Purchasing real estate in the UAE is an attractive opportunity for foreign investors due to the country’s tax benefits, stable economy, and high rental yields. However, there are several important factors to consider before making a decision.
One interesting aspect is the difference between freehold and leasehold ownership. In freehold areas, foreigners can own property outright, while leasehold agreements grant long-term leases (often up to 99 years). Dubai and Abu Dhabi have designated freehold zones, such as Dubai Marina and Yas Island, where international buyers can acquire full ownership.
Another key point is financing. While some investors pay in cash, mortgages are also available for non-residents, though with stricter conditions. Interest rates and loan terms vary, so comparing banks is essential. Additionally, transaction costs (like registration fees and agent commissions) can add 5-7% to the purchase price.
Finally, understanding local laws is crucial. While the UAE offers investor-friendly policies, regulations can differ by emirate. For example, Dubai has the Real Estate Regulatory Agency (RERA), which protects buyers' rights.
For a deeper dive into the UAE property market, you can explore more resources on Emirates.Estate .