Dubai as a Prime Destination for Canadian Property Investors and Expats

In 2024 alone, a number of high-profile Canadian officials visited Dubai with missions on diverse subjects. Among them were the Honourable Mélanie Joly, Minister of Foreign Affairs; the Honourable Ahmed Hussen, Minister of International Development; Alberta Technology Minister Nate Glubish and Justice Minister Mickey Amery. The purposes of their visits ranged from humanitarian assistance discussions to international technology and innovation cooperation.

While the latest official number of Canadian expats living in Dubai, which counts 45,000, dates back to 2016, a growing interest in local property and business opportunities is evident. There are several reasons for that:

• Dubai has no personal income tax, capital gains tax, or property taxes.
• Local laws allow 100% foreign ownership of onshore companies across various sectors.
• There is a ten-year “Blue Visa” for individuals who have contributed markedly to protecting the environment. This initiative recognizes the importance of sustainability, green business practices, and clean technology to foster a greener future.

Moreover, Dubai is an international economic and entrepreneurship hub, with year-round conferences and expos, regular direct flights to every corner of the world, and English as the preferred language of both business and everyday communication.

Now onto why buying property in Dubai is so popular among Canadians:

Advantages of Buying Property in Dubai

Affordability Compared to Canadian Markets

Property prices in Dubai are so affordable that they allow Canadians to enter the market with less capital while still acquiring high-quality properties.

Canadian buyers looking for investment opportunities or second homes often prefer Dubai to, for example, Toronto, because the quality of property and life in Dubai is higher than in Toronto for similarly priced units due to luxury amenities.

High Rental Yields

Dubai offers some of the best rental yields globally, reaching up to 13%. This is significantly higher than data from Canadian markets (5.10%).

Besides strong returns on investments, Canadian investors benefit from predictable and robust capital appreciation due to a resilient market and a healthy national economy.

Well-Being in the Spotlight

Freshly introduced Quality of Life Strategy 2033 aims to transform residential communities into 20-minute cities with all essential social infrastructure easily accessible. The strategy focuses on ten pillars: culture, environment, urban planning, mobility, society, economy, employment, education, safety, and health.

Within three phases from 2024 to 2033, it will establish Dubai as one of the world’s best cities for quality of life and provide residents with a healthy, active, and enjoyable lifestyle.

Streamlined Buying Process

The process for purchasing property in Dubai is straightforward. Firstly, Dubai’s property law is governed by the Real Estate Regulatory Agency (RERA), which oversees local real estate transactions.

Secondly, to promote transparency and protect buyers’ rights, RERA and Dubai Land Department (DLD) employ centralized registration ensuring legal recognition of ownership rights. And finally, most of the process is digitalized and safely encrypted.

Strong Canadian Dollar

The strength of the Canadian dollar against the UAE Dirham allows Canadian investors to stretch their purchasing power further in Dubai compared to other Western markets.

Just compare: CAD 785,166 equals AED 2,000,000, which is the required property investment amount for the ten-year Golden visa in Dubai.

The same amount of CAD equals SGD 740,590, which is below the requirements of the Global Investor Programme for a permanent visa in Singapore—another developed country with an advanced economy and focus on technology.

Golden Visa Benefits

The UAE offers a ten-year Golden Visa with an extension opportunity for property investments of AED 2 million (CAD 785,166 as of the end of 2024).

The visa allows property owners to sponsor family members and live, work, and study in the UAE freely. Additionally, it provides access to quality healthcare.

Freehold Neighbourhoods in Dubai That Are Popular Among Canadians

While the Dubai government distinguishes between freehold and leasehold properties, it allows foreigners to purchase only those with freehold titles. Due to this distinction, certain areas in Dubai are leasehold, and foreign investors mainly focus their attention on freehold ones.

Luckily for the buyers, freehold areas are the most desirable communities with landmark-shaped skylines.

