Guide for Canadians Buying Property in Dubai

Guide for Canadians Buying Property in Dubai
Dubai, UAE
Last Updated: 01 Oct 2024

When you talk about investing in Dubai, the city is rich with opportunities and buzzing with activity. Our guide explains the details of buying property in Dubai as a Canadian to help you take advantage.

Over the years, Dubai has risen from a desert backwater to dazzling heights of development with its seven-star hotels, stunning skyscrapers, luxury shopping malls, and glitz and glamour lifestyle.

The modern city of gold is home to record-breaking attractions and man-made wonders, such as the world’s tallest building (Burj Khalifa) and the world’s largest shopping mall (the Dubai Mall). This explains why Dubai has become one of the world’s most attractive destinations, where expats outnumber the local population. However, when buying property abroad, you need to ensure to keep the transaction and exchange rate costs down.

If you’re a Canadian looking to invest in Dubai, many overseas buyers like you worldwide are riding the wave behind Dubai’s property boom. Fortunately, the city is a real estate paradise with many properties, so many options exist. Here’s a guide to buying property in Dubai to maximize your investment.

Can a Canadian buy property in Dubai?

Yes, Canadians can buy property in the Emirate of Dubai. The government of Dubai opened the real estate market to expatriates in 2022, and many expats and overseas buyers have been investing in the city ever since.

As a Canadian, you can buy freehold property in authorized areas without special regulations or permissions. You’ll own the property outright, including the land, it’s built on and can use for any purpose within local regulations.

Reasons to buy property in Dubai as a Canadian 

Is it worth buying property in Dubai as a Canadian? Let’s look at the perks of investing in Dubai properties to help you make an informed decision.

Easy buying process: Buying property in Dubai as a Canadian is simple, and property transactions can be completed relatively quickly. You don’t need a resident visa to own property.

Tax benefits: Dubai is a low-tax hub where individuals are not subject to tax on their real estate income. In addition, the Emirate does not impose capital gains or estate tax.

Visa provision: The Government of Dubai offers investor visas and allows you to sponsor your spouse and children. The residency visa is renewable after a set period, depending on the investment amount.

High investment potential: The future of Dubai real estate looks very bright. Dubai is politically stable and has a robust economy. It’s widely regarded as one of the best places to visit and live, with its melting pot of cultures and warm weather throughout the year. The city offers affordable properties, high rental yields, and great value for your money.

 

CTA Visual saying "Bank-beating exchange rates"

 

Types of properties in Dubai

Dubai’s property listings include apartments, villas, townhouses, condominiums, luxury housing, and a broad range of communities and developers to spoil people for choice.

With so many options, you can choose a property that suits your budget and requirements, whether you want to move to Dubai or invest in a high-return, high-income property. Your property options as a foreigner in Dubai typically fall into three “types.”

Freehold properties: Freehold properties are the most desirable option. They offer full ownership, and the property can be sold, rented, or inherited without the state’s consent.

Commonhold properties are units within a large building with communal areas and services. They offer the same rights as freehold properties but are usually managed by a property developer who charges service fees.

Usufruct properties: Usufruct properties involve a long-term lease arrangement for as long as 99 years. You can use and benefit from the property, but ownership belongs to another person.

Investing in Dubai real estate - Best places to buy property

When you want to invest in Dubai real estate, several key areas stand out due to their investment potential, lifestyle amenities, and strategic location:

Dubai Marina: This man-made marina neighbourhood is a community favourite that runs along a 3.5 km strip of shoreline. It’s a popular place to buy luxury apartments with magnificent views, residential skyscrapers, and the Dubai Marina Mall.

Palm Jumeirah: This artificial island stretches out in the Arabian Gulf as a palm tree when viewed from above, hence the name. It features a beautiful beachfront, luxury properties, and cosmopolitan five-star hotels and resorts, including the famous Atlantis Hotel.

