How to buy property in Dubai if you're not a resident: full process

Foreigners can buy residential properties in designated leasehold or freehold areas, with a straightforward purchasing process.

Dubai's residential market became accessible to foreigners in 2002 and has since attracted many expat and international buyers. Foreigners can purchase property in leasehold areas, usually close to the city center, or in freehold areas, which are spread throughout the emirate. Over time, the availability of units for foreigners has significantly increased, with a wide range of apartments, villas, and townhouses currently on the market.

The emirate’s tax-free status has been a major draw for foreign investors. Despite the introduction of a Value Added Tax in the UAE in 2018, residential properties in Dubai remain tax-free. These properties are either zero-rated or completely exempt from tax.

Another advantage of investing in Dubai properties is the availability of a residential visa for foreigners (and their dependents) who invest at least AED 1 million for a 3-year visa or AED 2 million for a 5-year or 10-year visa. Additionally, retirees over 55 are eligible for a 5-year renewable visa if they purchase property worth AED 2 million or more.

The buying process is quite simple. Foreign buyers only need a valid passport – a resident visa is not necessary. They can work with local real estate agents or deal directly with developers to find the ideal property and complete the required formalities.

According to Knight Frank, the average property transaction in Dubai takes about 30 days to complete, starting from the date the Agreement for Sale is signed.

Dubai offers a wide range of apartments, villas, and townhouses for sale in freehold areas, with many developers and communities to choose from. Explore Dubai listings on Properstar to start your search.

Here are some key criteria to consider:

Apartment or Villa/Townhouse?

Residential apartments are often found along major roads like Sheikh Zayed Road or near the coast in areas such as Jumeirah Beach Residence, Dubai Marina, Greens, and Jumeirah Lake Towers. Villas are generally located inland in communities like Emirates Hills, Meadows, and Springs. Some villa communities are further inland, such as Arabian Ranches, Dubai Sports City, and Jumeirah Village Circle. Note that some inner communities also have numerous apartment buildings.

Ready-to-Move-In or Off-Plan?

Both apartments and villas/townhouses are available as off-plan investments, often at attractive rates. Developers typically provide community plans and floor plans, and may offer show flats or villas to showcase the expected space and finish.

Off-plan properties come with risks.
Delays in construction and handover are common, and occasionally projects may be stalled or cancelled. Payment for off-plan properties is usually tied to construction progress, with various schemes from different developers. Learn more about pitfalls to avoid.

Investment or Family Home?

If you’re buying for investment, check current rental yields using tools like Property Monitor’s Rental Index and the Dubai Land Department’s Rental Calculator. Consider the age of the building or villa, which can affect resale value.

For a family home, consider the following factors:

• Proximity to Work and Schools: Convenient access to your workplace and preferred schools.
• Rush Hour Traffic: Evaluate traffic conditions during peak hours.
• Parking Availability: Check parking spots included with the property and options for paid and free parking within the community. Parking can be a premium in areas like Dubai Marina and JLT.
• Public Transportation: Access to Dubai Metro, Tram, and bus networks.
• Nearby Amenities: Proximity to supermarkets, clinics, parks, etc.
• Community Maintenance: Look at the cleanliness and quality of maintenance of community amenities.
• Amenities within the Community: Features like gyms, swimming pools, children’s play areas, and event spaces.
• Community Maintenance or Service Fees: These fees cover community upkeep and staff salaries, typically calculated per square foot. They may be charged annually or quarterly.
• ‘Chiller’ Fees: Some buildings have a minimum monthly fee for air conditioning services, regardless of usage.
• Community Rules: Be aware of any restrictions on renovations, service elevator usage, or other rules that may impact your living experience.

Importance of the Developer/Community

Research the developer or community to assess project scale, maintenance quality, historical delays, and resident reviews. This can help you gauge the completeness of newer communities regarding essential amenities like water, electricity, and local services.

Major developers in Dubai include Emaar, Meraas, Nakheel, and DAMAC Properties.

1. Viewing or Inspection of the Property
Use a RERA-licensed agent for property viewings. Avoid multiple agents for the same property to prevent commission disputes. Ensure the seller has a valid title deed. For authentication, you can use the Dubai Land Department’s services.

2. Agreement of Sale or MOU
A deposit, usually 10% of the sale value, is paid to the seller. If buying directly from the developer, brokerage fees typically don’t apply.

3. Securing Financing
Clear any existing mortgage or payments on the property. If using a new mortgage, the buyer’s bank will conduct a valuation. Foreign buyers usually need a 25% down payment.

4. Obtaining a No Objection Certificate (NOC)
The seller must obtain an NOC from the developer. Ensure all maintenance and service fees are paid. The NOC may involve a nominal fee, and a refundable deposit might be required by the developer.

5. Registration with Dubai Land Department (DLD)
Both buyer and seller must be present to complete the registration. If unable to attend, a power of attorney can represent them.

6. Final Payment and Additional Fees
Make the final payment and cover additional fees: a. 2% brokerage fee to the real estate agent
b. 4% transfer fee to the DLD (usually split as 2% from buyer and 2% from seller)
c. Approx. AED 4,000 registration fee to the DLD for properties over AED 500,000
d. Approx. AED 500 fee to the DLD for issuing the title deed
e. Mortgage registration fees to the DLD (0.25% of the loan value, if applicable)

Be prepared to pay any annual or pro-rata maintenance/service fees to the developer or owner’s association.

7. Issuance of the Title Deed
The title deed, issued by the DLD, confirms ownership. Once issued, the keys are handed over to the buyer.

After the purchase, update ownership records with DEWA (Dubai Electricity and Water Authority). The seller’s signature might be needed, and a new connection fee will apply.

The process for purchasing an off-plan property from a developer involves several distinct steps:

1. Inspect Property Plans or Visit the Site
Review the property's plans and visit the construction site to check progress. You may also see a show flat or show villa to get a sense of the finished product.

2. Confirm Project Registration with RERA
Ensure the project is registered with RERA (Real Estate Regulatory Agency). RERA mandates that developers must own 100% of the land and secure a bank guarantee for 20% of the project’s value or complete 20% of the construction before selling off-plan units. Deposits and payments must be made into a RERA-approved security account.

3. Submit Reservation/Application Form to the Developer
Complete the reservation or application form provided by the developer. This form will include the basic terms of the sale, payment plan, and your personal details (including a copy of your passport).

4. Select Your Unit
Choose the specific apartment or villa/townhouse you wish to purchase.

5. Make the Initial Deposit
Pay the initial deposit, which typically ranges from 10% to 50% of the purchase price. Subsequent payments are generally tied to construction milestones, though this can vary by developer and payment plan.

6. Obtain Initial Agreement of Sale (‘Oqoodi’)
Complete the registration process at the developer’s office. You will receive an initial agreement of sale, known as ‘oqoodi’. This document certifies ownership and may incur DLD fees, such as the 4% transfer fee and other administration costs.

Stay informed about the latest property rules and regulations in Dubai. Contact the Dubai Land Department (DLD) and RERA for the most current procedures. Both organizations are easily accessible via their websites, phone, or in person.