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Which countries are the easiest for foreigners to acquire real estate?

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Overseas property investment demands that investors navigate financial systems correctly. This way, making a real estate investment in another country may work differently when compared to your country of origin. As the property laws and real estate transactions vary by country. Therefore, when investing offshore, you have to be well informed on the best places to purchase property as a foreigner.

In this article, we will explore the most friendly and less demanding countries towards foreign investment, with the UAE being one of them. We will cover points suchlike the factors you have to consider, steps to follow, and the communities with the best assets.

1. What are the top-picked countries for foreign investors to buy real estate?

2. Why you should contemplate the option of buying property in the UAE?

3. Which aspects do you have to consider when buying property in the UAE?

4. What is the procedure to buy property in Dubai as a foreigner?

5. How can you purchase real estate in the UAE with a mortgage nowadays?

6. Where are the best hotspots to acquire buy-to-let property in the UAE?

7. How can Connect Property help you purchase a property in Dubai easier?

1. What are the top-picked countries for foreign investors to buy real estate?

With the overseas property market on the rise, now is a great time to invest in real estate. Foreign property distinguishes itself within investment options since it brings diversification of asset class and potential currency. Whether it is your first time buying overseas or you wish to expand current foreign property holdings, you should look into the top countries among overseas investors to purchase property:

1.1. United Arab Emirates

The UAE is a tax-friendly country and highly welcoming of foreign property investment. Foreign real estate buyers have an immense variety of properties, in which they can invest. Besides, they can benefit from a lease yield of 5.19%, among the highest.

1.2. Argentina

The Argentinian real estate market is open to all as there are no restrictions regarding foreign ownership of property. This way, foreign investors have equal rights in this respect as nationals. However, in Argentine land close to an international border, additional paperwork is vital.

1.3. Belize

This real estate market is pretty unregulated, but there are a few restrictions. If non-local desires to purchase property, it is obligatory the formal authorization of the government from the Ministry of Natural Resources. There are some coastal areas restricted that demand municipal approbation for freehold sale.

1.4. Bulgaria

While there are no prohibitions for foreigners wanting to buy buildings in Bulgaria, there are limits on land acquisition. It is possible to legally circumvent this by establishing a Bulgarian company and purchasing the land through the corporation.

1.5. Brazil

Non-locals can purchase property of almost any type in Brazil and enjoy similar rights in this regard as natives. In addition, there are solely restrictions for foreign property ownership located adjacent to the coast, foreign borders, or areas of national security.

2. Why you should contemplate the option of buying property in the UAE? 

The UAE has become a popular location among local and foreign property investors because of its safe status. There are numerous reasons that incentivize first-time and seasoned real estate buyers to invest, such as lower interest rates and appealing payment plans. Several home buyers are likely to opt for ready properties. They should consider, as well, buying UAE off-plan properties, which are more cost-effective and offer flexible post-handover installment plans.

Since emirates like Dubai opened up to foreign property investors, the real estate market experienced a boost after. Foreigners do not have any hassle when purchasing commercial property or residential property. It is noteworthy to mention that certain approvals and licenses are imperative based on the industry you operate in. Over the past years, the UAE government has introduced numerous foreign-friendly policies. Overseas investors can apply for long-term residency visas, the right to own in its entirety a business in free zones, and own freehold property. 

Many experts stated that the buyer’s confidence in investing in Dubai had improved due to lower interest rates. Besides, two-thirds of property investors have decided to take more risks to achieve greater returns. The key drivers of UAE’s economy are tourism, real estate, transport, and financial services, as the country benefits significantly because of its geographical position in the Middle East. Additionally, along with the solid growth in the services sectors and foreign corporations setting up offices. The demand for purchasing commercial property in the country is even higher.

On the other hand, the demand for UAE real estate has shifted to end-users and long-term investors. The government keeps launching initiatives to increase market transparency and the profitability of investments. Thus, the developers and the government have supported real estate buyers and investors. 

3. Which aspects do you have to consider when buying property in the UAE?

The UAE’s property market is quite buyer-friendly at this moment. As a result, the country is becoming less of a temporary lifestyle destination and more of a location where many people want to establish themselves. If you are looking to purchase property in the UAE, there are a few aspects you have to consider.

3.1. Choose a property that fits your budget

One of the most important things you will need to do is evaluate how much you are willing to pay. Therefore, you have to think about the monthly mortgage repayments once you have acquired the property.

3.2. Location and size

Whether you purchase a property to live or rent, your ROI will depend on where the property is and its size. Every property has its advantages and drawbacks and can qualify as a potentially good investment. For example, you can consider the properties available in JVC for incredible investment opportunities. Once your search is limited based on your preferences for a specific community, find a real estate agent with knowledge in that area.

