Dubai is one of the best places to invest in real estate. People across the world keep their eyes on Dubai-based properties. In fact, they often visit Dubai, especially for investment opportunities. Of course, not everyone can come to Dubai frequently. In such a case, the biggest question that comes to our mind is ‘how to invest in Dubai real estate from abroad?’. This article is a step-by-step guide for you.
Eligibility Criteria to Invest in Dubai Real Estate From Abroad
Investing in Dubai is an easy process. It offers the investors a tax-free environment making it the center of attraction for investors across the globe especially in India. However, as per Article 3 of Regulation No. 3 (2006), Foreigners can only purchase the land plots that are designated as freehold properties. In addition to that, you must have the following documents to invest in Dubai:
- A Valid Passport
- Income certificate proof
- A signed purchase agreement
- Recent bank statements
- A No Objection Certificate (NOC) from your employer
Additional Considerations to Invest in Dubai Real Estate from Abroad
Here are some of the additional considerations that you must consider when you want to invest in Dubai real estate from abroad:
- Check for Freehold Property: Make sure to check whether the property is in a free zone or not.
- Financing: If you want to take a loan or a mortgage, get the approval for in Principal amount from your bank or lender.
- Down Payment: Usually, the down payment for the property is 20-25%. Make sure to have the required amount available.
- Mortgage Options: The financing features of Dubai offers over 80% discounts and 25% collateral demands. If needed, make sure to check them all.
- Minimum Salary: You will need to have a salary of at least AED 15,000 to get loans from your banks.
How to Invest in Dubai Real Estate from Abroad?
You will need to follow the process below to invest in Dubai Real Estate from Abroad:
Research the Market
The first thing you need to do is to understand different types of properties that you can check on. As a foreigner, you can buy freehold properties. Don’t forget to study different trends like property pricing and present market conditions. Additionally, check the proper connectivity of the location.
Check the Budget
Checking for your budget is an important step. You must go through your financial capacity which includes costs like registration and agency fees. If your budget is low, you must avoid the most expensive properties. Don’t forget to look for all the financing options. You can either buy with the help of cash or take a mortgage option. There are a lot of banks in Dubai that provide mortgage options for non-residents. You may get up to 50-75% financing for non-residents.
Look for a Real Estate Agent
It is essential to select the right Agent that will help you buy the property. Before hiring one, try to compare different agents. Choose the one that provides you with the best deals depending on your needs. However, make sure you are hiring Real Estate Regulatory Agency (RERA) licensed agents.
Shortlist Properties
As an international investor, try to get virtual tours of the property. Do not forget to compare pricing and other related factors. Shortlist some properties and if possible, plan a visit to Dubai. It will help you to know the property’s condition, amenities, and community features.
Make an Offer
Once, you finalized the property, make sure you negotiate for the price. Work with the agent and try to give a competitive offer. When done, you will need to sign a Memorandum of Understanding (MoU), that shows the terms and conditions of the sale of the property.
Hire a Lawyer
Although it is an optional step, hiring a lawyer can help you go through the contracts. The lawyer will guide you ensuring the transparency and verification of the documents. They will also help you in checking if there are any property disputes or legal ownership.
Pay the Deposit Amount
Typically, 10% amount of the property price is paid to the developer or the seller of the property as a part of the commitment. However, the amount to be paid depends upon the developer of your property. Don’t forget to get the receipt or the acknowledgment of the payment from the seller.
Apply for NOC
NOC helps to make sure that there are no outstanding debts, pending fees, or disputes on the property. The best way to do that is to apply through the developer. It will make your work easier.
Transfer Ownership
To get the transfer ownership, you will need to go to the Dubai Land Department (DLD). Both the buyer and seller need to be present there. You will need to pay the transfer and admin fee which is 4% of the property value and AED 2,000-4,000 respectively. When done, you will get the title deed as proof.
Get the Utility Connection
Once everything is done, make the final payment if any, and register for DEWA (Dubai Electricity and Water Authority). It will help you to get supply for electricity and water supply.
Finally, you are done. Do whatever you want to do with the property. Either move in or Rent it out. The choice is yours.
Conclusion
Investing in Dubai is the main attraction of most of the investors across the globe. The tax-free environment is the cherry on top for them. However, to invest in Dubai real estate from abroad you must remember that you can only invest in freehold properties. Do market research, hire a real estate agent, select the property, and pay the amount of the property. Make sure that you have the necessary documents like a Valid Passport and Income Certificate proof to easily invest in the property.
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