Abu Dhabi Property Buying and Ownership Laws for Foreigners

The law of UAE in real estate earlier banned the residents of any of the emirates from owning real estate. However, the tendencies in a change of real estate law were oriented toward allowing non-UAE citizens to own and own real estate under certain conditions. Further, citizens of other countries are allowed to buy or invest in the freehold estate only in some areas of the capital.  Hence, you must acquaint yourself with the Emirate of Abu Dhabi’s general property-buying laws before investing in an apartment or a villa.

Today, we will go through Abu Dhabi property laws for expats, as the ownership rules differ for non-UAE nationals.

Abu Dhabi Property Ownership Laws for Expats

Noncitizens of the UAE, or foreign investors who would want to invest in real estate in Abu Dhabi, particularly will find our laws on real estate in Abu Dhabi for expatriates helpful in the information given in this section.

Foreigners can have properties in Abu Dhabi in four major processes according to Law No. 19 of 2005. These systems are described in detail below:

Ownership Deeds

There is also the issue of freehold rights where some of the residential building’s ownership deeds are issued to foreigners who are non-UAE nationals on lease bargains for 99 years. This system can be used in the sales of villas and apartments being owned by expatriates among other investors.

Musataha

Foreigners are permitted to own residential property in Abu Dhabi for 50 years under the terms of the Musataha contract. Additionally, the ownership period is extendable for the same amount of time as the parties involved. In addition to using the residential unit, non-UAE nationals who own it are permitted to build or modify the property throughout the allotted term.

Usufruct

Under the Usufruct system, foreigners are allowed to own and inhabit a residence within Abu Dhabi for 99 years. They get to use some features of the property, but they cannot make alterations.

Long-term lease

Third, occupancy rights are also given to expatriates for at least 25 years of lease holding on their properties.

Amendments in Abu Dhabi Property Laws for Expats

The government of Abu Dhabi altered the rules regarding foreigners owning property in the UAE in 2019. Previously, non-UAE nationals were only allowed to own offices, freehold flats, or villas, but not real estate. But as of recent legal changes, the freehold land is only available to those other than the nationals of UAE and international legal entities in the capital city only. Moreover, now expats can freely buy homes and receive all corresponding rights to the property purchased in the Emirate’s investment areas per the changes to the Abu Dhabi laws of buying property for foreigners.

The amendments to the laws governing foreigners’ buying of property in Abu Dhabi were intended to raise direct investment, enhance investor service, and bolster the economy.

The two articles that touch on the issue of modification are articles 3 and 4 under the Abu Dhabi property laws for foreigners. Originally, as stated in Article 3(i), the Emirate has a right to own property in three forms. That is as follows:

Foreign investors own no more than 49 percent of these public holding firms.

A person who has received a decision from the Crown Prince of Abu Dhabi or who received a decision from the President of the Executive Council

Also, Article 3(ii) permits the acquisition and ownership of all property rights in investment zones by legal persons or expatriates.

Clearly under article 4, the non-u.a.e. nation who has had a Musataha or Usufruct contract over the period of ten years is allowed to sell the property without the landlord’s consent this includes the mortgage right. According to the law regarding Musataha or Usufruct contract, the landlord cannot mortgage the property without the consent of the holder. However, under both circumstances, the parties may otherwise agree.

Thus, main rights may also be disposed of by non-UAE nationals, and freehold property ownership Can also be disposed of under the amendments to the Abu Dhabi property ownership regulations for ex-pats. In investment zones in Abu Dhabi, they can also hook the mortgage rights to the property rights.

Where Can Expats Buy Property in Abu Dhabi?

For any foreigner, it is allowed to own freehold land in certain parts of the capital city based on the Abu Dhabi property laws expounded above. They can now buy or invest in real estate in Masdar City, Al Reef, Yas Island, Saadiyat Island, Lulu, Sayh Al Sedairah, Mariya, and Al Raha Beach.

Do Expats Get a Residence Visa on Buying a Property in Abu Dhabi?

There are certain restrictions on foreign investors entering the UAE, but one kind of residence visa may be granted for foreigners interested in purchasing property in Abu Dhabi. To get a resident visa, you have to

• We can find a property in this area that can cost not less than AED 5 Million.
• As much as possible the house should not be bought with the help of a mortgage.
• If the foreign national retains the property for three years

Can Non-UAE Nationals Apply for A Mortgage in Abu Dhabi?

Foreigners are also capable of getting a mortgage to buy property in Abu Dhabi. On housing loans, they can approach Emirate-based lenders. However, several constraints are in place. For instance, the borrower may be a foreign national in the offer for a mortgage if he or she has developed recent employment for one year or half years. Second, the firm from non-UAE nations must have operated for at least two years if the non-UAE nation is a self-employed worker.  Also, foreign buyers, who decide to buy a villa, land, or apartment in Abu Dhabi with a value of not exceeding 5 million AED, must provide 20-25 percent of the mortgage sum.

With this, we conclude our guide to Abu Dhabi’s real estate purchase requirement for foreigners. Perhaps the laws on foreign investors acquiring properties remain different in other Emirates. To avoid any inconvenience, it is suggested that you find below the basic foreign investment rules of the USA for the purchase of real estate in the United Arab Emirates.

If you are not a citizen of the United Arab Emirates and you need to invest in real estate, make sure the following are some of the steps to minimize the risk involved. When buying a house, it is recommended that for this kind of purchase, you should engage the services of a real estate agent with a specific understanding of the region of your interest. If you want to invest in properties for sale in Abu Dhabi you can use these many properties as a reference in case you are willing to buy a house in the areas where the government has allowed foreigners to buy properties.