A unique country of seven small emirates was founded in 1971. Sometimes people also say that the UAE consists of states or principalities creating a federation. The most popular emirates are Dubai and Abu Dhabi. Although Abu Dhabi is the capital of the UAE, most people prefer to live and invest in Dubai. The other five emirates are Ajman, Fujairah, Ras Al Khaimah, Sharjah, and Umm Al Quwain. The Arab Emirates is located in the Persian Gulf and borders Saudi Arabia to the south.
A solid number of investors prefer to invest in Abu Dhabi and Dubai because of the more developed infrastructure, higher investment return, and better business opportunities. Properties for sale in the UAE is at the top of the most beneficial investments. The buyers are free to choose either an already finished housing option or a project under construction, which expands the boundaries of choice.
The legal system of buying real estate in the UAE
Generally speaking, the government of the UAE has not established any specific rules and terms for buying properties. The process of a deal consists of the same stages as in any other country. However, some emirates have difficulties in off-plan properties for sale. They lack any legislation that would regulate the purchase of real estate even before its construction, the activities of real estate brokers and agents, the deposit of accounts for these purposes, and the issuance of certificates of ownership in apartment buildings and properties with common areas.
Investing in different emirates of the UAE
1 Investing in Dubai real estate
According to the law of the emirate, which came out in 2006, foreigners are allowed to buy real estate in free-hold zones. Most of these areas have quite popular names. As new areas allowed for foreign ownership may appear from time to time, you should always check the lists of properties when intending to invest in Dubai. The lists are available on the Dubai Land Department website. Nowadays, the emirate provides more than 52 free-hold zones.
2 Investing in Abu Dhabi
Abu Dhabi government allows foreigners to invest in properties in certain areas of the city. They identify investment zones and attract foreigners to buy properties there. However, if you purchase a property in the zone, it does not mean you own a piece of land. There is no such law in Abu Dhabi. One more important thing to know is the introduction of freehold investment zones. They substituted the law of lizgoold agreements with a 99-year lease.
3 Investing in Ras Al Khaimah
Since 2005 foreign investors have been allowed to purchase real estate in freehold zones in the city. Before issuing the law, some difficulties existed. First, you had to register the company in a certain area and only then buy a property in its name. The introduction of freehold zones opened Ras Al Khaimah`s real estate to the world.
4 Investing in Ajman
Ajman is one of the most closed emirates with strict rules towards foreigners. The year 2008 introduced a law that allows UAE citizens, citizens of the Gulf Cooperation Council countries, and wholly-owned companies and publicly traded companies to own freehold properties and plots of land. Personal property is available in freehold zones for ownership and for a long-term lease.
5 Investing in Sharjah
Sharjah provides only lisgoold options for foreigners. They have the right to rent real estate for 99 years but no to become an owner of a house.
6 Investing in Fujairah
Fujairah does not allow foreign investors to purchase real estate. Moreover, lisgoold options are absent as well.
7 Investing in Umm Al Quwain
The government of Umm Al Quwain issued the law about the right of UAE citizens and citizens of the Gulf Cooperation Council countries and wholly-owned companies to own real estate. Foreigners are free to choose the desired house in an investment area. However, they cannot buy a piece of land. They are also allowed to use the property on a long-term lease for up to 99 years or to use a 50-year lease with a commitment to developing the property.
The final word
The UAE has no federal law or strict regulation on how foreigners can become property owners. To purchase a necessary home, explore different locations, identify the differences between the emirates, and choose the best one. Then visit the Emirates.Estate and find a premium apartment or a villa in the desired area.