Arabian Ranches: This suburban neighbourhood and gated community have upscale villas and townhouses. It’s a serene sanctuary with world-class amenities and features, including retail outlets, parks, and healthcare facilities.

Downtown Dubai: Downtown Dubai is notable as the home of the Burj Khalifa and Dubai Mall, the tallest building and largest mall in the world, respectively. It’s a tourism hub and is considered the heart of Dubai. This area has various properties, such as apartments, duplexes, and luxury penthouses.

Business Bay: Business Bay is a cosmopolitan financial district with commercial, residential, and retail properties for sale. One of the main attractions is the Dubai Water Canal, which extends from the historic Dubai Creek.

Emirates Hills: Often referred to as the "Beverly Hills of Dubai," Emirates Hills offers luxurious villas with stunning golf course views. It’s a prime area for high-net-worth individuals seeking privacy and exclusivity.

Jumeirah Village Circle (JVC): JVC is known for its affordable properties and strong rental demand. It’s a good option for those investing in Dubai real estate and seeking budget-friendly opportunities with the potential for long-term growth.

Guide to buy property in Dubai - Checklist for Canadians

These are essential “to-dos” before securing your ideal property in Dubai.

Identify property goals (personal use, rental income, investment).  
☑ Choose a location (e.g., Downtown Dubai, Dubai Marina, Palm Jumeirah).  
☑ Decide on property type (apartment, villa, commercial) and understand market conditions.  
☑ Verify property is in a designated freehold area.  
☑ Gather necessary documentation (passport, proof of address).  
☑ Explore financing options for foreign buyers and plan for currency exchange and transfer.  
☑  Hire a licensed real estate agent in Dubai and a Dubai-based lawyer for legal assistance.  
☑ Visit or arrange virtual tours of properties.  
☑ Submit an offer on the chosen property.  
☑ Be ready to pay a 10% deposit upon offer acceptance.  
☑ Ensure clear title deed and seller’s right to sell.  
☑ Have a lawyer review the Sale and Purchase Agreement (SPA).  
☑ Sign the SPA before a notary public.  
☑ Complete ownership transfer at the Dubai Land Department.  
☑ Receive the property title deed in your name.

How to buy property in Dubai from Canada?

Real estate investment in Dubai from Canada involves several steps to ensure a smooth and successful transaction. Whether you are buying a condo in Dubai or investing in a commercial property, here’s a step-by-step guide:

Step 1 - Research and choose the right property

Identify the area in Dubai that suits your investment goals or lifestyle preferences, such as Downtown Dubai, Dubai Marina, or Palm Jumeirah. Depending on your budget and objectives, decide whether to invest in an apartment, villa, or commercial property.

Step 2 - Engage a real estate agent

Work with a licensed real estate agent in Dubai with foreign buyers' experience. They can help you find suitable properties, negotiate prices, and handle legal requirements. Although it’s ideal for visiting Dubai and viewing properties in person, virtual tours can be arranged if travelling is impossible.

Step 3 - Understand legal requirements

Dubai allows foreign nationals to buy property in designated freehold areas. Make sure the property you are interested in is within these areas. Depending on the property type, you will need a valid passport, proof of address, and possibly a visa or residency document.

Step 4 - Make an offer and pay the deposit

Once you choose a property, submit an offer through your agent. After accepting the offer, you must pay a deposit, usually around 10% of the property value.

Step 5 - Hire a lawyer and conduct due diligence

Engage a Dubai-based lawyer to review the sale and purchase agreement, check the property’s title, and ensure no outstanding liabilities. Your lawyer will also ensure the seller has the right to sell the property and that all legal requirements are met.

Step 6 - Finalize the purchase

Sign the sale and purchase agreement (SPA) in the presence of a notary public, either in Dubai or through power of attorney. The ownership transfer is completed at the Dubai Land Department, where the remaining payment is made, and the property title deed is issued in your name.

