In Q2 and Q3 of 2024, Americans ranked among the top ten nationalities purchasing real estate in Dubai, completing 575 realty transactions. Curiously, a more recent Betterhomes report indicates that the buyer profile mostly comprises investors, who account for 63% of transactions, while end-users make up 37%.

Moreover, the report highlights that the UAE economy is thriving as the International Monetary Fund projects GDP growth to reach 4.2% by 2025, outpacing the global average of 3%. This increase is driven by the non-oil sector, which accounts for over 70% of the country’s economic growth.

To boot, as of mid-December 2024, Dubai has recorded over 161,040 real estate sales involving land plots, individual buildings, and apartments since the beginning of the year. Let’s now clarify a few key considerations for U.S. buyers to navigate real estate ownership aspects that are unique to Dubai.

Overview of the Dubai Real Estate Market

In the UAE, foreign investors can purchase and own realty without restrictions in designated freehold areas, allowing complete ownership of the real estate and land. The ownership rights, coming with the purchase of residential and commercial properties in a freehold area, cover the full list: the ability to sell, rent, or gift the unit or land plot. However, outside freehold zones, full ownership is often limited to UAE nationals.

The legal framework governing real estate transactions and registration is overseen by the Dubai Land Department (DLD). Specific local laws include, to name a few, the necessity of obtaining a Memorandum of Understanding, No Objection Certificate, and title deed.

In addition, foreign nationals who own real estate in Dubai can apply for a UAE residence visa. Various options are available, including long-term visas that can facilitate your stay in the UAE. A resident visa is granted upon full ownership of realty valued at AED 750,000 (around $204,193). The golden resident visa is available for longer periods—for up to ten years with possible extension (for properties in Dubai worth at least 2 million AED or $544,515).

Can U.S. Investors Buy Real Estate in Dubai?

Yes, sure! A U.S. investor can purchase realty not only for such benefits as safe investment and rental income but also to capitalize on the growing market. One significant advantage is that many developers in Dubai offer interest-free installment plans that differ significantly from traditional mortgage financing in the U.S.

For instance, a typical installment plan requires a payment structure of 20% upon booking, 50% during construction, and 30% upon completion and handover—all interest-free. Some developers may even split final payments into smaller installments, such as 5% or 7%, to be paid after handover.

The amount to pay in each installment may differ in various projects by the same developer. To learn about the most lucrative offers, drop us a message in the chat.

Mortgages are also available, but the terms and required documentation vary from bank to bank.

It is worth noting that Dubai offers generally lower real estate prices than those in the United States, and returns on investment are among the highest in the world, averaging 7-8%. A 429-square-foot studio can cost as little as $130,780, while two-bedroom apartments start from $222,895.

Tax Benefits of Investing in Dubai Real Estate

Investing in realty in Dubai offers significant tax advantages. If you purchase real estate as an individual rather than as a business representative, you will not incur taxes when selling or simply owning it. Meaning: realty in Dubai is tax-free and there is no annual fee.

The only cost incurred by buyers is a one-time transfer fee paid at the time of purchase—typically around 4% of the real estate’s value.

Types of Properties Available

There are no legal restrictions on the types of properties that foreigners can purchase. The only requirement is that the real estate should be located within a freehold area.

This means you can buy various types of realty including apartments, villas, townhouses, penthouses, duplexes, commercial spaces, and even land plots.

Where to Buy Real Estate in Dubai

Dubai was the first emirate to offer realty ownership to non-Emiratis, and it is now witnessing the highest future residential supply in freehold areas (over 70%).

The city is a culturally diverse community, where people from various backgrounds coexist peacefully. And while certain areas are particularly favored by expatriates from specific countries, overall, the community is multinational, using English as the primary language.

Many recent developments have garnered interest from U.S. and British buyers. Some prefer investing in tourist-populated Dubai areas, while others seek more secluded, private communities in the suburbs. Among the most popular neighborhoods with our U.S. clients are:

Jumeirah Village Circle (JVC)

Affordable, lively, and with family-friendly amenities, JVC has experienced significant demand this year, especially among buyers looking for larger living spaces.

