Foreign investors will get access to freehold Dubai property through DIFC

05.11.2017
Foreign investors will get access to freehold Dubai property through DIFC

Registration in the Dubai International Financial Center (DIFC) will help foreign businessmen invest in any real estate in Dubai.

The Dubai International Financial Center (DIFC) and the Dubai Land Department (DLD) have signed a key Memorandum of Understanding (MOU) allowing investors from other countries to buy any non-freehold properties, both inside and outside this free economic zone through companies registered in it.

This initiative marks just another important step towards strengthening DIFC free zone status as the largest financial and business hub in the Middle East.

As of May, over 1600 companies have already been registered within DIFC. Foreign investors choose DIFC, as the registration here presupposes 100% ownership of real estate and an independent judicial system application in case of any disputes arising. However, companies registered in DIFC were not allowed to purchase properties outside of DIFC. Thus, most of the investors registered within DIFC were predominantly large companies.

Now, any company registered in DIFC, including partnerships, foundations, investment trusts, will have expanded access to the Dubai property market.

However, despite all the changes, companies, whose owners are not citizens of the GCC countries will still be limited to purchasing real estate units only in areas intended for possession by foreigners (freehold).

On the other hand, despite the restrictions, a strategic Memorandum between the DLD and DIFC will simplify the process of land registration for the owners of these companies.

Enhanced investment opportunities based on DIFC registration are likely to contribute to the growth of structured investments in the Dubai real estate sector, offering a wider range of options for structuring future projects.

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Lease process (Rent out)

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership

1 day

Ad placement:

  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.

Up to 2 days

Signing of the lease agreement

Expenses of the seller:

None

Additional services:

Property management

Lease process (Rent)

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Contract of the lessee and agency.

Up to 5 days

Real estate search.

Selection of optimal options.

Up to 2 days

Signing of the lease agreement

Expenses of the lessee:

-5% agency commission of the annual contract price

Additional services:

None

Purchase process

1 hour

Contract of the tenant and agency.

~ 2 weeks secondary

~ 3 weeks new building

Property Selection

Selection of optimal options

1 Week

Registration of the contract of purchase / sale

Customer charges:

  • 2% from purchase at transaction
  • 4% - registration of the transaction at registration

Additional services:

Property management

Sales Process

1 hour

Contract of the lessee and agency.

Required documents:

  • copy of the passport
  • copy of the certificate of ownership

1 day

Ad placement:

  • 20 real estate portals;
  • client base of the agency;
  • profile exhibitions, etc.

Up to 2 days

Signing of the lease agreement

Expenses of the seller:

None

Additional services:

None

the management process

1 hour

Contract of the owner and agency

1 year

Rendering of management services

1 day

Reporting

Expenses of the owner:

5% of the annual rental price

Additional services:

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Investment Process

1 hour

Contract of the tenant and agency.

From 3 days

Selection of optimal investment options

1 Week

Registration of the contract of purchase / sale

Expenses of the investor:

  • 2% when investing in the secondary market
  • 0% when investing in a new building
  • 4% - registration

Additional services:

Property management