Downtown Dubai

Would you like to live opulently and with access to cultural attractions and high-end retail? Downtown Dubai at your service. Also, properties here offer impressive rental yields due to their popularity among professionals and tourists.

For example, in the third quarter of 2024, the average annual rental prices in the neighbourhood stood at AED 153,783 (around CAD 60,372). The most lavish amenities and upscale units in Downtown Dubai are now for sale in Elegance Tower, Volta, and Mercedes Benz Places.

Palm Jumeirah

This exclusive island offers breathtaking vistas of the Arabian Gulf, appealing to Canadians seeking high-end living. The area has consistently shown strong demand and property value appreciation. In the third quarter of 2024, year-on-year price growth reached 14.1%.

While off-plan developments, such as The Palm Beach Tower 3, are increasingly gaining traction, completed apartment projects like Mansio at The8 and The Palm Gateway also attract a substantial number of leads.

Business Bay

With its proximity to Downtown Dubai, its modern architecture and lively environment, Business Bay is a favourite among young professionals from all over the world.

One by Binghatti, The Crestmark, and One River Point are three newly launched condominiums currently under construction. Majestine has already been completed, but some property listings are still available. We recommend contacting our agents to confirm their validity.

Step-by-Step Guide for Buying Real Estate in Dubai as a Canadian Citizen

Below are essential steps to navigate the purchasing process effectively:

1. Define Your Investment Strategy or Purchasing Goals

Decide between apartments, villas, or townhouses based on needs and budget.

For those looking to invest in rental properties in Dubai, managing these assets from Canada can seem difficult. For such investors, some developers offer management services for purchased units, covering cleaning, maintenance, and tenant relations.

Whether you are buying for personal use, rental income, or investment purposes, consider hiring a licensed real estate agent to get the job done. At Top Address, we appoint a personal assistant to guide you through the deal or even represent you in-country so that you can handle the purchase remotely.

2. Explore Financing Options

Whether you want to pay in full or seek financing, note that all developers in Dubai offer interest-free installment plans. You are eligible even if you are not a resident of the UAE.

Developers ask for a 10% down payment when you book an apartment or house for further purchase. However, ensuing installments are evenly spread within one or two years while the condo or complex is erected. Some developers even offer post-handover instalment plans.

3. Sign a Memorandum of Understanding (MOU)

Once you find a suitable property and the developer confirms it is still available, you will need to sign an MOU outlining the terms of the sale, including price and payment schedule.

Note that MOU isn’t a conditional offer. In fact, conditional offers are uncommon in Dubai’s property market. MOUs serve as preliminary agreements that set the stage for formal contracts and are typically non-binding for the buyer.

4. Complete Registration

Register your property with the Dubai Land Department and obtain the title deed. A one-time land registry fee of 4% of the property’s sale price is required as a closing cost, even if you choose the developer’s installment plan.

5. Budget for Additional Expenses

If your real estate is already completed, maintenance and utility fees may be applicable.

Challenges That You May Face as a Canadian Investor in Dubai

Many Canadian investors considering Dubai as an investment destination are challenged by the distance between the two continents. With nonstop flights taking over 14 hours from Toronto and 16 hours from Vancouver along with a time difference of 9 to 12 hours, one is inclined to think that burning the midnight oil isn’t worth it.

Meanwhile, global real estate performance reports highlight Dubai’s leading position in the race. In 2024, residential prices in Dubai surged by 16.5% year-on-year, beating New York, Sydney, Toronto, and London.

To assist investors from Canada, Top Address agents offer tailored services and consultations. As our clients confirm, virtual property tours are invaluable when deciding on purchases from abroad.

For those looking to relocate to Dubai to start a company, business registration may pose another roadblock. If you’re unsure about which form of company registration to choose, we advise seeking legal counsel from our agents.

Contact us via chat or call to get professional advice from licensed real estate brokers in Dubai and ensure a smooth transaction and an excellent investment asset!