Money Saving Tips :: Residential Properties in Dubai
Residential Properties in Dubai: Residential Properties and Foreign Ownership in Dubai
Foreign residents can own residential properties in Dubai, but they need to be prepared to navigate the Dubai real estate laws, investment rules, tax restrictions and other laws governing the country's property.
If you're a foreign resident of Dubai or the United Arab Emirates and considering purchasing residential property in the area, keep reading for an overview of the system and some tips and tricks that can help you navigate it.
Law Number 7
In March 2006, the government implemented the Real Property Registration Law Number 7, a new property law that allowed foreigners to purchase and own freehold rights to residential properties in Dubai.
Prior to this law, foreigners were forced to enter into long-term contracts with developers, but held little actual ownership rights over their properties or condo units. Now, freehold owners can benefit from their property increasing in value and even rent it out.
The Freehold Rule
Foreign freehold ownership of residential properties in Dubai means property owners may be limited in what they can do with the property. They may be held to a commitment to maintain the current building, pay a maintenance fee like a condo fee or concede easements to their neighbors, like the right to use a lane way or driveway.
Other properties, mostly condo units, are available on 99-year leaseholds, meaning buyers can use the property for a period not exceeding 99 years.
Understanding Inheritance and Shariah Law
If you intend to put your freehold Dubai residential property in your will, understand that Shariah Law does not recognize wills and your property may not necessarily pass automatically to your wife. Most foreign residents either purchase their Dubai homes through an offshore company or having an after-death apparatus set up that will purchase the home through an offshore structure and then include it as part of your estate.
Residence Visa Renewals
There are no property taxes in Dubai, however foreign residents will need to pay for their residence visa renewal every 3 years. It currently costs $1360 US Dollars to renew, but doesn't allow the permit holder to work.
Prices in Dubai
The real estate market in Dubai is booming, meaning prices are on the rise and the time to invest is now. The average price for Dubai real estate is approximately $1000 per square meter, a fraction of the costs that can be found in London or New York.
Popular Areas for Residential Properties in Dubai
The most popular areas where foreigners are buying up residential properties in Dubai include The Greens, The Springs, Emirates Hills, the Dubai Marina Project, the Arabian Ranches and, of course, the infamous Palm islands.
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HomePropertyTips.com :: Residential Properties in Dubai