A guide to buying property in Dubai as a foreigner in 2025

Known for its towering skyscrapers and status as a city of superlatives, Dubai is increasingly popular with international investors due to its dynamic real estate market. Offering tax benefits and attractive returns, as well as its status as a global hub, Dubai is a coveted destination for property investment. Magellan, your advisor for relocation to Dubai, outlines how you can make your property acquisition in the UAE’s most famous emirate.

A thriving real estate market

Dubai’s real estate market has been experiencing sustained growth since 2021. In the first half of 2024, the prices for high-end residential properties rose by 7%, while the number of available properties dropped by 47%. The city has surpassed many other cities to become the top luxury market globally, with 190 properties sold for over $10 million, outpacing New York (130) and Miami (102).

Despite rising prices, Dubai remains one of the most profitable luxury real estate markets worldwide. For example, you can purchase approximately 980 square meters of premium residential space in Dubai for $1 million, compared to just 366 in New York or 355 in London.

Acquiring real estate in Dubai: Steps for foreigners

Dubai offers a particularly welcoming environment for foreign investors. Property purchases are made in full ownership (freehold) in designated areas without needing a local sponsor or prior residency. This open policy is part of the emirate’s strategy to attract international investments.

Required documents and procedures

To purchase property in Dubai, you will need the following documents:

• Passport and visa;
• Proof of income;
• Recent bank statements;
• Developer’s no-objection certificate;
• Purchase contract;
• Proof of payment.

Registration fees with the Dubai Land Department (DLD) amount to 4% of the purchase price. Notably, local banks offer financing options to foreigners, with terms varying based on residency status and credit history.

Where should you invest in property in Dubai?

Choosing the right neighborhood is crucial for a successful real estate investment. Downtown Dubai and Palm Jumeirah lead in luxury, while Dubai Marina and Jumeirah Beach are popular among foreign professionals and other expats. Emerging areas like Dubai Hills Estate and Dubai Creek Harbour are gaining attractivity due to their modern infrastructure and growth potential.

Price ranges

Property prices in Dubai vary significantly across neighborhoods:

• Jumeirah Golf Estate and Arabian Ranches: 1,845 – 2,070 AED/m² (492 – 552 USD/m²)
• Dubai Hills: 1,620 – 2,070 AED/m² (432 – 552 USD/m²)
• Emirates Hills and Palm Jumeirah: 2,565 – 5,355 AED/m² (684 – 1,428 USD/m²)

The average price for a property in Dubai is around USD 760,000, but this can fluctuate based on location, construction progress, living space, and amenities offered.

Financial and tax aspects

One of the main advantages of Dubai’s market is its high rental yields, ranging between 5 and 8%. According to Hindustan Times, these rates are nearly twice those of major Indian cities, explaining the growing allure for international investors.

Significant tax benefits

Dubai is notable for its beneficial tax policies: no personal income tax or capital gains tax. This favorable tax environment is a strong argument for investors who are used to higher taxes in their home countries.

The Golden Visa: An additional perk

Real estate investment makes you eligible for the “Golden Visa,” a renewable long-term residence visa lasting 5 to 10 years, with a minimum investment of 2 million dirhams (about USD 544,000). This program offers significant benefits, allowing you to live, work, and study in the UAE.

Dubai’s property market evolution

Dubai’s real estate market continues to grow, with residential values increasing by 21.3% year-on-year in the second quarter of 2024. It retains its vitality with over 261,000 units under construction expected by 2029.

Emerging market trends

The market for off-plan properties is gaining popularity in Dubai. In 2023, the city recorded 57,360 transactions for off-plan properties, marking a 48% increase from 2022. Attractive payment plans and flexible financing options offered by developers make premium properties more accessible.

The impact of infrastructure development

Ongoing infrastructure development enhances Dubai’s real estate market attractiveness. The Ministry of Energy and Infrastructure has implemented 129 development projects worth approximately 11.8 billion dirhams under its five-year plan (2018-2023), boosting property demand and value.

Things to consider before purchasing property in Dubai

It’s crucial to:

• Verify the developer’s history and reputation;
• Review neighborhood development plans;
• Analyze price trends over several years;
• Examine condominium fees and maintenance costs;
• Ensure the property is in a freehold zone open to foreigners.

Timing your purchase

While Dubai’s real estate market is generally on the rise, seasonal variations can present negotiation opportunities during quieter summer periods. It’s also wise to keep an eye on new project launches, which often come with attractive promotional offers.

Legal considerations

Although the acquisition process in Dubai is relatively straightforward, it’s important to:

• Verify property titles with the DLD;
• Ensure contracts comply with local regulations;
• Understand the rights and obligations as a foreign owner;
• Check conditions specific to off-plan properties.

Rental investment is a winning strategy

For foreign investors looking to rent out their properties, Dubai offers a vibrant rental market with clear regulatory frameworks, standardized contracts, and efficient dispute resolution processes. Property owners can manage rentals directly or through professional property management firms.

Lucrative rental segments

Dubai’s rental market is segmented into various sectors, each offering specific opportunities:

• High-end residential for wealthy international clients;
• Medium-sized apartments for expatriate professionals;
• Seasonal rentals for luxury tourism;
• Offices and commercial spaces in business districts.

Conclusion

Investing in real estate in Dubai offers a unique opportunity in a mature and dynamic market. The combination of favorable taxation, high returns, and a legal framework welcoming to foreigners makes it a prime destination for international investors. The city continues to grow and innovate, presenting significant growth potential for the years ahead.

However, like any real estate investment, a methodical and thoughtful approach is essential to maximize your investment in the emirate. Success hinges on a thorough understanding of the local market, strategic location selection, and an investment strategy aligned with your personal goals. Contact Magellan’s team for more information about property purchase and prepare your move to Dubai in 2025!

Sources for this article:

A Guide to Finding The Best Investment Properties for Sale in UAE (2025) – finance-monthly.com

Looking to buy real estate in Dubai? Here’s all that you should know – hindustantimes.com