Can Foreigners Buy Property in Dubai?
The answer is Yes
Since opening its doors to international investors in 2002, Dubai is now one of the worldโs most popular real estate markets. It offers strong potential for high returns on investment (ROI), with average rental yields ranging from 5% to 8% in many areasโsignificantly higher than in many other major cities around the world. A tax-free environment is another reason why foreigners are particularly attracted to these emirates.
The city imposes no property tax, income tax, or capital gains tax, allowing investors to maximize their returns. It stands out as one of the few global cities offering 100% ownership rights to international buyers in designated areas, transforming it into a property investment paradise.
As the answer is yes, we think you do not have any doubt about Dubai property ownership for foreigners. But if you are going to invest, you need to know key details and about the market, best areas to invest, and the complete process.
Overview of Dubaiโs Property Market for Foreigners
Dubai real estate market is on the rise in 2025, with property prices growing steadily. According to ValuStratโs latest report, villa prices have grown 29% year on year and apartment prices 20% year on year.
The market is attractive to foreign investors who account for 43% of total residential value. This international demand supports property values, especially in prime areas, and contributes to the marketโs resilience.
In the first half of 2025, Dubaiโs residential sales value reached AED 262 billion (USD 39.26 billion) for apartments, 36.94% up year on year. Here is the recent performance of the Dubai real estate market.
| Category | Key Statistics | YoY Change |
|---|---|---|
| Total Sales Value | AED 262 billion | +36.4% |
| Number of Transactions | 91,900 | +23% |
| Average Price per Sq Ft | AED 1,609 | +16.6% |
| Off-Plan Sales | 64,500 transactions (70% of total) | N/A |
| Ready Property Sales | 27,400 transactions (30% of total) | +10% |
| Luxury Segment (>AED 20M) | 1,400+ transactions | +82% |
| Ultra-Luxury (>AED 50M) | 140 transactions | +33% |
| Rental Price Growth | +10% (vs H1 2024), -0.6% (vs H2 2024) | N/A |
What makes Dubai real estate for expats so good is:
- Strong rental yields (5-8%+)
- No property or income taxes
- Transparent regulations
- Expanding freehold areas
- Visa incentives for property investors
Legal Requirements for Foreign Property Ownership
Understanding the legal framework is key. The foundation of Dubai property ownership for foreigners is based on a clear distinction between freehold and leasehold ownership. This system determines your rights and the areas where you can buy property. Itโs a structure designed to welcome and protect international investment while managing land ownership.
Freehold vs Leasehold Ownership
The biggest development for foreign investors was the introduction of freehold ownership. Freehold property in dubai for foreigners means you own the building and the land it stands on. This ownership is registered in your name with the Dubai Land Department and is yours forever. You can sell, lease or inherit the property without any time restrictions, you have full control.
Leasehold ownership gives you the right to a property for a fixed term, usually up to 99 years. You donโt own the land. At the end of the lease term, ownership reverts to the landlord or freeholder. Less common for individual buyers but an option in certain areas and for specific types of commercial properties.
Age and Eligibility
The legal framework is simple and has minimal hurdles. The minimum age to buy property in Dubai is 21 years old. Beyond that age requirement there are no restrictions based on nationality or religion. You just need a valid passport to start the process. This openness is a reflection of Dubai being a global city for all.
Required Documents
- Valid passport
- Reservation form
- Signed Sales & Purchase Agreement (SPA)
- No Objection Certificate (NOC) for certain properties
- Proof of funds (for mortgage buyers)
There are no age or residency requirements for foreign buyers. You can buy properties in freehold areas without a visa or local sponsor.
Eligible Areas for Foreign Buyers in Dubai
So, can you buy property in dubai as a foreigner anywhere you like? The answer is no. Your ability to purchase is limited to specific โfreeholdโ areas designated by the government. These areas have been specifically approved for foreign ownership under Dubaiโs Real Property Law (Article 3 of Regulation No. 3 of 2006). Luckily, these areas include some of the cityโs most popular and iconic areas, with world-class amenities and lifestyles.
The list of freehold areas is extensive and growing. Choosing the best place to buy property in dubai is all about your personal goals, lifestyle, and investment strategy. Whether you want city life, waterfront living or a family-friendly community, there is a freehold area that suits you.
Freehold Areas for Foreign Investors
Western Dubai:
- Dubai Marina
- Palm Jumeirah
- Al Barsha South 2-3
- Jumeirah Beach Residence
Central Dubai:
- Downtown Dubai
- Business Bay
- Sheikh Zayed Road
- Emirates Hills
Eastern Dubai:
- Mirdif
- Ras Al Khor
- Dubai Silicon Oasis
- Al Quoz Industrial Area
Southern Dubai:
- Jebel Ali
- Palm Jebel Ali
- The World Islands
- DAMAC Lagoons
The list of freehold zones is part of Dubaiโs strategy to attract more global investors. In 2025 expats can buy property in more freehold zones across Dubai, with ownership rights being extended to more areas.
How to Buy Property as a Foreigner
Buying property in Dubai is a structured process designed to be easy for international investors. Hereโs how to how do foreigners buy property in Dubai:
1. Property Selection and Initial Agreement
Research areas and properties that fit your budget and goals. Once youโve found your dream property, submit a reservation form with a deposit (usually 5-10% of the property value).
