How to Buy Property in Dubai from Pakistan?
Are you keen on investing in Dubai’s real estate from Pakistan? Are you wondering if you can invest in the property market of Dubai if you are not a resident of the UAE? Do you have to be physically present in Dubai in order to purchase property in Dubai?
In this article, we answer all of the above questions and explain in detail how you can buy property in Dubai from Pakistan. You can purchase a property in Dubai in an area that has been regarded as ‘freehold’ by the government of UAE. You do not have to be a UAE national or even a UAE resident in order to do that. With the introduction of Golden Visas, there has been a surge in the interest of Pakistani investors looking to invest in Dubai’s real estate since this visa allows them to stay in the UAE for 10 years and is granted to foreign investors investing 2 million AED or more in UAE’s real estate.
Can you buy Property in Dubai from Pakistan?
As per South Asia Investor Review, Pakistanis are the third largest foreign real estate investors in Dubai having invested about $10.6 billion in Dubai’s real estate. All Pakistanis, whether they are residential expats or non-residents can buy property in Dubai on the basis of freehold. This means that Pakistanis can buy, sell and lease their property in Dubai provided that the property is located in one of the designated freehold areas. There are a number of freehold areas in Dubai that offer a variety of property types and propose affordable to extravagant real estate options. Some of the most popular areas are Dubailand, Dubai International Financial Centre, Jumeirah Village Circle, Downtown Dubai, and Jumeirah Beach Residence. As a Pakistani, you can invest in apartments, studios, duplexes, villas, and townhouses in Dubai’s residential real estate market.
You can also invest in commercial real estate property from Pakistan in one of the designated freehold areas.
Eligibility Criteria for Pakistanis Buying Property in Dubai:
As we have mentioned above, you do not have to be a UAE resident to purchase property in Dubai. However, you must have a valid Pakistani passport. You can also apply for loans from UAE banks but the mortgage options will be limited and you will be asked to submit bank statements, proof of your work status, and your monthly income.
Do you have to Travel to Dubai to Buy Property from Pakistan?
You do not have to travel to Dubai from Pakistan in order to carry out the transaction and oversee the purchase. You can easily appoint someone on your behalf by issuing them a Power of Attorney (PoA). For this purpose, you will have to hire a law firm in the UAE to draft the PoA. This PoA needs to be attested by Pakistan’s foreign ministry and UAE Embassy in Pakistan.
You can then send the PoA to your representative in Dubai who will get it attested by the Ministry of Foreign Affairs and International Co-operation in the UAE. If not already translated, the PoA must be translated and stamped in Arabic by a legal translator. The translated PoA will then be attested and stamped by the Ministry of Justice, UAE. You can apply for this attestation through their web portal.
Once the formalities of the PoA are complete, your representative in Dubai can buy property in Dubai on your behalf.
Process of Buying Property in Dubai from Pakistan:
The process of buying property in Dubai is the same for expats and non-UAE residents. The only difference is if you are in Pakistan and want to buy property in Dubai, you will be appointing someone in Dubai to buy property on your behalf by signing a Power of Attorney.
The first step is to make a verbal offer. Once the offer is accepted a formal sales contract will be drafted and signed by both parties. This is usually the time when the buyer will be making a down payment. The process and rules of buying property in Dubai can be slightly different based on whether you are buying an off-plan property or a ready property.
Buying an Off-plan Property from Pakistan:
If you are purchasing a property from a developer (also known as an off-plan purchase) you will have to submit a reservation form with your passport. This form outlines the basic terms and conditions of the sale, the payment plan, and details of both the buyer and the seller.
After that, a reservation deposit is made and a sales and purchase agreement is drafted, the contents of which are pretty similar to that of the reservation form. At this point, the seller might ask the buyer to pay 20% of the price of the property. Make sure that the agreement clearly states the finishing date for the project and for the furnishing of the property if it has been agreed that the property will be handed over fully furnished. You also need the agreement to state the compensation that the buyer will be entitled to in case the property has not been handed over at the agreed-upon date.
In order to complete the purchase, the deed is transferred to the buyer. If the property is already registered, this will be done at the office of the Dubai Land Department (DLD) otherwise this will take place in the developer’s office. Before the transfer, you should do your due diligence regarding the property and take up your reservations, if any, with the developer. The developer will be required to address your concerns if those concerns are valid and are a part of what the developer needs to deliver in the sales and purchase agreement.
Purchasing ‘Resale’ or ‘Ready’ Property in Dubai from Pakistan:
Purchasing property from a private seller, who is not a developer, is slightly different. In such cases, both the buyer and seller sign a Memorandum of Understanding (MoU) stating the terms and conditions of the purchase agreement. Once the document is signed, the buyer pays the deposit which is usually 10% of the property price (or whatever has been agreed upon between both parties). This is a non-refundable payment and can only be redeemed if the seller fails to transfer the ownership of the property to the buyer for some reason. At this point, the real estate agent’s fee is also settled.
Once the buyer has obtained the financing and has made the full payment to the seller, the deed is transferred. As with the off-plan purchase, the buyer here is also entitled to make an inspection of the property and highlight any concerns to the seller before making the full payment.
Key Takeaways:
You can own a property in Dubai whether you are a resident or a foreigner. The laws and rules surrounding the ownership of property in Dubai by Pakistanis are far more relaxed than in any other emirate of the UAE. Owning a property can also be a gateway to getting a long-term residency visa known as Golden Visa. This is a huge opportunity for investors living in Pakistan to acquire UAE visas without sponsorship.
