Dubai has changed the rules for selling properties to foreigners
Dubai authorities have approved new requirements for the sale of real estate to non-residents. All settlements will be made only through the owners of the objects.
Dubai has changed the rules for selling properties to foreigners.
Dubai has changed the rules for selling properties to foreigners.
Innovations have affected real estate transactions that foreign investors carried out with the help of third parties. Often, when selling an object, they could issue a power of attorney to a third party (an agent or relative), which gave him the right to receive payments from buyers. Now, this method is prohibited. Funds from the sale of an asset must go to the bank account of its owner, logos-pres.md reports with reference to RBC.
The new rules will affect several categories of owners. First of all, non-residents who own properties in Dubai but work remotely.
Second, foreign sellers who use offshore accounts or joint accounts and delegate authority to third parties. Thus, investors will need to open a local bank account to conduct transactions.
This will require a resident ID (Emirates-ID), which is only issued if you have a residence permit. The regulation of property sales to foreigners is part of a set of measures to combat money laundering and fraudulent schemes.
Foreigners typically invest in Dubai for passive income and capital gains. The top ten countries buying property in the UAE include (in ascending order): India, China, UK, Turkey, Iran, Russia, Saudi Arabia, Pakistan, France, UK, Turkey, Iran, USA. According to Property Finder, 2024 was a record year for the Dubai real estate market, with a total of 180,987 property sales and purchases worth AED 522.5 billion ($142.3 billion), an increase in both the number (36.5%) and value (27.2%) of transactions compared to the market's previous peak in 2023.
As noted by Sherif Sleiman, Chief Revenue Officer of Property Finder, last year was a defining year for the UAE real estate sector due to a record number and value of transactions, and it looks like this situation will continue in 2025.
“This is an exciting time for the industry as Dubai’s under-construction real estate market continues to grow. In a market eager for more trust and transparency, the Smart Rental Index recently launched by the Dubai Land Department is just one example of how the UAE is constantly striving to raise the bar,” he said.
Around 41,000 new housing units are expected to be delivered in 2025, but only around 5,000 of these will be villas and townhouses. This indicates a significant supply deficit in this highly sought-after sector.
