Apartment in the UAE with a residency permit
Apartments and flats for sale in the UAE are known for superior comfort, liquidity, and profitability, making them appealing to expats and investors. Local residential complexes have a modern design and developed infrastructure, including swimming pools for adults and children, gyms, saunas, playgrounds, barbecue areas, 24-hour security, concierge service and other amenities.
The pleasant climate, well-maintained beaches and popular attractions attract tourists, providing a high demand for rental properties. Expats are interested in both renting a long-term property and buying apartments for sale in the UAE offering easy access to schools, hospitals, supermarkets and other social facilities.
The most popular destination for investment in apartments is Dubai, the country’s economic hub with the best conditions for living, business, investment and recreation. It is followed by Abu Dhabi and Ras al Khaimah, where you can find more affordable and equally high-quality options.
Residence permit in UAE by buying an apartment
Foreign investors can issue a residence permit in the UAE through a property investment. The validity period of the resident status will depend on the amount of an investment apartment in the UAE. The minimum investment threshold allowing foreigners to apply for a 2-year permit is AED 750,000 ($205,000). If you want to issue a 10-year resident permit, you need to invest at least AED 2 million ($545,000).
If investors want to obtain a 2-year residence permit for themselves and their spouses, the lowest price of an apartment for sale in the UAE should be AED 1 million ($273,000). In this case, a certified marriage certificate translated into Arabic must be included in the list of documents that they will submit to the immigration service.
Investment apartment in UAE
Why do foreigners choose apartments in the UAE for investment:
- A growing economy. The country has the second-largest economy in the Arab world. It grew by 3.6% in 2023, and the volume of GDP increased by 6.2%, excluding the share of the oil industry.
- An advantageous tax system. Foreigners who have invested in flats in the UAE and become residents are exempt from many taxes, including income tax.
- Relatively affordable apartment prices in the UAE. Despite the rapidly growing demand from buyers and tenants, the cost of apartments in the UAE remains loyal compared to Hong Kong, Zurich, Seoul and other popular destinations for real estate investments.
- A strong tourism sector. More than 15 million tourists visit the country every year. They are attracted by well-maintained beaches, state-of-the-art infrastructure and world-famous attractions such as the Burj Khalifa.
- A wide range of property in the UAE. The growing demand for housing encourages developers to launch new projects that attract buyers with unique advantages. The real estate market can offer you both studios and flats for sale in the UAE with standard layouts, as well as luxurious 2-storey penthouses with dressing rooms, an office, a laundry room and personal upscale amenities such as a swimming pool, Jacuzzi and gym.
These factors are responsible for the rise in the price of apartments in the country. Residential real estate in Dubai and Abu Dhabi in Q1 2024 rose in price by an average of 18.3% and 8.6% year-on-year. International investors who want to get significant capital gains in the long term prefer to buy a flat in the UAE. To maximize the profit from resale, they conclude a deal at the initial stages of the construction of an apartment complex. Prices for such properties grow by an average of 20–30% after their commissioning.
An apartment in the UAE with a residency permit also attracts investors interested in rental income. The average payback rate for long-term rentals varies 5–8% per annum. Daily rent in popular tourist locations can reach 11–13% per annum. According to experts' forecasts, rental prices will keep rising, so that investors will be able to return their money as soon as possible.
FAQ
Bahrainis, Qataris, Kuwaitis, Omanis and Saudis can buy an apartment in the UAE and get a residence permit. Citizens of other countries also have the right to purchase apartments and villas in the UAE, but only in certain areas. They can own real estate in special freehold zones permanently. 50 such areas are located in Dubai and another 9 in Abu Dhabi.
If the property is located outside the freehold zone, a foreign investor can own it on a long-term lease basis. The leasehold allows them to use their properties for 99 years and gives almost the same rights as the owners. The only difference between usufruct and it lies in the ban on redevelopment and reconstruction. There is also a musataha, which gives the right to use the property for 50 years and change it.