Despite the country’s reputation as a popular property destination, the number of foreign buyers who are looking to purchase a property in the UAE has increased significantly over the past couple of years. There are a wide range of options that people can choose from when it comes to buying a home.
According to a report released by UBS, the global real estate bubble is growing stronger the prices are out of sync with the increase in interest rates. The study was conducted in 25 major cities such as Dubai, London, Singapore, Toronto, New York, Zurich and more.
However, there are some challenges that come with buying property in the UAE as an international buyer. For instance, under the Mortgage Cap law, non-UAE nationals are required to have a down payment of at least 25% of the property value. This goes up to 35% for properties worth over AED 5 million. If you’re planning on investing in multiple properties, you’ll also need to have at least 40% of the value to cover your down payment.
To ensure that their market is stable and compliant with the regulations, some local banks and mortgage providers in Abu Dhabi and Dubai have started offering mortgages to non-EU nationals who are looking to purchase property in these regions. These mortgages allow them to borrow up to 80%-85% of the purchase price.
Some banks in the UAE have also started to lower their interest rates in order to make it easier for property buyers to get a better deal.
According to the Dubai Law, if you are a foreign national who is not currently residing in the UAE, can buy a property for commercial or residential purposes in over 60 freehold areas designated by the DLD (Dubai Land Department), including some of the most prominent areas such as Palm Jumeirah, Emirates Hills, Dubai Marina, and Business Bay.
Owners has full authority to buy, rent, or invest in the property or the land that lies on it. Buyers in the UAE can enjoy a tax-free environment when it comes to buying property. The UAE government established a tax system that supports a no-tax concept.
Foreigners can also enjoy a tax-free environment when it comes to investing in Dubai real estate market. This makes the country an attractive investment destination.
Getting a mortgage in Dubai can be relatively easy if you meet the bank’s eligibility criteria. Before you start looking for a property, make sure that you have a pre-approval from a financial institution.
The UAE has been working hard to provide its citizens with the best possible financial services. This mission has also extended to non-resident residents. The country is now one of the most welcoming places in the world for international buyers.
