Dubai's real estate market continues to attract significant investments not only from individuals but also from companies that are increasingly looking to acquire residential properties for various strategic purposes. The short answer to whether companies can purchase apartments in Dubai or not is yes, but it depends on several key factors, including the company's location, licensing, and the property's designated zone.
Throughout this article, we will list all the regulations and factors companies need to consider before purchasing residential property in Dubai.
Two types of ownership govern how companies can acquire real estate in Dubai, it’s either freehold or leasehold ownership.
The freehold ownership represents the most popular form of property ownership available to companies in Dubai. This type of ownership grants the company complete ownership of both the property itself and the underlying land it occupies, giving the company the ability to lease, sell, or transfer the property without restrictions.
It’s worth noting that this ownership type is restricted to some designated areas already set by the government.
The leasehold ownership provides companies with usage rights of a property for specific periods, typically ranging from 30 years to 99 years. This ownership type offers broader area availability throughout Dubai, but it also comes with some limitations and requires careful consideration of renewal terms and conditions.
This ownership type allows companies to occupy, use, and also profit from the property, while the underlying land remains owned by the UAE government, and the company can’t sell the property.
The regulatory landscape for corporate property ownership in Dubai varies based on the company's origin and legal structure, where the UAE and GCC-based companies' regulations differ from those of foreign companies.
Companies incorporated within the United Arab Emirates or other GCC countries enjoy complete property ownership rights in Dubai, as they can purchase residential properties anywhere within the UAE without any geographical restrictions, which gives them maximum flexibility and doesn't require them any additional licenses or preparations.
On the other hand, foreign and international companies face more requirements when purchasing apartments in Dubai or in the UAE, as they must establish their presence first as a UAE-registered entity to own a property.
To create their UAE entity, they will need to be established in a Dubai free zone that is approved by the Dubai Land Department (DLD) or to be incorporated within the Dubai International Financial Centre (DIFC) without any local sponsor needed.
Also, it’s worth noting that foreign companies' ownership is restricted to specific freehold areas designated by the government, which include popular locations in Dubai such as Downtown Dubai and Jumeirah Village Circle (JVC).
As mentioned earlier, there are structured pathways that allow foreign and international companies to purchase a property in Dubai.
The DIFC represents one of the premier free zone options for companies seeking property investment capabilities, as the companies registered in DIFC have access to Dubai's broader freehold areas, with some approvals needed from the Dubai Land Department (DLD).
Dubai Multi Commodities Centre (DMCC) is another prominent Dubai free zone that permits real estate ownership, offering companies working and trading in gold, diamonds, precious metals, tea, food grains, and more commodities to purchase residential properties in Dubai with 100% property ownership.
Companies purchase apartments in Dubai for various strategic reasons that extend beyond being a simple real estate investment, as the reasons could be:
Investing in real estate allows companies to diversify their asset portfolio by reducing reliance on a single revenue stream and minimizing risks related to market volatility and fluctuations.
Moreover, real estate offers stability and long-term growth opportunities, unlike other types of investments which encourages corporations to invest more in it.
Many corporations invest in residential properties to address employee housing needs, especially for expatriate workers who usually don't have a place to live, and it’s also considered a cost-effective solution for both the company and the employees.
Also, providing accommodation totally improves employee satisfaction rates and reduces turnover, which helps the company attract and retain international talents.
When the corporate-owned apartments are not used for internal needs, there is an opportunity for the company to generate consistent rental income from them which will provide an additional revenue stream for the business.
The process of corporate property acquisition in Dubai has several key steps that any company must go through carefully to ensure compliance with the UAE standards, and also gain the benefits of owning a property.
First of all, companies must establish their legal structure in order to own property in Dubai. This can be done through establishing a free zone company, as mentioned earlier.
This step is where the companies should carefully choose the property they would like to acquire and also choose the location for it according to their objective. It’s worth mentioning that if the property will be used as an accommodation for employees, then it’s better to be close to the company itself or to the main transportation hubs to ensure convenience and accessibility for them.
After choosing the property and having a legal entity in the UAE, companies can complete their purchase and pay the Dubai Land Department (DLD) fees, which are typically 4% of the property value, as well as transfer fees.
Corporate entities are indeed eligible to acquire residential properties in Dubai, subject to specific regulatory requirements that vary based on the company's jurisdiction and corporate structure. What remains undeniable is that the UAE, particularly Dubai, continues to position itself as a premier destination for both local and international corporations seeking strategic real estate investments, whether for portfolio diversification or accommodations.
If you have any questions regarding the regulations or the documents needed to acquire a residential property as a company, feel free to contact us at +97180015, and one of our real estate consultants will be glad to assist you with all the information you need.
