How to Buy Property in Dubai from Canada?
Buying a property is one of the largest investments one makes in their lifetime. As proud of an action it is, one can’t deny the overwhelming sense of stress that is associated with it. It can be an extremely intimidating process and a taxing one, especially if you are doing it for the very first time. Needless to say, its intensity increases when you are doing it from a foreign land.
Dealing with the real estate market of a foreign city is challenging, to say the least. But, with the right set of information and a linear approach, this process can become not only manageable but also easy. This is what we intend to help you with. If you are someone who is looking forward to buying a property in Dubai from Canada, then you must be acquainted with the nuances of the process for the same.
In this space, we are going to discuss everything from whether you can buy a property in Dubai from Canada or not to the difference in real estate in both places. From giving you an overview of the real estate market of Dubai to the best areas for you to make your investments, we guide you every step of the way in your property-purchasing journey.
Can I Buy Property in Dubai from Canada?
The first order of business is getting to know whether you are allowed to buy a property in Dubai from Canada. You will be happy to know that, yes, you can buy a property in Dubai from Canada. The Government of Dubai opened its real estate gates to foreigners in 2002, allowing them to rent, sell, and buy properties in designated areas of Dubai.
Not to mention, with the availability of the UAE Golden Visa, you can gain long-term residency rights in Dubai as long as you invest at least AED 2 million in real estate.
The Promising Real Estate Market of Dubai
Dubai is a land of dreams that provides widespread opportunities and possibilities for people from varied backgrounds and ambitions in life. Its booming economy which has risen exponentially in the past several decades has propelled it into becoming a real estate giant, drawing global interest. The scenic beauty of the city coupled with marvelous architecture has lit its sky with breathtaking skyscrapers.
Both in terms of residential as well as commercial units, the city offers a diverse range of properties built by top-notch real estate companies. The thriving tourism industry along with the large settlements from around the world ensures high ROI (Return on Investments), increasing your chances of securing a profitable deal. Investing in Dubai is an economically smart decision owing to its immense potential, which one should definitely make the most of.
Real Estate in Canada v/s Real Estate in Dubai
Before you invest in a property in Dubai from Canada, you should get an overview of the comparison of the real estate market in both places.
To begin with, we must state that Dubai offers one of the highest rental yields in the world, making investments extremely profitable. In stark contrast, the high interest rates and inflation have led to a comparatively less rental yields for the Canadian market. As Dubai has a dynamic job market, there is always a high tenant demand, increasing your chances of making a steady income through rental sources.
Furthermore, Dubai offers freehold ownership of properties by foreigners with a leasehold right of up to 99 years. This provides a better long-term investment security when compared to the freehold system of Canada.
The taxation policy in Dubai is also much more relaxed than their Canadian counterparts. Canada has recently launched the Underused Housing Tax (UHT) on non-Canadian, non-resident, and foreign homeowners. On the other hand, Dubai has no personal or corporate income taxes.
If you take into consideration, price stability, cost of living, mortgage facilities, and real estate regulations, you will realize why investing in Dubai from Canada is a smart idea.
The Process of Buying Property in Dubai from Canada
If you follow a linear path like the one we will mention here, you will find the process of buying properties in Dubai from Canada extremely easy.
Background Research
Before anything else, study thoroughly about the real estate market of Dubai. Find out what kind of property you want to seek, in which area, and what is your budget, among other primitive decision-making benchmarks.
Talk to a Real Estate Professional
Never turn away help. The more assistance you can get, the better for you, especially when it comes from someone professional in the business. Hiring a reputed real estate professional will simplify the buying process for you, especially since as a Canadian, you might not be familiar with the ins and outs of Dubai’s real estate market. An expert can help you in finding the right property for you.
Select a Property
Select a property that will suit your needs and requirements in your preferred location. We can’t recommend enough the need to opt for a property at the prime location. This will ensure a higher ROI.
Close the Deal
Take legal assistance in drafting the Sale Purchase Agreement (SPA) and based on the terms and conditions of the payment plan, make the initial deposit to secure and finalize the deal. The down payment will depend on the type of property you purchase and the agreement you signed upon. You can get an attractive payment plan from the developer if you opt for an off-plan property.
Transfer the Ownership
Finally, the most important step is ensuring the transfer of ownership from the office of the Dubai Land Department (DLD). Provide all the necessary documents and paperwork needed to ensure a smooth transfer of ownership.
The Most Sought-after Areas in Dubai to Invest for Canadian Investors
There is no lack of idyllic locations to buy property in Dubai. Whether you want a beachside villa or downtown apartment, a townhouse in a serene environment or a penthouse in the main hub of the city, the options in front of you are endless. As for foreign investors, including Canadians, some of the most sought-after areas in Dubai to make profitable investments are as follows.
- Palm Jumeirah
- Dubai Marina
- Business bay
- Arabian Ranches
- Downtown Dubai
- Jumeirah Village Circle (JVC)
- Jumeirah Lake Towers (JLT)
- Jumeirah Beach Residences (JBR)
- Al Barsha
- Bluewaters Island
Conclusion
Buying a property in Dubai from Canada opens up the doors of immense possibilities of profitability as long as you carefully plan and execute the buying process. The lucrative real estate market of Dubai offers huge rental yields, making investments worth every penny. From flexible payment plans to relaxed taxation policies, investing in this city as a Canadian offers a world of opportunities.
All you need to do is ensure that you thoroughly research the area of Dubai you want to invest in and follow the law and order put in place for safeguarding your investment. We hope this guide has given you an overview of all the key aspects you need to keep in mind before buying a property in Dubai as a Canadian.
FAQs
Questions about Canadians Buying Properties in Dubai
Can a Canadian citizen buy property in Dubai?
Yes, a Canadian citizen can buy a property in Dubai in designated areas for freehold ownership.
Is it safe to invest in Dubai’s real estate?
Yes, it is safe to invest in the real estate market of Dubai as the government has laid strict laws in place to safeguard the interests of the investors that ensure your investment is safe and protected.
Why is Dubai an ideal investment destination for foreign investors?
Apart from having a scenic landscape and a skyline of stunning architecture, Dubai is a booming economy that is both a tourist hub as well as a gateway for international trade. Therefore, the real estate market here offers high ROI. Furthermore, the relaxed taxation policy of the city gives more chances of profitability for investors, making it an ideal place for foreign investors to invest.
What is the average ROI for properties in Dubai?
Although it may vary from property to property and the specific area where you buy the property, the average ROI for properties in Dubai ranges from 5-10%. This is based on the rental yields of the property. You should research current market trends to get better insights into the ROI.
Can a Canadian citizen settle in Dubai?
A Canadian citizen can settle down, live, and work in Dubai as long as they have a residence visa and work permit with them. There are a wide range of visa options that provide residencies to foreign citizens in Dubai and you can select one that fits your criteria the best.