Step 7 - Post-purchase considerations

If you don’t plan to reside in the property full-time, consider hiring a property management company to handle maintenance, rentals, and other responsibilities. Be aware of ongoing costs such as service charges, maintenance fees, and property taxes.

 

CTA Visual featuring an image of a plane window looking out into the city of Dubai.

 

Dubai real estate investment - Pay for your property online with MTFX

If you’re buying property in Dubai from Canada, you’ll need a specialist foreign exchange service like MTFX that offers competitive exchange rates and low, transparent fees. Property purchases are big-ticket investments. So, making that investment count is essential to eliminating expensive and unnecessary bank charges and expenses.

With MTFX, you can convert currency and transfer large amounts of money abroad to pay your deposit, mortgage payments, or associated expenses. It’s quick, easy, and convenient with your 24/7 secure online account. Plus, you get expert guidance and access to FX tools that help you get the best exchange rates in an unpredictable market.

Whether buying a beachfront villa by the sea or an exquisite apartment in the heart of Dubai, you can open an account in less than five minutes, book a great CAD/AED exchange rate, and we’ll do the rest.

Open an account today with MTFX to enjoy quick and easy transfers from Canada to Dubai for your property purchase. 

 


FAQs

1. Can foreigners buy property in Dubai? 

Yes. You can buy property in Dubai as a foreigner in several freehold areas, such as Dubai Marina, Dubailand, Jumeirah Lake Towers, and DAMAC Hills. 

2. Do I get residency if I buy a house in Dubai? 

You can get a residency visa if you’re a non-GCC national, but the process is not automatic. First, you must invest the minimum required amount in a freehold property, then follow the prescribed visa application route.  

3. What are the benefits of buying a house in Dubai? 

Dubai offers a high standard of living, excellent infrastructure, tax benefits, high rental yields, breathtaking attractions, and more. These benefits make buying property in Dubai a good investment. 

4. How do I send money from Canada to Dubai for my property purchase? 

With MTFX, you can make large-sum international money transfers to Dubai quickly and easily. It takes less than five minutes to sign up for a 24/7 secure online that gives you access to competitive exchange rates, low transfer fees, and personalized support. 

5. What are the risks of buying property in Dubai?

Buying property in Dubai comes with various risks that buyers should be aware of. These risks include investing in the wrong property, purchasing in an area with low investment value, the potential for fraudulent activity, market instability, currency exchange risks, and navigating complex legal issues. It is essential to do thorough research and seek expert advice to avoid these risks and make an informed property investment decision in Dubai.

6. Is it easy to buy an apartment in Dubai?

Buying an apartment in Dubai is relatively straightforward, especially for foreigners, thanks to the city's well-regulated property market and freehold areas where non-residents can purchase property. The process is streamlined, with clear steps involving property selection, legal checks, and the transfer of ownership, making it accessible for local and international buyers.

7. What are the admin costs of buying a property in Dubai?

The administrative costs of buying a property in Dubai typically include a 4% transfer fee payable to the Dubai Land Department, a real estate agent's commission ranging from 2% to 5% of the property price, and legal fees that vary depending on the complexity of the transaction. Additional costs may include fees for mortgage registration (if applicable) and service charges for the property.

8. What is the law behind buying a property in Dubai?

The law governing property purchases in Dubai allows foreigners to buy property in designated freehold areas. The Dubai Land Department oversees all real estate transactions, ensuring legal compliance and protecting buyers' rights. Buyers must go through a legal process, including signing a Sale and Purchase Agreement (SPA), paying a deposit, and registering the property to secure ownership.

9. What is a title deed in Dubai?

A title deed in Dubai is an official document issued by the Dubai Land Department that serves as proof of property ownership. It is a crucial legal document that confirms the buyer's ownership rights and is required for the registration and transfer of the property. The title deed also contains important details such as the property description, owner name, and associated rights or restrictions.

Copyright © 2024 MTFX Group

Registration Icon
Customer Support Icon
Chat Icon