Buying property in Dubai as a foreigner: US guide

Moving to Dubai is an option that many Americans have considered - whether it’s for work, to start a business, or to enjoy living tax-free.

Thanks to the passing of 2002’s Freehold Law, foreigners have the right to buy, sell, and rent property in Dubai without any special regulations or permissions.

Regardless, it’s important to understand all the intricacies of buying property in Dubai before deciding to make a purchase. This guide will walk you through what you need to know about buying property in Dubai as a foreigner.

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Table of contents

What’s the property market like in Dubai? Can a U.S. citizen buy property in Dubai? Buying property in Dubai: costs, taxes, and fees Buying property abroad? Send money the hassle-free way with Wise How to buy property in Dubai as an American: step-by-step How can I find a property in Dubai? How do I choose the right property? How do deposits, down payments, mortgages, and bank loans work in Dubai? What are the best places to buy property in Dubai?

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What’s the property market like in Dubai?

The property market in Dubai is booming. In the last quarter of 2023, there were 31,920 transactions worth 147 billion AED, which shows strong investor confidence and sets new records.¹

The average property prices are rising, and more and more people are considering buying property in Dubai. The fact that there are no property taxes helps, too.

Can a U.S. citizen buy property in Dubai?

Yes. Thanks to legal changes in 2002, foreigners can buy, sell, and rent property in Dubai without any special regulations or permissions.

What are the legal requirements to buy property in Dubai from the USA?

US citizens can buy property in Dubai pretty easily, as long as you do it in the designated freehold zones. Dubai Marina, Downtown Dubai, and Jumeirah Lake Towers are all popular neighborhoods.

As long as your finances are in order, you can buy all types of properties in Dubai, from studio apartments to big villas. You can buy both pre-construction properties and those that are already available.

Can you buy property in Dubai without residency?

Yes, you can buy property in Dubai without residency. In fact, buying property in Dubai can open a path to UAE residency.

If you purchase property for  2 million AED (~545,000 USD), you can apply for a 10-year Golden Visa. If you purchase property for 750,000 AED (~204,000 USD), you can get a 2-year residency visa.²

Buying property in Dubai: costs, taxes, and fees

Dubai has attractive tax laws, but buying property in Dubai comes with certain costs, taxes, and fees. Here’s more information so you can make an informed decision.

What’s the average cost of real estate in Dubai?

It’s a good idea to have a ballpark estimate of how much an apartment, home, or land should cost. This table includes some example prices for available property in a few popular Dubai neighborhoods.

Neighborhood	Average Cost
Dubai Marina³	3M AED
Jumeirah Village Circle³	777K AED
Business Bay³	1.4M AED
Dubai Hills³	2M AED
Jumeirah Lake Towers³	1.2M AED

Wondering how much that would cost in USD? Check out this handy conversion calculator:

While these prices serve as a good example, it’s important to remember that there’s a significant rate of variation between flats, even within the same neighborhood. Depending on amenities, maintenance, or when the home was built, the price can go up or down by about 500,000 AED for a villa or apartment of the same size.

What kind of taxes and fees will I need to pay?

There is no property tax on residential properties in Dubai. However, there are fees associated with your real estate purchase.

The table below does a good job of showing the fees you'll encounter when purchasing property in Dubai.

Fee Type	Cost
Property Registration Fee	4% when the property is registered in the name of a new owner⁴
Transfer Fee	4% when the property is transferred from one party to another⁴
Mortgage Registration Fee	0.25% of the mortgage amount⁴
Title Deed Fee	4,000 AED for properties valued up to 500,000 AED 8,000 AED for properties valued above 500,000 AED⁴
Brokerage Commission	Typically 2-3% of the property value⁴

Whether you’re buying property to live or invest in, Dubai’s simplified tax system is the number one advantage to purchasing in the region.

When you buy property in Dubai, you’ll need to pay a one-time fee for the land registry. This comes in at 4% of the sale price of your new property.

Technically, half of the fee is paid by the buyer, and the other half is taken care of by the seller. That being said, in practice this fee is more often paid in its entirety by the buyer. The fee is payable to the land department and must be paid on the day of the ownership transfer.

Beyond the land registry fee, there’s no property tax in Dubai, and you won’t incur tax by renting your property out. Overall, it’s a winning investment.

Buying property abroad? Send money the hassle-free way with Wise

Now that we covered all the basic costs of purchasing a home in Dubai, the only question left is: how to send money to pay for your property overseas?

Wise offers you a quick, secure and transparent way of sending money to Dubai. You get the mid-market exchange rate for your payments and see how much it’s charged for the transfer before sending the money from your bank.

With the Wise Account you can also hold 40+ currencies, spend money in 150+ countries, and receive like a local in 9 different currencies.

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Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information

How to buy property in Dubai as an American: step-by-step

Buying property in Dubai as an American is easy, but understanding the process helps you feel more confident and avoid common mistakes.

Some of the key steps to take for property buying include:

1. Determine property type: Decide if you want to buy an apartment, a villa, a plot of land, or a commercial space
2. Do an online search: Look for available properties that fit your requirements
3. Contact a real estate agent or developer: You can get more information and schedule a viewing
4. Figure out financing: Decide if you need a mortgage and whether you’re eligible to get one
5. Choose a property: Make sure it meets your needs and preferences
6. Pay your deposit: There’s a minimum 25% down payment required to purchase property⁵
7. Pay the fees: You may need to pay a property registration fee, a brokerage commission, and any other applicable fees

Just like that, you’re now a property owner in Dubai!

How can I find a property in Dubai?

