Buy Property In Abu Dhabi
Subsequently, in April 2019, the Abu Dhabi Government introduced a new law enabling freehold ownership of property for foreign nationals and presented three new visa types alongside long-term residency visas to facilitate the process.
buy property in abu dhabi
Abu Dhabi, the capital of the UAE, offers a lucrative opportunity for international property investors due to its booming demand and limited supply. Likewise, its favourable policies allowing for 100% foreign ownership and low tax rates make it an excellent place to do business and invest.
There is no hassle in purchasing a house in the city. The real estate market is transparent, and there is plenty of information available on online platforms. With the availability of many properties for sale in Abu Dhabi, you can find a property to buy quickly.
It will help if you go through the amendment to the Abu Dhabi Property Law in 2005. The amendment allowed Emiratis to buy and sell land(it was not allowed before) and created the concept of 'Investment Areas,' in which non-UAE nationals also can own property.
It is the most common type of property ownership in the city. According to Article 4(1) of the Purchase Law, the property buyer has the right to the property for 99 years. You can regard the ownership as a 99-year lease. It grants the buyer the ownership of the property and not to the land on which the property stands.
It allows the property buyer to use and exploit the land belonging to a third party, on which the property stands. Article 4(1) of the Property Law states that the right lasts for 50 years. The right is renewable and can be extended further up to 50 years, as per mutual consent or contractual agreement.
You can buy property in Abu Dhabi as a foreign national. You are likely to face some limitations in local mortgage options and a few connecting utility issues. Property purchase in Abu Dhabi cannot guarantee you a visa.
As already mentioned, the Investment Areas are the zones in Abu Dhabi where foreigners can purchase a property. Such areas are Saadiyat Island, Reem Island, Raha Beach, Yas Island, Al Reef, Hydra Village, and Al Ghadeer.
Additionally, there are a few more things to do beforehand. Finalize your budget, figuring out how much money you can spend on the property. If you want a loan for the purchase, make sure what amount you can borrow. You should keep ready a lump sum money because you will need at least 30 percent of the property price to get financing and paying other financing dues.
If you want to purchase a property in the city through a bank loan, you should acquaint yourself with the bank financing rules in Abu Dhabi. Before you approach a bank for a loan, find out whether it lends for purchasing a property in the Investment Areas.
If you buy your property from the secondary market, then you should pay two percent of the purchase price to register the property with the municipality. However, it is not applicable if you directly purchase the property from a developer.
The real estate market in the UAE is full of lucrative opportunities for property buyers. Given the tax-free rental yields and capital gains, UAE real estate attracts residential and non-residential investors. Furthermore, amendments in property laws of different emirates have opened doors to buying a property in the UAE as a foreigner (non-resident or expat).
Dubai has one of the flourishing and profitable real estate markets across the world. You can buy an apartment in Dubai or any other property in the areas designated as freehold. That said, expatriates get complete ownership of the property without any restrictions. There is no age limit to buying a property in Dubai as an expatriate and the Dubai Land Department issues the title deed to the investor.
According to Law no. 19 of 2005 regulating the real estate sector in Abu Dhabi, an expat can only buy a property in the form of apartments or floors in the Emirate and not the land. When buying an apartment in Abu Dhabi or any villa, expats need to be aware of the following types of systems:
This type allows the right to the property for 50 years. Expats can make alterations and changes in the property within the specified period. Moreover, the contract can be renewed upon the agreement between both parties for a similar period.
According to Article 3, residents or any legal person can own the property alongside non-nationals with a maximum 49% share in the public holding companies. Besides, the person allowed by the Abu Dhabi Crown Prince or the President of the Executive Council can buy the property in the Emirate.
Sharjah has allocated fewer freehold areas compared to Dubai and Abu Dhabi. Expats can not own a property in Sharjah, but they do have the right to usufruct for a maximum of 100 years after registering to the Sharjah Real Estate Registration Department (SRERD). Besides, expats have the freedom to buy property in the following designated freehold areas in Sharjah:
Buying a property in the UAE as an expat has certain benefits. For instance, the UAE is known for its no taxation systems. Moreover, you can yield tax-free income when you buy and rent houses in the UAE. Besides, investing in property in the emirates makes you eligible for a long-term residence visa.