2. Due Diligence
Before you proceed, do your due diligence:
- Check the developerโs credentials with the Dubai Land Department
- Verify if the property is registered with the Real Estate Regulatory Agency (RERA)
- Review the payment plan and all contract terms
- Inspect the property (for ready properties)
3. Formal Purchase Agreement
Sign a Sales & Purchase Agreement (SPA) that outlines all terms, conditions and payment schedules. This binding document protects both buyer and seller.
4. Payment and Financing
You can pay in full or arrange financing. Can foreigners buy apartment in Dubai through mortgages? The answer is yes, but note that:
- Non-residents may need to pay a 20-30% down payment
- Loan terms are 15-25 years
- Interest rates vary based on residency status
5. Property Registration and Transfer
The final step is to register the property with the Dubai Land Department and transfer ownership. This process involves:
- Getting a No Objection Certificate from the developer
- Pay the transfer fee (4% of the property value)
- Get your title deed (proof of ownership)
For ready properties, the process takes 2-4 weeks. For off-plan properties, the timeline depends on construction completion.
Costs and Fees Involved in Buying Property
When you buy property in Dubai, you need to budget for more than just the purchase price. There are several one-time costs and fees involved in the transaction. Knowing these upfront will avoid any surprises during the process. These fees are regulated and part of every property purchase in the emirate.
Considering how to buy property dubai from India or any other country involves understanding these local costs. The process is the same for all nationalities but you also need to factor in currency conversion rates and international bank transfer fees. Using a reliable currency exchange service can save you money on these transfers.
| Cost | Amount |
|---|---|
| Dubai Land Department Fee | 4% of the purchase price + AED 580 admin fee for the title deed |
| Property Registration Fee | AED 2,000 plus 5% VAT for properties valued below AED 500,000 AED 4,000 plus 5% VAT for properties above AED 500,000. |
| Mortgage Registration Fees | 0.25% of the mortgage amount + AED 290 |
| Agency Fee | 2% of the purchase price + 5% VAT |
| Conveyancing Cost | Typically costs from AED 6,000 to AED 10,000, depending on the services offered. |
| Bank Mortgage Arrangement Fee (if mortgage taken) | Usually 1% of the loan value plus an additional 5% VAT. |
| Property Valuation Fee (if mortgage taken) | Typically between AED 2,500 to AED 3,500, plus 5% VAT |
| Home Insurance (not mandatory) | About AED 1,000 - but depends on the property |
| Life Insurance (not mandatory) | Typically charged at 0.4-0.8% per annum on the decreasing loan balance. |
| DEWA deposit | AED 2,000 (apartments) to AED 4,000 (villas) |
In Dubai, there are no annual real estate taxes, income tax or capital tax tax which is exceptionally attractive compared to most global real estate markets.
Benefits and Risks of Investing in Dubai Real Estate
Dubai property investment for foreigners requires a balanced view of benefits and associated risks. Dubai is an attractive destination for global investors, but like any investment, it does not work without risk. Knowledge of boths will help you make informed decisions and make a strategy to maximize your profits to protect your capital.
Benefits of investment in real estate in Dubai
The benefits of property ownership in Dubai are numerous. Investors from all over the world are attracted to the city for its friendly business and high quality of life.
- Strong Rental Yields
Dubai offers rental yields of 5-8%+ which is higher than many global cities. Prime areas like Dubai Marina and Downtown Dubai are especially profitable for rental investors.
- Tax Free
No property tax, no income tax and no capital gains tax. You only pay a one time 4% transfer fee when you buy.
- Residency Visa Eligibility
Property investment can get you a UAE residency:
- 2 year renewable visa for investments of AED 750,000+
- 10 year Golden Visa for investments of AED 2 million+
- Market Appreciation
Dubaiโs property market has shown long-term growth potential. Property values in many areas are now 66-175% higher than post-pandemic levels.
- Infrastructure Development
Ongoing infrastructure projects, economic diversification and tourism growth will continue to boost property values and rental demand.
Risks to Consider
Itโs equally important to be aware of the risks of buying property in Dubai. A clear view of these potential issues is a hallmark of a smart investor.
- Market Volatility
While Dubaiโs market has been resilient, it can go through cycles. Different segments (luxury vs affordable) may perform differently during market adjustments.
- Supply Concerns
Dubai has a huge pipeline of new developments. Nearly 300,000 units will enter the market by 2028 which can affect property values and rental rates in some areas.
- Regulatory Changes
While Dubaiโs property laws are investor-friendly, regulations can change. Staying informed about legal updates is crucial for foreign investors.
- Off-plan Risks
When buying off-plan properties in Dubai, construction delays or developer issues can happen. Working with reputable developers and checking RERA-approved projects minimizes these risks.
Top Off-plan projects in Dubai for Foreigners
| Azizi Abraham | Elaris Rise | DAMAC Bali 4 |
|---|---|---|
| Sobha The Serene | Evergr1n House 4 | Eywa The way Of Water |
| Aizi Milan Heights | D-Villas by Dar Global | Omniyat Bespoke |
| One Casa | Mews Mansions | Su Misura |
Final words
Yes, you can buy property in Dubai as a foreigner. Dubai has one of the most open real estate markets in the world for international investors with full ownership rights, a transparent process and tax-free.
The Dubai freehold property for foreigners options are growing and offer various investment opportunities across different price points and property types. Whether you want luxury waterfront villas, city center apartments or emerging area investments, Dubai has it all.
