Freehold Zones – Where Foreigners Can Buy
Since 2002, foreign nationals have been permitted to purchase property in designated freehold areas. Ownership is full title with no expiry date. The most important freehold zones include Downtown Dubai, Dubai Marina, Palm Jumeirah, Business Bay, Jumeirah Village Circle and Dubai Hills Estate.
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Golden Visa via Property Purchase
Purchasing a property worth at least AED 2,000,000 qualifies you to apply for a 10-year UAE Golden Visa. The visa covers your spouse and dependents. It does not require employment in the UAE and is renewable indefinitely.
The Purchase Process
- Agree on a price and sign a Memorandum of Understanding (MOU) with the seller. A deposit of 10% is standard.
- Apply for a No Objection Certificate (NOC) from the developer. This confirms there are no outstanding service charge arrears.
- Both parties attend the Dubai Land Department (DLD) to transfer title. The buyer pays a 4% transfer fee.
- The DLD issues a new title deed in your name. The entire process typically takes 2 to 4 weeks for cash purchases.
| Transaction Cost | Amount |
|---|---|
| DLD transfer fee | 4% of purchase price |
| DLD admin fee | AED 540 – 4,000 |
| Agent commission (buyer) | 2% of purchase price |
| Mortgage registration (if financed) | 0.25% of loan amount |
Financing and Banks
Non-resident buyers can obtain mortgages from UAE banks, though the conditions differ from those for residents. A non-resident typically needs to put down at least 20% for properties under AED 5,000,000. Banks such as Emirates NBD, Abu Dhabi Commercial Bank and Mashreq offer specific non-resident mortgage products. Interest rates are variable and currently range from around 4% to 5.5% per annum.
Price Levels and Rental Yields
| District | Avg Price/sqm (AED) | Typical Gross Yield |
|---|---|---|
| Downtown Dubai | 18,000 – 28,000 | 5 – 6% |
| Dubai Marina | 14,000 – 22,000 | 6 – 8% |
| Palm Jumeirah | 22,000 – 40,000 | 4 – 6% |
| Business Bay | 13,000 – 18,000 | 7 – 9% |
| JVC | 9,000 – 13,000 | 8 – 10% |
| Dubai Hills Estate | 14,000 – 20,000 | 5 – 7% |
Exit considerations: There is no capital gains tax in Dubai. When you sell, you pay a 4% DLD fee again. Liquidity in the Dubai market is generally good for properties under AED 5,000,000. Ultra-luxury units above AED 10,000,000 can take longer to sell.
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