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Buy Property in Dubai

Step-by-Step Guide to Buying Real Estate in Dubai

Buying property in Dubai can be complex for first-time buyers, investors, and expats. This comprehensive guide will walk you through the real estate buying process in Dubai, including budgeting, financing, legal requirements, and tips to ensure a smooth transaction.

1. Determine Your Budget for Dubai Real Estate

Before you start searching for properties, calculate what you can afford. Consider the following:

  • Agency fee: Typically 2% of the property price.
  • Transfer fee: 4% of the property price payable to the Dubai Land Department (DLD).
  • Mortgage down payment: Usually 25% for expats.
  • Loan interest: Approximately 3–4%, depending on the lender and term.

Your real estate agent can help you finalize your budget and understand all associated costs.

2. Get Pre-Approved for a Mortgage

If you are financing your purchase, obtaining pre-approval is essential.

  • Confirms your budget and strengthens your offer.
  • Bank issues a pre-approval letter valid for 60 days.
  • Helps you act quickly when you find the right property.

3. Choose a Trusted Real Estate Agent

Select a licensed real estate agent with experience in your preferred areas.

  • A professional agent understands the market and your budget.
  • Clearly communicate your preferences: property type, size, and community.
  • Saves time and ensures you view only suitable properties.

4. Start Viewing Properties

Your agent will shortlist properties that match your requirements.

  • Arrange viewings in multiple communities.
  • Compare properties for price, amenities, and location.
  • Ask about nearby facilities, maintenance fees, and developer reputation.

5. Make an Offer

To secure a property:

  • Submit your offer in writing.
  • Include a 10% deposit cheque.
  • Provide copies of passports and Emirates IDs for all title deed holders.

6. Sign the Memorandum of Understanding (MOU)

Once your offer is accepted:

  • Sign the MOU, also known as Form F.
  • Hand over the 10% deposit.
  • The MOU outlines terms and conditions of the transaction.

7. Sales Progression and Mortgage Finalization

If using a mortgage:

  • Bank conducts a property valuation.
  • Obtain the final mortgage offer letter.
  • Seller may need to settle any existing mortgage before NOC application.
  • Average processing time: 6–10 weeks.

8. Apply for the No Objection Certificate (NOC)

  • NOC issued by the developer after all dues are cleared (service charges, fees).
  • Payment may range from AED 500–5,000.
  • Developer may inspect the property and require a refundable deposit.
  • Processing time: Up to 5 working days.

9. Transfer Property Ownership

At the Dubai Land Department (DLD):

  • Pay the purchase price via manager’s cheque.
  • Pay 4% DLD transfer fee and administrative fee (up to AED 4,000).
  • Receive a new title deed in your name.
  • Settle any overpaid service charges with the seller.

10. Receive Keys and Move In

Once ownership is transferred:

  • Collect keys and move into your new home.
  • Ensure utilities and maintenance services are activated.


Frequently Asked Questions (FAQ)

What taxes do property owners pay in Dubai?

Dubai has no property taxes. Owners only pay annual service charges, ranging AED 10–30 per sq.ft depending on the property.

Can I rent out my property?

Yes. Dubai Law No. 26 of 2007 allows property owners to rent out their units. Rental management can be outsourced to a licensed management company.

What rental income can I expect?

Average net rental yields are 5–10% per year, depending on property type, location, and service charges.

Can I buy property without a real estate agent?

Technically yes, but agents provide market expertise and security for deposit handling. Registered agents are highly recommended.

What are Dubai real estate agent requirements?

  • Trade license from Dubai Department of Economic Development.
  • RERA registration for the company and agents.
  • Certification from Dubai Real Estate Institute (DREI).
  • Compliance with RERA Code of Ethics.

How do I register property ownership?

  • Registration at Dubai Land Department (DLD) is required.
  • Off-plan properties are registered via the Oqood system.
  • Registration fee: 4% of property value + document preparation.

Can foreigners own property in Dubai?

Yes, in designated freehold areas like Dubai Marina, Palm Jumeirah, Jumeirah Lakes Towers, and Emirates Hills.