Dubai’s real estate marketplace is attracting a lot of international buyers because it has been offering world-class properties to invest in. The city certainly offers a luxurious lifestyle and a wide selection of properties to choose from. However, before opting for a property, there are a few considerations you need to make beforehand. Apart from conducting research on the market dynamics, property amenities, and everything else, you also need to understand the legal aspects of buying a property in Dubai.
Especially if you are an international buyer, there are some legal considerations you need to make, before you go make your final decision.
Restrictions on foreign ownership
Though, international buyers are allowed to purchase a property in UAE and Dubai, but with some restrictions. If you are buying a property as an international buyer, you can only buy properties in “freehold zones.” These areas have been specified only for international buyers for those who wish to invest in the real estate sector.
International buyers can easily buy properties in Dubai such as Jumeirah Lakes Towers, Downtown Dubai, and Palm Jumeirah. This means foreign buyers cannot buy properties in all the areas of the city. Hence, you should make sure that the property you are planning to invest in is located in a freehold zone.
Understand the type of property ownership
International buyers can choose from different property ownership before buying a property in Dubai. However, this completely depends on the regulations of the property. For example, if you are investing in a property with freehold ownership, you will get the outright ownership of the property which includes the land as well. On the other hand, leasehold ownership allows users to invest in a property that allows them a long-term leasing option. However, he does not get the ownership of the land. If you are going ahead with the leasehold agreement, your agreement would last for only 99 years. Make sure that the title deed includes the details of the type of property you are choosing.
Understanding the eligibility criteria
Though you may be allowed to invest in Dubai real estate as an international buyer, however, to make sure that you get to enjoy all the associated benefits, you need to meet certain requirements. A buyer is recommended to apply for the residency visa which you can only acquire if your purchased property’s minimum value threshold is approx. 1 million. This particular visa remains valid for around 2 to 3 years. However, you can renew it for as many times as you want.
Get familiar with mortgage terms
Being an international buyer in Dubai does not mean that you cannot finance your property through a mortgage. However, you need to make sure that you are well-versed with the mortgage terms specified for foreign nationals. Try to know the comprehensive details about the interest rates and any kind of restrictions on the property or seeking finance.
Conducting a research and property registration
Before making your final decision, you need to perform due diligence so that you can find out about the legitimacy status of the property. This helps in making sure that the property has a valid title deed and lets you understand that the developer has all the necessary permits for construction as well as selling the property.
In addition to that, if you are buying a property and do not wish to miss out on any legal implications, then you should immediately register it with the Dubai Land Department (DLD).
Conclusion:
Apart from the legal considerations given above, there are some more legal aspects you need to take into consideration. This includes tax considerations, capital gains tax, community service fees, and so on. Make sure you are prepared to pay any transaction-related costs. You can also hire a local lawyer to avoid any legal issues. Also, conduct research about the resale and inheritance laws related to the purchase of the property.