitical events. This can impact the anticipated return on your investment.
The Dubai government mandates using escrow accounts for all off-plan property transactions to protect investors’ money.
Step-by-Step Guide to Buying Property in Dubai
Once you are familiar with the real estate market trends and legal framework that will impact your investment decisions, you can start the process of buying property in the UAE.
- Hire a trusted real estate agent to navigate the complexities of Dubai's market. A skilled agent will guide you through property options, pricing trends, and negotiations.
- View properties through virtual tours or visit Dubai to inspect properties in person. Assess factors like location, future development potential, and proximity to amenities
- Once you have found the right property, work with your agent to negotiate the price and make an offer.
- Ensure the property has a clear title deed and is free from legal disputes.
- Draft the sales and purchase agreement and pay a down payment, typically 10% of the property value.
- Transfer of ownership by obtaining a No Objection Certificate (NOC) from the developer and registering the property with the DLD.
- Pay the remaining balance and take possession of the property.
Note that these steps can be done all fully remotely with zero risks, due to the innovative approach Dubai has towards businesses and investors. Mirabello Consultancy will guide you through the entire process, step by step.
Residency Through Property Investment
Residency through property investment is a popular route for investors looking to obtain residency in the UAE, particularly under the Golden Visa initiative.
If you invest at least AED 1,000,000 in a property, you can qualify for a two-year residency. You can take a mortgage in a UAE bank, but will have to make a down payment of 50%. This price can vary if you own the house with a spouse.
If you invest AED 2,000,000 or more, you can obtain a 10-year residency. If you take a loan, you will have to make a down payment of 20%. This price doesn’t depend on family composition.
Investments can be made in both completed and off-plan residential, commercial, or mixed-use properties, as long as they are in the Freehold Zones.
UAE Golden Visa is initially issued for either 2, 5 or 10 years. After that, you need to renew your residence permit, which can be done, if:
The real estate property remains in the full ownership of the applicant,
The relevant leases/contracts still are valid and meet the requirements.
Mirabello Consultancy, which specializes in international residency and citizenship investment, can guide you through the process of receiving a UAE Golden Visa.
Tax and Financial Considerations
One of the most attractive aspects of buying property in Dubai is the absence of property tax, capital gains tax, and income tax. However, buyers should account for the following fees:
When a property is sold, the Dubai Land Department (DLD) imposes a one-time transfer fee of 4% of the property’s value. Additionally, a standard administration fee is applied, which is typically around $1,090, as well as registration fees ($21,800 and up).
Real estate agents usually charge 2% of the property price as a commission.
Service charges also apply, and can range from $1 to $8 per square foot annually, depending on the property type and location.
The UAE Golden Visa program offers many avenues for gaining residency through property investment and, with many real estate options, tax benefits, and high return potentials acting in the investor’s favor, Dubai has become a popular option. By working with residency and citizenship specialists like Mirabello Consultancy, you can navigate the complexities of the city’s property market and make informed decisions that maximize your investment potential.
FAQ
Through the Golden Visa initiative, depending on the size of the investment, buyers can qualify for 2, 5, or 10 years’ residency.
The Golden Visa requires an investment of at least AED 2,000,000, either in one property or multiple property under the name of the applicant.
No, foreign investors in designated freehold areas have full rights to sell, lease, or transfer their property as they see fit.
While not legally required, hiring an experienced property expert is advisable to ensure all legal procedures are followed and to manage due diligence.
Service charges range from $1 to $8 per square foot annually, depending on the property type and location, covering upkeep of the building, security staff and amenities like in-house gymnasium and pool area.
