Foreign Property Ownership Law in Dubai: Permitted Areas & Full Restrictions Guide 2026

Foreign Property Ownership in Dubai: Where Can You Buy Freely? What Are the Restrictions?

Over the past two decades, Dubai has witnessed a global real estate boom that has positioned it among the most attractive markets for foreign investors. This success is driven by a powerful combination of flexible legislation, a tax-friendly environment, and world-class infrastructure.

However, before making a purchase decision, one fundamental question arises:

Can foreigners own property freely in Dubai? Where are they allowed to buy? And what legal restrictions apply?

In this comprehensive guide, we explain Dubai’s foreign property ownership law in detail — including permitted areas, ownership types, legal regulations, and the full purchasing process.

First: Can Foreigners Own Property in Dubai?

Yes — foreigners are legally entitled to own property in Dubai with full ownership rights.

This became possible under Freehold Law No. 7 of 2006, a landmark regulation that transformed Dubai’s real estate market by allowing non-UAE nationals to purchase and own property in designated zones known as Freehold Areas.

What does this mean in practice?

• A foreign buyer can purchase property under their personal name
• No local Emirati partner is required
• The owner can sell or lease the property freely

Ownership is officially recognized through a Title Deed issued by the Dubai Land Department

This right applies to:

• UAE residents
• Non-residents (international investors)
• Registered companies (subject to conditions)

Second: Types of Property Ownership for Foreigners in Dubai

Understanding ownership structures is essential, as they define your legal and investment rights.

1. 1. Freehold Ownership

This is the strongest and most secure form of ownership for foreign investors.

What does it include?

• 100% ownership of the property
• Ownership of the land on which it is built
• Full resale rights at any time
• Long-term or short-term leasing rights
• Inheritance rights for legal heirs

Most luxury and branded developments in Dubai are offered under Freehold ownership.

2. 2. Usufruct Rights

This grants the right to use and benefit from a property for a long period (up to 99 years), without owning the land itself.

Suitable for:

• Mid-term investors
• Corporate buyers
• Investors focused on rental income rather than permanent ownership

3. 3. Leasehold Ownership

• Time-limited ownership (up to 99 years)
• Less common in Dubai
• More prevalent in certain older districts

Discover Dubai’s Areas and the Properties in Each Community

Third: Freehold Areas in Dubai for Foreign Buyers

Foreigners cannot purchase property across all of Dubai — ownership is limited to specific zones designated by the government to regulate market growth.

Why were specific areas designated?

• To protect demographic balance
• To regulate urban planning
• To direct foreign investment into growth corridors

Key Freehold Areas in Dubai

• Dubai Marina
• Downtown Dubai (Burj Khalifa District)
• Palm Jumeirah
• Business Bay
• Jumeirah Beach Residence (JBR)
• Dubai Hills Estate
• Arabian Ranches
• DAMAC Lagoons
• Mohammed Bin Rashid City (MBR City)
• Tilal Al Ghaf
• Jumeirah Village Circle (JVC)
• Majan
• Dubailand

These communities offer apartments, villas, townhouses, and serviced hotel units — and remain among the most in-demand locations for international buyers.

Fourth: Legal Restrictions on Foreign Ownership

Despite the market’s openness, certain regulations must be clearly understood.

1. 1. Ownership Outside Freehold Areas

Foreign buyers cannot acquire full ownership outside designated freehold zones.

Alternative options include:

• Usufruct rights
• Leasehold ownership
• Partnership with a UAE national

2. 2. Purchasing Vacant Land

In some districts:

• Only developed residential units may be purchased
• Undeveloped land plots may be restricted
• This regulation aims to prevent unregulated land speculation.

3. 3. No Objection Certificate (NOC)

When reselling a property:

• A developer’s approval (NOC) is required
• It confirms all service charges and fees are settled

4. 4. Government Fees

Key transfer costs include:

• 4% Dubai Land Department (DLD) transfer fee
• Registration fees
• Administrative charges

These are one-time payments — Dubai imposes no annual property tax.

Fifth: Residency Through Property Ownership

One of the major advantages of real estate investment in Dubai is residency eligibility.

2-Year Property Investor Visa

• Granted when purchasing property valued at AED 750,000 or more.
• Renewable
• Does not require local employment

10-Year Golden Visa

• Granted when property investment reaches AED 2 million or more.
• Long-term residency
• Family sponsorship included

Key benefits:

• Long-term stability
• Ability to open bank accounts
• Family residency sponsorship

Sixth: Advantages of Foreign Property Ownership in Dubai

Why do global investors choose Dubai?

• 100% full ownership rights
• Highly regulated market
• Rental yields between 5–9%
• No income tax
• No annual property tax
• High resale liquidity
• Strong global demand
• Currency pegged to the US Dollar

Seventh: Steps to Buy Property in Dubai

Simplified process:

• Select property and location
• Sign Reservation Form
• Pay booking deposit (typically 10%)
• Sign Sales & Purchase Agreement (SPA)
• Obtain NOC from developer
• Transfer ownership at Dubai Land Department
• Receive Title Deed

Timeline:

• 3–7 days for ready properties
• Longer for off-plan projects

Eighth: Important Legal Tips Before Buying

Before purchasing, ensure you:

• Work with an RERA-licensed broker
• Review the developer’s track record
• Understand service charges
• Study expected rental yield
• Review contract clauses carefully
• Verify payment plan terms