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6 Frequently Asked Questions - Buying Property in Dubai: What Foreigners Need to Know

Updated: Sep 3, 2023

  1. Can You, as a Foreigner, Actually Buy Property in Dubai? - Yes

  2. Can You Get a Mortgage in Dubai? - Yes

  3. What's the Going Rate for a Studio or 1BR Apartment? - US$300k

  4. How Much Is a Square Foot in Dubai? - US$300 Psf

  5. What About Rental Yields? - 5-6%

  6. Is Dubai a Good Place for Investors?


Dubai Skyline


Hey there, curious about investing in Dubai's real estate market? You're in the right place! Dubai, with its dazzling skyline, cosmopolitan lifestyle, and booming economy, has become a top pick for real estate enthusiasts from around the world. In this article, we'll walk you through the ins and outs of buying property in Dubai as a foreigner, including mortgages, average prices, cost per square foot, and rental yields.


1. Can You, as a Foreigner, Actually Buy Property in Dubai?


Absolutely! Dubai's government rolled out the red carpet for foreign real estate investors years ago. They created what's known as freehold zones where non-UAE residents can buy property. These zones include sought-after spots like Dubai Marina, Downtown Dubai, and Palm Jumeirah. You can also snag properties in leasehold areas for a healthy 99 years.


2. But, Can You Get a Mortgage in Dubai?


You sure can! Getting a mortgage in Dubai is doable for foreigners, but the rules vary from bank to bank. Generally, you'll need to cough up at least 25% of the property's price as a down payment. Your age and income also come into play. To get the lay of the land, it's a smart move to chat with us.


 


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  • Property Buying Process & Regulations.

  • Benefits of Investing in Dubai.

  • Overview on Key Major Developments in Dubai.

  • Analyze and Compare Key Areas in Dubai.

  • Legal Safety for Foreigners Investing in Dubai.

  • Mortgages and the Profitability of it.

  • Investor Visa Application.

  • Long Term vs Short Term Leasing.​

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3. What's the Going Rate for a Studio or 1BR Apartment?


As of the latest data, a studio or 1BR apartment in Dubai will set you back around US$300,000. But, remember, prices aren't set in stone. They can soar or dip based on where you're looking, who the developer is, and what fancy features your new pad boasts. Expect to pay more in the happening places like Downtown Dubai and less in up-and-coming neighborhoods.


4. How Much Is a Square Foot in Dubai?


On average, you're looking at about US$300 per square foot (PSF) in Dubai. However, this can sway quite a bit depending on the part of town and the type of property you have your eye on. Premium areas and swanky developments tend to command a higher PSF, while less fancy locales offer budget-friendly options.


5. What About Rental Yields?


Dubai's real estate market has a little something for investors, with rental yields averaging between 5% to 6%. So, if you're renting out your place long-term, you can expect to rake in around 5% to 6% of your property's value each year. However, you can expect even higher returns, in the range of 7%-12%, if you rent out your property for short-term such as airbnb. Just keep in mind that this number isn't set in stone. You'll need to factor in expenses like property management fees, upkeep, and the possibility of the place sitting empty at times.


6. Is Dubai a Good Place for Investors?


Absolutely, Dubai has been a magnet for real estate investors for many reasons. Here's why it's such a hotbed for savvy investors:


  1. Stable Economy: It's not just about oil; Dubai is a thriving hub for finance, trade, tourism, and technology. This stability is a comforting factor for investors.

  2. Tax Benefits: Dubai offers tax advantages that make it incredibly attractive. There's no personal income tax, capital gains tax, or property tax.

  3. Infrastructure: The city is known for its cutting-edge infrastructure. Modern roads, world-class airports, and state-of-the-art facilities make it a prime destination for businesses and residents alike.

  4. Global Connectivity: Dubai's strategic location connects Europe, Asia, and Africa, making it a business and trade epicenter.

  5. Thriving Tourism: Dubai is a global tourist hotspot. If you invest in rental properties, you're tapping into a constant stream of tourists looking for a place to stay.

  6. Quality of Life: Dubai is a safe, cosmopolitan city with excellent healthcare, education, and entertainment options.

All these factors combined make Dubai a top-notch choice for investors. Whether you're looking for short-term rental income or long-term capital appreciation, Dubai has something to offer. Just remember, like any investment, it comes with risks, so it's wise to do your research and consult with experts to make informed decisions. Happy investing!

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