3.3. Prepare for upfront costs

When you have decided on the property you will purchase, budget for the initial costs. These costs include the down payment, land transfer fees, admin fees, property maintenance charges, connection fees for water and electricity authorities, mortgage fees, and the broker commission.

4. What is the procedure to buy property in Dubai as a foreigner?

With a sound property market and rising rents, purchasing commercial property and residential property is a steadily attractive option for foreigners in Dubai. The Dubai real estate market is very different when compared to the other markets in the world. For that reason, it is essential to contact a proficient agent to guide you through the whole purchasing process.

If you have plans to buy property in Dubai, you will have to evaluate the purpose behind your buy. Acquiring a unit to move into is, by no means, the same as buying it as an investment. For instance, if you purchase real estate for investment purposes, you will eventually rent out the property. Besides, you will need to do extensive research to find the property that offers the highest rental yield. You also need to be over 21 years of age to purchase commercial property or residential property in Dubai.

The first buying property step involves making a verbal offer to the seller. As soon as the seller accepts the offer, the next step will be preparing a preliminary version of the formal contract. Subsequently, the buyer has to make a deposit and obtain financing. The seller will make sure that all the terms and conditions are included in the contract. The buyer will make the final payment, or in the case of mortgages, the payment plan concludes, and the transfer of the property ownership takes place. Although, the process can differ, in some measure, depending on whether you purchase off-plan property or a resale property from a private seller.

5. How can you purchase real estate in the UAE with a mortgage nowadays?

For foreigners who want to purchase a property in the UAE is not obligatory to pay the total price at the time of the acquisition. A local financial institution can help by issuing a home loan for residents and foreign purchasers.

Nowadays, the mortgage lending market is increasingly popular in Dubai. As a matter of fact, the notoriety of selling and buying houses by installments has doubled since 2016. However, it can be challenging to get a mortgage loan if they do not qualify. The UAE banks have, in general, the following prerequisites for foreigners:

  • The individual must be at least 21 years old at the time of signing the contract. Besides, each bank establishes an upper age limit. It is less probable for lenders beyond the age of 55 to secure a mortgage.
  • The lender hast to commit to obtaining life insurance. The cost of the insurance is about 0.3% of the loan amount.
  • The bank can issue a mortgage to a foreigner at a rate of 6.5% to 9.5% annually.
  • The period for which the financial institution issues the home loan cannot be less than 5 years or more than 25 years.
  • The mortgage amount does not have to surpass the 90%of the cost of the acquired property.

A UAE bank will make its decision within 90 days. Then, the investor will have to register the property transaction with the UAE Land Department. In addition, the lawyers of both parties can attend the registration with the condition that the notary office issues a Power of Attorney.

6. Where are the best hotspots to acquire buy-to-let property in the UAE?

Buying an investment property is a popular option in the UAE, with the country providing healthy returns to investors. The pandemic impacted the market, though the region has found its way to manage to surpass the negative implications.

In addition, there are numerous great opportunities to enter the real estate market while the selling prices are attractive. Currently, the rents are on the rise, and it is a great time to invest in the UAE. In such a manner, investors are wondering where are the areas in which they can achieve the best rental yields if they purchase a buy-to-let property.

The Al Ghadeer community is an excellent development located on the border of Dubai and Abu Dhabi. It offers the highest net lease revenue of 8% in the UAE’s capital city. The rent for a studio apartment in this vibrant neighborhood starts from AED 22,000 and can go up to AED 43,000 for a two-bedroom apartment. Besides, it has experienced a lot more interest since the success of the Expo 2020 Dubai. Moreover, the housing project Al Reef in the outskirts of Abu Dhabi offers the second-highest net lease profit of 7.5%. It has gained huge popularity in the last years and saw a 4% increase in sales prices.

The residential community Discovery Gardens offers the highest gross rental yield in Dubai, with apartments averaging returns of more than 8%. In the second place is International City, offering an average gross lease yield of 8%. For this reason, buying a property to let in Dubai has never offered better value.

7. How can Connect Property help you purchase a property in Dubai easier?

Buying real estate is a splendid choice for investors, but it can be challenging at the same time. The main thing you may need is a team of professionals to guide you through every stage of the buying process. On Connect Property, we can help you purchase a property within your budget and per your necessities. 

With our website’s detailed listings and enhanced search features, you can find your ideal property in less time. In this way, any person can filter properties by their price, type, and other specific characteristics. We provide a secure space to facilitate the connection between property sellers and the potential buyers or advertise the property for rent. Additionally, we deliver satisfying experiences by providing the necessary 24-hour support for customers.

 

Would you like to purchase a property with no complications using Connect Property? Feel free to call us at +971 4331 6688 if you have any doubts regarding the procedure to buy a property in the UAE. Our representatives will also gladly help you if you send an email to contact@connectproperty.ae

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