Apartments for Expats in Dubai: Useful Tips for Selecting and Buying Properties

The UAE real estate market's remarkable growth rate continues to capture attention. According to the Dubai Land Department (DLD), property prices surged by over 33% in 2022. The appeal of robust economic and investment opportunities, coupled with a comfortable lifestyle, has attracted an increasing number of foreign investors to the UAE real estate market. As of 2022, Russians, Indians, and the British stand as the top three nationalities with the highest investments in Dubai's properties. If you're an expatriate considering purchasing a flat in Dubai, explore our comprehensive guide covering essential information on property acquisition, required documentation, and navigating the mortgage process.

• Why Expats Choose Real Estate in the UAE
• Can Expatriates Buy Properties in Dubai?
• Selecting Your Ideal Dubai Residence As an Expat
• What Else Expats Should Consider When Choosing Where to Settle
• How to Choose a Property
• How Expats Can Buy Flats in Dubai
• Buying a Property with a Mortgage
• Fees to Pay After Purchasing Real Estate

Why Expats Choose Real Estate in the UAE

The UAE has witnessed a fresh economic resurgence post-pandemic. According to statistics from the Dubai Land Department (DLD), investments surged by 70% in the initial half of 2022. This surge in investment is not only a testament to the enticing opportunities but also reflects the appeal of residing in a highly developed nation. 

Purchasing Real Estate Here Is Easy

The UAE government has streamlined real estate acquisition for foreign investors to the fullest extent. You now have the flexibility to purchase a flat through various options, including remote purchasing, cryptocurrency transactions, mortgage arrangements, and instalment plans.

To accomplish this, you'll only require three or four essential documents. Keep scrolling to discover which ones are needed. 

Getting a Residence Permit in the UAE

Becoming a property owner in the UAE grants you the opportunity to secure a residence permit or visa. For instance, upon purchasing a property valued at 2 million AED (approximately $545,000), you can obtain a "Golden Visa" valid for either five or ten years. Investing in a property valued at 750,000 AED ($204,000) can secure you a two-year residence permit, which can be extended subsequently. In both scenarios, the total value can encompass one or multiple properties within Dubai. This offers you a dual advantage: not only can you establish residency and reside in one apartment, but you can also lease out other properties for additional income.

High Yield 

In Dubai, the annual rental yield falls within the range of 5% to 10%, contingent upon factors such as housing type and location. Additionally, certain individuals opt to acquire flats for short-term investment purposes, intending to resell them at a later point. This approach proves highly lucrative, given the prevailing supply-demand dynamics favouring flats. This trend is particularly pronounced when considering luxury and ultra-luxury properties, which have consistently experienced robust demand over the recent years, resulting in appreciating prices.

No Property Taxes

Individuals are exempt from paying property, dividend, interest income, wealth, and several other types of taxes. Additionally, income generated from property rentals is also tax-free. 

The UAE has established a notably business-friendly environment. As of June 1, 2023, the corporate income tax rate stands at 9%. It's important to note that this rate is applicable solely to companies generating annual revenues exceeding 375,000 AED (slightly over $100,000). Exceptionally, elevated tax rates are exclusively pertinent to oil and gas entities, along with branches of foreign banks.

High Level of Security

In 2021, the Emirates secured the distinction of being the world's second safest country, trailing only behind Iceland, as recognized by Global Finance magazine. Notably, according to analysis by Numbeo, the UAE ranks among the top three countries with the lowest crime rates. While engaging in corruption can result in lengthy prison sentences, instances of personal offences are rare for residents and citizens. Vigilant CCTV surveillance continually monitors the streets of Dubai, contributing to the overall security environment.

High-Quality Healthcare

Dubai proudly offers an extensive array of over 500 healthcare facilities, a considerable portion of which extends their services to foreigners possessing medical insurance. With an impressive ratio of 180 medical specialists per 100,000 residents, concerns about prolonged waits in waiting rooms are largely mitigated.

Can Expatriates Buy Properties in Dubai?

Certainly, though this applies exclusively to specific zones. The emirate is compartmentalised into distinct areas delineated by property ownership classifications.

Freehold Zones

Expatriates enjoy the privilege of purchasing and possessing real estate without constraints solely within freehold zones. Dubai boasts a plethora of these zones, exceeding 60 and continuously expanding. The city's most renowned locales, such as Dubai Marina, Business Bay, Palm Jumeirah, and Downtown, are encompassed within these freehold zones. Within this realm, proprietors of freehold properties wield unrestricted authority to engage in various activities involving their real estate, including sales, bequeaths, exchanges, and rentals. It follows suit that a significant majority of expats opt to secure properties within these freehold zones, owing to the prevalence and convenience of this form of ownership.

