The Ultimate Property Guide – Top 12 FAQ’s

Can foreigners purchase property in the UAE?

Foreigners can buy property in designated areas of the UAE. Dubai and Abu Dhabi offer freehold properties in specific zones, while Ras Al Khaimah allows foreign ownership throughout the emirate.

What’s the process for buying property in the UAE?

The property buying process in the UAE typically involves:

1. Property selection
2. Offer submission;
3. Signing the MOU – Memorandum of Understanding (if purchased from the secondary market) / Signing the SPA – Sale Purchase Agreement (if purchased directly from the developer / off-plan)
4. Obtaining a No Objection Certificate (NOC) – secondary market only
5. Ownership transfer at the land department

What additional costs are involved in UAE property purchases?

When buying property in the UAE, consider these additional costs:

• Registration fees (4% of property value in Dubai)
• Real estate agency fees
• Mortgage fees (if applicable)
• Property valuation fees (if applicable / required)
• Insurance costs
• Conveyance fees

Can expatriates obtain mortgages in the UAE?

Yes, expatriates can secure mortgages in the UAE, subject to specific requirements:

• 20% minimum down payment for properties up to AED 5 million
• 30% minimum down payment for properties over AED 5 million
• Additional bank-specific conditions

Which areas are popular for property investment in Dubai, Ras Al Khaimah, and Abu Dhabi?

Popular investment areas include:

• Dubai: Dubai Marina, Downtown Dubai, Business Bay
• Ras Al Khaimah: Al Hamra Village, Mina Al Arab, Marjan Island
• Abu Dhabi: Yas Island, Saadiyat Island, Al Reem Island

What property types are available for purchase in the UAE?

The UAE real estate market offers various property types:

• Apartments
• Villas
• Townhouses
• Commercial properties
• Off-plan properties

What’s the difference between freehold and leasehold properties in
the UAE?

Freehold properties offer full ownership rights, while leasehold properties have a fixed lease period. Abu Dhabi and Dubai offer both options, but foreigners are generally limited to freehold properties in designated investment zones.

What documents are required for property purchases in the UAE?

Essential documents for UAE property purchases by individuals include:

• Valid passport and visa
• Emirates ID (for residents)
• No Objection Certificate from the developer
• Sale and Purchase Agreement
• Proof of funds or mortgage pre-approval

Properties can also be purchased by local corporate entities, Family Foundations and Special Purpose Vehicles. Corporate purchasers are required to submit their licences, by laws and a board resolution authorising the purchase along with a notarized power of attorney.

Can property investors obtain residency visas in the UAE?

Yes, property investors can secure residency visas in the UAE. Visa duration (3, 5, or 10 years) depends on property value and emirate-specific regulations.

For instance, the Emirate of Dubai provides investors with a 10-year Golden Visa for investments in the real estate market of AED 2,000,000 and onwards. This option is granted to off-plan investors as well provided they have paid at least 10% of the purchase price. You can find more detailed information on the available Golden Visa options at this link:Unlocking New Opportunities with the UAE Golden Visa: A Comprehensive Guide – Yungo Corporate

What are the potential ROI for UAE properties?

Investment returns vary by location and property type. Dubai offers average rental yields of 5-8% annually, with some properties reaching 10%. Ras Al Khaimah provides competitive returns due to its growing market and lower property prices compared to Dubai.

Why is a property survey important when buying in the UAE?

A professional property survey in the UAE is crucial, both when buying from the secondary market and when receiving the handover of a newly finished property, because it:

• Identifies structural defects or potential issues
• Ensures compliance with local regulations
• Provides accurate property valuation
• Prevents future boundary disputes
• Uncovers hidden problems not visible during casual inspections

Why should a lawyer review the Memorandum of Understanding (MOU) or the Sale and Purchase Agreement (SPA)?

Legal review of the MOU or of the SPA is essential because:

• MOUs and SPAs are legally binding agreements
• The UAE has a sophisticated legal real estate system, which contains elements of common law and elements of civil law. Having a lawyer by your side will avoid misunderstanding and unpleasant surprises and ultimately ensure you are fully informed of the risks connected with the investment.
• Legal terminology can be complex
• It ensures alignment with buyer interests and rights
• It identifies potential legal issues or unfavourable clauses
• It helps prevent future disputes and ensures compliance with UAE property laws