To find Dubai properties available to buy, some good places to start include:

1. Luxhabitat
2. Bayut
3. BetterHomes
4. Dubizzle
5. Property Finder

There are three main types of property you can buy as a foreigner in Dubai, and each of them typically correlates to a different style of land or home.

Freehold properties

Typically seen as the most desirable, freehold property is often sought by foreigners looking to invest. Freehold properties are entirely yours and can be sold, rented, and passed on as inheritance as you wish.

The freehold property type is most often associated with undeveloped land parcels, versus homes or apartments. However, it isn’t uncommon to buy prefabricated homes in a freehold arrangement.

If you’re going to buy a freehold property, you’ll need to purchase it from a real estate developer that’s been approved by the emirate’s government.

Usufruct properties

Another type of property arrangement is usufruct, which essentially translates to a long-term lease. You can do whatever you want with an usufruct property, except for destroying it.

These types of leases last from 10-99 years, depending on whether you’re buying commercial or residential property and your negotiations.

Commonhold properties

The final type of property is commonhold, which is most like condominiums in other countries. Owning a commonhold property gives you the right to buy, sell, rent, or pass the property down as an inheritance, much like a freehold property.

However, commonhold properties are typically apartments, and owners are required to pay maintenance fees for the building and its common areas, which are most often owned by the developer.

How do I choose the right property?

As you begin your property search, it’s a good idea to keep a couple of things in mind.

Traffic is important

Traffic in Dubai is notoriously bad, and roads running from Sharjah into Dubai can be a nightmare. If you’re going to have to commute into the center of the city, it’s important to consider distance and even run a test drive before settling on a property.

Choose the right neighborhood

Location, location, location. Whether it’s to live or invest, choosing a good neighborhood is essential for enjoying Dubai, and picking the right one will seriously up the rental value if your plan isn’t to live there.

Some of Dubai’s most popular neighborhoods include:

• Dubai Marina
• Al Barsha
• Garhoud
• International City
• The Greens

Pay attention to parking

If you’re buying a prefabricated home or apartment, you may not be thinking of parking as a number one priority. In Dubai, however, purchasing a property that doesn’t come with some type of covered car park can be a huge mistake.

Thanks to summer temperatures around 50ºC (122ºF), cars that are left outside are not only unbearable to drive, they tend to deteriorate quickly.

How do deposits, down payments, mortgages, and bank loans work in Dubai?

You may need to get a loan or mortgage to buy property in Dubai. Getting a mortgage in Dubai is possible, but certain limits may apply. Generally speaking, you need to be making at least 15,000 AED (~4,000 USD) per month to qualify.⁵

Choosing a bank

Mortgages and loans can be taken out from pretty much any reputable financial institution, but some of the most favored are Mashrek, Emirates NBD, and HSBC.

While technically all of these banks will loan to foreigners, you may find that you have better luck at a large international bank, like HSBC, than you would at the local banks.

Ultimately, as long as you have proof of steady income, you should qualify for a mortgage or home loan in Dubai. The best way to find out is to take your documentation to a bank. If you’re not already banking in the city, it’s a good idea to learn how to open up a bank account in Dubai to start.

Typically the documents you’ll need to apply for a loan include:

• Passport (and passport copies)
• Proof of residence/ visas
• Proof of current address
• Salary certificates of proof of income
• Bank statements going back six months to a year

While it’s less common, it’s possible to take out a personal loan in your home country and use those funds towards a home in Dubai. If you can get a mortgage in the Emirate, however, you’ll be better off. Most foreign banks aren’t eager to issue loans for homes in what’s considered a high-risk real estate market.

Learn more about getting a mortgage in Dubai in our full guide.

Making a deposit or down payment

It’s important to consider just how much money in total you’ll need to fork over at the start of your purchase.

The minimum down payment on a home in Dubai is 25% of the total price.⁵ Some developers selling off-plan properties will require you to put down 100% upfront.

That number can add up to something staggering, so it’s important to have a pretty large nest egg or be able to take out a sizable loan to buy your property.

What are the best places to buy property in Dubai?

When it comes to choosing the best places to buy property in Dubai, you have many options. Some of the most popular neighborhoods include Dubai Marina, Jumeirah Village Circle (JVC), Business Bay, Dubai Hills, and Jumeirah Lake Towers (JLT).

• Dubai Marina: If you’re into luxurious waterfront living, you’ll love the high-end apartments with stunning marina views.
• Jumeirah Village Circle (JVC): A more affordable place to buy your Dubai property that’s ideal for families.
• Business Bay: With a mix of commercial and residential properties, Business Bay offers strong rental yields.
• Dubai Hills: A large-scale development with high-quality amenities for sophisticated urban living.
• Jumeirah Lake Towers: A great area for both living and renting out your Dubai investment.

You should also consider the cost of living in Dubai when deciding where to buy your property.

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Now that you’re all set to start looking at homes and plots in Dubai, it’s important to also figure out how you’re going to get money in the UAE. Remember, you’ll need a minimum 25% deposit to purchase your property. ⁵

Wise makes it easy to move money to the UAE with no hidden fees* or exchange rate markups. It’s a fast, simple, and secure way to make large transactions overseas.

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Sources:

1. Morgan’s International Realty - Q4 2023 Dubai real estate market report
2. Immigrant Invest - UAE residence visa
3. Fam Properties - Dubai properties prices, 2023
4. Fam Properties - What are the DLD charges in the UAE?
5. Property Finder - How much do you need to earn to buy a property in Dubai?

Sources checked on 07.31.2024