Dubai’s real estate sector is very dynamic. In particular, since 2022, the emirate’s real estate market has experienced strong growth, with record numbers of transactions in certain months.

So, if you’re planning to invest in property with friends, colleagues, family, etc., you should get started now to maximize your chances of capital gains or rental profitability.

To help you, we’ve listed the essentials you need to know to invest in Dubai real estate.

As you might expect, the answer is yes. In fact, contrary to what you might think, many properties built in Dubai are jointly owned by several owners. So it’s possible.

Under Dubai’s condominium law, 2, 3 or 4 people can legally own a single property.

If the number of owners exceeds 4, the law requires the creation of a trust. The owners, whose number can then be unlimited, can then be designated as beneficiaries of the trust. They are therefore owners through the trust.

Obviously, the share of the property held by each investor must be clearly indicated on the title deed issued by the Land Department at the end of the property transfer.

In general, the percentage of ownership indicates the personal financial contribution of each investor. Revenue sharing between investors is therefore based on this percentage.

For example, for married couples buying a property jointly, the percentage of ownership is often 50% on both sides.

Why should several people invest in Dubai real estate?

The exorbitant price of real estate in Dubai is a major obstacle to home ownership in this city of gigantic projects.

Over time, these prices have continued to rise, reducing the ability of more people to invest in real estate in this emirate.

To cope with this rise in property prices in the emirate, it is not uncommon to see married couples, parents and children, siblings, friends, etc., pooling their resources to acquire property jointly.

Authorized and governed by Dubai’s joint ownership law, joint ownership has become a more viable solution for becoming a landlord in Dubai.

The main advantage of this option is that the greater the number of property owners, the easier it is for them to obtain loans from banks, especially in times of economic downturn when banks are tightening their lending standards.

In condominiums, the title deeds will bear the names of all the co-owners. This means that all co-owners must give their consent if one of the investors decides to sell or rent his or her share to a third party. Ideally, you should draw up an agreement clearly defining the terms of co-ownership.

What you need to know if you want to invest in a property in Dubai?

If you’re thinking of buying residential or rental property in Dubai to take advantage of the ever-increasing property prices on the market, you need to get in touch with the Dubai Land Department.

The main document to provide is a copy of your passport, not your residence permit.

You will need to open a bank account in Dubai to transfer the funds to be used for the operation. Setting up an account is very straightforward, and usually only takes an hour.

All you need are original, certified copies of your last six bank statements.
If you need to obtain a mortgage to complete the purchase, even as an expatriate or foreign investor.

If you meet all the conditions of income stability and minimum monthly salary, you can obtain an agreement in principle within 4 days.

Please note, however, that if you are an expatriate, a down payment of between 20% and 35% will be required to obtain a mortgage, depending on the value of the transaction.

It is therefore impossible for a mortgage to be the sole source of financing for your real estate investment in Dubai. However, the mortgage can cover up to 80% of the value of the property.

And, as is the case in France, the transaction is finalized in the notary’s office. Your real estate agent will help you make an appointment with the Department of Land.

To ensure a smooth process, make sure your real estate agent is registered with the Real Estate Regulatory Agency.

The agent will advise you on your real estate project and help you find a villa, apartment, duplex, loft, penthouse, apart-hotel, etc., to suit your requirements. There is a wide choice of residential and rental units.

Your agent will also help you negotiate with the seller, check the authenticity of the title deeds and draw up the preliminary sales agreement.

As soon as all the documents required for the transaction are ready, he will take you and the seller to the Dubai Land Department, the government body responsible for real estate transactions in Dubai, to complete the transaction. In all, the transaction will take between 4 and 15 days, depending on the case.