Leasehold Zones

Within the leasehold zones, foreigners have the option to acquire property rights for a defined duration, typically up to 99 years. Nonetheless, additional limitations come into play. The proprietor is authorised to lease or transfer ownership of the property solely with the approval of the principal owner, often the developer. Leasehold arrangements were primarily instituted to bolster the local populace, as real estate within these sectors bears a lower cost, alleviating the financial obligations for prospective buyers.

Upon the expiration of the lease term, property rights revert to the primary owner. Acquisition of real estate within leasehold zones is exclusively accessible to UAE citizens and residents of other nations bordering the Persian Gulf. Intriguingly, leasehold further delineates into two distinct forms of ownership: usufruct and musataha.

Usufruct

Usufruct entails the privilege of utilising another person's property and accruing profits derived from it. However, it's important to note that this right does not extend to alterations or modifications of the property, including remodelling or reconstruction. 

Musataha

Musataha signifies the ability to possess a land plot in Dubai for a span of 50 years, enabling construction and rental activities to yield profits. Importantly, the land plot itself cannot be sold, though the structures erected upon it can be sold, as ownership of these buildings pertains to the constructor.

Commonhold

Commonhold refers to a collective property arrangement within a residential block, wherein all property owners unite to establish a condominium for the shared utilisation of common areas. Additionally, they collectively address building maintenance matters autonomously.

Selecting Your Ideal Dubai Residence As an Expat

Dubai epitomises diversity, making it imperative to initially pinpoint the district that aligns with your preferences for settlement. If commuting is a factor, factor in the proximity between your desired locale and your workplace. 

Bear in mind that not all areas have nurseries and schools. Pet owners must be especially careful as some residential complexes and communities in Dubai do not allow pets. 

Let's look into the features of some of the most popular districts of Dubai.

Arabian Ranches

This is one of the most prestigious and, perhaps, the greenest place in Dubai. Arabian Ranches would appeal to foreigners with children who are not fond of the city's hustle and bustle. There are three artificial lakes surrounded by walking trails here. You can rest in one of the shaded areas with barbecue facilities, basketball courts, and parks. 

Arabian Ranches has several international schools (Jumeirah English Speaking School, Ranches Primary School), nurseries, and child centres. The city centre is just 20 minutes away.

Arabian Ranches predominantly features an array of villas and townhouses, showcasing architectural styles encompassing Spanish, Arabic, and various other designs. Villa prices commence at $1,000,000, while the most budget-friendly townhouse flat is priced at $400,000. 

Mirdif

This upscale locality proves ideal for students due to its proximity to the Academic City, housing an international university campus. Mirdif boasts a diverse range of 30 institutions catering to students from across the globe. Young residents can relish local school and nursery options, along with ample sports facilities for recreational pursuits. The locale offers the opportunity for leisurely strolls in the park and convenient mall shopping. A mere 20-minute trip will transport you to Downtown for further exploration.

Mirdif is characterised by a collection of low-rise residential offerings, encompassing townhouses, villas, and detached houses. For those who prioritise privacy, gated communities are also available within Mirdif. Real estate pricing in this area starts at $755,000.

Dubai Marina

If you lean towards a blend of vibrant urban living and coastal proximity, this locale might align well with your preferences. Dubai Marina, characterised by its towering skyscrapers, resonates as a bustling hub frequented by tourists. A plethora of bars, clubs, restaurants, and healthcare establishments pepper the streets. Noteworthy highlights encompass Marina Beach, an upscale marina, and a picturesque canal. On the flip side, Dubai Marina falls short in terms of children's amenities, with the nearest schools and nurseries situated in neighbouring areas.

Dubai Marina is synonymous with its array of sky-high flats, luxurious penthouses, and upscale apartments. The entry point for acquiring a flat in Dubai Marina commences at $700,000, while villas within the vicinity begin at $1.6 million.

Business Bay

Business Bay stands as a dynamic business hub with a magnetic pull for bachelors, office professionals, and youthful couples. Numerous companies have established their offices within this bustling district. Positioned at the epicentre of Dubai, Business Bay enjoys seamless accessibility via various modes of the city's public transportation network. While secondary schools might be absent, Business Bay is equipped with several primary schools and nurseries.

Prices for flats start at $150,000.

Damac Hills

Encompassing a sprawling, multifaceted community centred around a world-renowned golf club, this locale presents a diverse array of housing options, including flats, villas, and townhouses. Abundant shopping malls, nurseries, and a school contribute to the area's vibrant appeal. A mere 30-minute commute places you in the heart of the city centre.

The most budget-friendly flats in this vicinity are priced from $170,000, while the entry point for villa prices begins at $313,000.