photo credit: Brian Mc Morrow.

Dubai was the first emirate of the United Arab Emirates (UAE) to get involved in freehold real estate, at a time when UAE and GCC nationals were only permitted to own property in the United Arab Emirates. Buying real estate in the Emirates is slowly changing and becoming more available to expats. With the new freehold law now in place, there is little to stop anyone from investing into Dubai real estate.

History of Freehold Real Estate in Dubai.
In 2001, the Dubai government agreed to allow expats to have a 99-year lease of particular Dubai property, but in May 2002, the crown prince of Dubai, Sheikh Mohammed bin Rashid Al Maktoom, issued a decree allowing foreigners to buy property on freehold ownership. After Sheikh Maktoum's decree, this sparked the real estate boom in Dubai's residential property.

The purchase of property on freehold basis means that the property is put in the owner's name for life, and the owner has the right to sell, lease or rent his/her property at their own discretion. Property owners and their immediate family, will obtain renewable Dubai residence visas for life, which can cost Dhs. 5,000 per person. Freehold property in Dubai is currently limited to areas of Bur Dubai closest to the end of Dubai, where Dubai connects with Abu Dhabi. Some of these areas include Sheikh Zayed Road, Jumeirah, Jebel Ali, and Dubailand.

As you can see in the graph above, the UAE dirham (AED) has a fixed rate against the US dollar. Any changes in the US dollar are likely to affect the total price you'll pay for your new home. Be aware of this when using foreign currency to buy property. Of course, smart investors will also be able to use the currency fluctuations to their advantage, thereby lowering the total price to pay for their Dubai property. For more currency graphs, visit Yahoo! finance.

Moving to Dubai? Our quality selection of luxury rental apartments and villas are ready for you to move in today. For more information, check out the for rent in Dubai section.

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Who is eligible to apply for a UAE residence visa?
If the homeowner has no alternative means of sponsorship for a residence visa, the first owner may be sponsored by your master developer (Nakheel, Dubai Properties or Emaar) for residency in Dubai, UAE subject to the applicable immigration laws of the country.

The first named owner will not be entitled to sponsorship through the master developer, if he/she is eligible for an employment visa through their employer and/or have any business in Dubai or UAE. The sponsorship by the master developer does not entitle for employment or any other business activity in the UAE.

The owner has to apply through the master developer to have his/her case assessed for eligibility. To assess eligibility the owner needs to establish to the master developer that he/she is not eligible for any employment sponsorship and has no alternative means for sponsorship in UAE. Upon receiving this letter and the administration fee the master developer will review the application on an individual basis. This Residence Visa has to be renewed every 3 years and the maximum time one can be out of the country before the visa expires is 6 months. Administration & Immigration charges will apply.

The master developer does not provide visas for: Parents of the applicants, Sons over age of 18, Married daughters, House Maids of some nationalities, Drivers/Houseboys, Sisters and brothers of applicants, applicants on restricted list, (Iraq, Somalia, Yemen) applicants who do not pass the medical examination, husbands of women who have applied for residence visas as sole buyers.

How long does the Visa process take?
Visa Application: Approximately 10 – 12 working days for the visa to be issued. Visa Stamping: Approximately 5 – 7 working days for the passport to be stamped after the required documents are submitted once the Medical process is complete.

Kindly note that applications will be accepted only after all required documents are submitted. Visas cannot be processed earlier than indicated, so the applicant must ensure that he/she has enough time in Dubai to complete the process.

What is the procedure for obtaining visa in sales transfer cases?
Customers who purchase a property from previous owners against which a residence visa has been issued by the master developer will not be eligible until the visa of the previous owner is canceled. To illustrate:

1. Customer A purchases a unit.
2. Customer A applies for a Visa and the master developer sponsors his/her visa.
3. Customer A sells the unit to Customer B.
4. Customer B now wants to apply for a Visa.
5. Customer A must cancel his/her (and family's) visa first.
6. To cancel the visa, Customer A must submit his/her passport and sign on related forms.
7. NO REFUND is made to Customer A. Security Deposit (if applicable) can be refunded through Dubai Immigration.
8. Customer B may apply after Customer A has his/her visa duly cancelled. All normal fees apply.

(source: Emaar)