Westwood Grande 2, Stonehenge Residences, V1ter Residence, Hadley Heights, 1WOOD Residence, and Binghatti Grove offer units for sale now, with areas ranging from studios to spacious multi-bedroom homes.

Mohammed Bin Rashid Al Maktoum City (MBR City)

One of Dubai’s premier locations, MBR City offers an abundant selection of already completed properties: apartments at Azizi Riviera Reve starting from $877,230, spacious townhouses at Elie Saab Vie with prices from $945,000, or even affordable 1-bedroom flats at Azizi Riviera, priced about $272,000.

Dubai Silicon Oasis

Home to the Rochester Institute of Technology (RIT) campus, this neighborhood has recorded rental yields exceeding 9% this year.

Projects are quickly sold out here; currently for sale is Oasiz, with prices starting at $209,250. Please contact us for yet-unpublished developments in the presale stage.

Jumeirah Lake Towers

In Q2 of 2024, the neighborhood saw a 39% price surge and an 8.2% ROI. The average annual rent is AED 119,543 (around $32,546).

In-demand projects are Viewz Residence, Upper House, and Sobha Verde. All three are under development with completion deadlines in 2026.

Dubai Harbour

This marina district, with Arabian Sea views and yachts drifting by the shore, is great for living and investing. Why? First, just across the bay is Dubai Marina, but Dubai Harbour’s real estate prices are more appealing.

Second, the neighboring Dubai Media City is home to the American University campus, the oldest and most esteemed American university in the UAE. AUD offers undergraduate and graduate programs and is accredited by the Southern Association of Colleges and Schools.

Upcoming projects, set for completion in 2027 and 2028, include Damac Bay 2 by Cavalli priced at $945,000 and Skycrest Collection starting from $850,230 for a unit.

These communities account for the highest number of off-plan, under-construction, projects as Dubai expands under its 2040 Urban Master Plan.

Buying Process Step by Step

1. Research the Market

Understand the Dubai real estate market, its realty types, neighborhoods, and pricing trends. Consider your specific requirements and needs. If you are a first-time realty buyer, we recommend writing them down so that you don’t miss anything important.

2. Determine Your Budget

Establish a budget that accounts for not only the purchase price but also extra fees such as title deed registration and maintenance costs. Don’t forget about financing options: Will you pay in one upfront payment or installments? If the latter, then what installment plan would you prefer?

3. Select the Real Estate

Visit potential properties if they are completed or review other projects by your chosen developer if the selected unit is still under construction. Evaluate them based on your needs and goals. Hire an agent from a reputable company if you fear making a mistake or need to close the deal remotely.

4. Pay the Deposit

Secure your real estate by paying a booking deposit.

5. Sign the Sales and Purchase Agreement (SPA)

Review all clauses before signing your sales agreement and paying the down payment and required DLD fees.

6. Receive Your Title Deed

The real estate must be registered in your name with the DLD to confirm you are its legal owner.

Common Pitfalls and How to Avoid Them

What may go wrong when buying real estate abroad? Well, one can:

misidentify the neighborhood,
select an unreliable developer,
underestimate the importance of due diligence and legal assistance. While much of the transaction process has been digitalized in Dubai, SPAs still require expert review.

To facilitate your investment journey—whether you’re looking for real estate for personal use or rental income—we offer remote transactions. We can designate a specific assistant for you who will complete the deal from start to finish: from compiling a tailored list of properties to handing you over the title deed and Emirates ID.

Investors looking for a reliable, licensed realty broker in Dubai recognize Top Address as an experienced UAE real estate partner and dealmaker.

In case you want to consider other UAE realty options, we recommend checking out the real estate market in Sharjah where prices are more affordable and communities are more family-oriented.

A Guide for U.S. Citizens Buying Real Estate in Dubai