Property is the most sought-after sector for local and foreign investors, pumping billions of dirhams every year to earn strong return on their investments. Over the years, Dubai has really streamlined its property buying process, spurring confidence especially among foreign investors looking to yield attractive returns.
Usually, a property transaction takes about four weeks, from the day the Agreement of Sale is signed. However, different variables can affect the timelines, such as the time of the year, the type of seller etc. For instance, a cash-to-cash transaction will always go faster than a mortgage-based transaction.
It depends on whether the buyer wants to do a cash deal or takes the mortgage route. In either case, there are certain fees and costs that come into play starting from getting the NOC from the developer. This is not a fixed sum and differs from developer to developer. The value can vary anywhere from Dh1,000 to Dh5,000 excluding 5 per cent value-added tax (VAT). Then you have the standard 2 per cent commission charged by the agents. DLD charges a flat 4 per cent fee of the property value in addition to Dh430 for land or Dh40 for an off-plan property. Then we have the trustee fees, which is Dh4,000 plus 5 per cent VAT for ready properties and Dh5,000 plus VAT for off-plan properties.
For off-plan purchases, an SPA (Sale & Purchase Agreement) is signed, which outlines the expected completion date of the property. Once the SPA is signed, an Oqood document is issued, which serves as a temporary registration till the time the buyer has the title deed in possession. The Oqood fee is typically 4 per cent of the purchase price. Once the property is ready, the Oqood becomes a title deed in the name of the new property owner.
In general, no. If the property is purchased off-plan, the connection of facilities takes place upon final payment and handover of the property. On the other hand, if property is purchased on the secondary market, the seller must clear all balances in order to receive an NOC from the developer before establishing a new connection.
Yes, down payments and payment plans vary significantly between developers. Payment plans for off-plan properties can range from monthly instalments during construction to 5 years after completion. Extended post-completion payment plans may eliminate the need for mortgages; however, pre-completion payment plans (generally 40-60 per cent of the total sales price) can be aggressive. First-time buyer mortgages typically require 20-25 per cent of the purchase price in equity. The number and rate of instalments are determined by the buyer's residency, the length of the mortgage, and the property value.
The UAE Cabinet updated the long-term visa regulations in April 2022, stating that a Golden Visa (10 years) can be obtained when purchasing a property for Dh2 million. The property can be off-plan or completed, and it can be mortgaged through specific local banks.
Both types of assets have advantages and disadvantages. Choosing between a ready-to-move-in property and an off-plan asset is a major decision and determining which is best for you is primarily influenced by the purpose of the investment and the financial benefits it provides. Consider the time it will take you to receive the property, the availability of funds, your preferred location, profitability, the developer's reputation, and the quality of other completed projects before making a decision. Choose the option that best meets your current needs, but most importantly, make sure the property you want to buy is being built by a reputable property developer.
The minimum age for purchasing a property is 21 years old, though a minor child may be represented in a purchase transaction by parents or a legal guardian. To sell a minor's property, however, a court order must first be obtained.
Emirates.Estate offers an exclusive range of the very latest property deals in the United Arab Emirates. We have collected the best property in Dubai and the UAE options from top developers and real estate agencies. With Emirates.Estate, you can easily find your dream home to live in or invest in. Our team verifies each property listing and our easy-to-use search filters will help you find properties for sale in the UAE for expats that perfectly match all your requirements in no time.
Renowned for their staggering skyscrapers and ultra-modern villa developments on the one hand and for traditional bustling bazaars and chic boutiques on the other hand, the UAE property market attracts many foreigners who are looking for something luxurious. Property choice in this country ranges from stylish apartments in luxurious high-rent-yield development projects to stunning villa projects and larger houses in the top neighborhoods. 041b061a72