How to buy a property in Dubai is relatively simple. Whether you’re purchasing for personal use or as a real estate investment to earn income, you just have to follow the four-step legal process to own a property.

Start the property buying process from a property search, choose which location you want to buy in, the size, and proximity to schools, restaurants, hospitals, and transportation. Then, consider your budget along with your requirements.

We recommend getting into this process with a reputable real estate agent. He can better help you understand the Dubai property buying rules, the best areas to buy property in Dubai, affordable communities in Dubai, the negotiation process, and guide you through administrative and legal processes.

How to Buy a Property in Dubai

Can Foreigners Buy Property in Dubai?

If you are an export or foreigner, the very question that arises in your mind is: Can a foreigner buy property in Dubai? The answer is, whether you are from the UK, USA, India, or from anywhere around the world, Dubai welcomes you with open arms.

Under Dubai property law, Article (4) of Law No. 7 of 2006, UAE nationals and citizens of GCC countries can purchase real estate anywhere in Dubai. However, the foreigners are limited to only freehold and leasehold zones. 

The non-designated areas, which include older parts of Dubai and the parts which are used for government and military use, are available for UAE nationals and GCC nationals, not open for foreign buyers.

Difference Between Freehold and Leasehold Ownership

The difference is that freehold means you completely own the property and the land forever. Leasehold means you can use and own the property, but only for a limited time, usually up to 99 years.

Eastern Dubai: Mirdif, Ras Al Khor, Al Quoz Industrial Area

  • Central Dubai: Sheikh Zayed Road, Al Jaddaf, Emirates Hills
  • Western Dubai: Dubai Marina, Palm Jumeirah, Al Barsha South 2–3
  • Southern Dubai: Jebel Ali, Palm Jebel Ali, Al Sufouh, The World Islands
  • Eastern Dubai: Mirdif, Ras Al Khor, Al Quoz Industrial Area

Documents You Require to Buy a Property in Dubai

Before stepping onto the property ladder in Dubai, first make sure that you are holding the following documents.

  • Passport
  • Visa( required above a certain threshold value)
  • recent bank statements 
  • proof of income 
  • No Objection Certificate (NOC) from the developer
  • Purchase agreement 
  • Details about the property 
  • Payment information 
  • The seller’s identity proof. 

How to Buy a Property in Dubai-The Legal Steps

There are only four steps involved in purchasing a property, whether it’s a profitable real estate investment or owning a home, anywhere in Dubai.

1- Prepare the Buyer/Seller Contract

After careful search, when you have decided which property you are interested in, you will negotiate with the seller about prices, the payment terms, and either you want to purchase on cash or mortgage. While cash purchase is more influential in which you can push the seller towards the lower price.

After deciding all the terms, if you are confident then you can draft a comprehensive contract between you and the seller including all the terms to avoid any future misunderstanding. Then don’t involve any lawyer or real estate agent, otherwise hire their services.

2- Signing the Agreement of Sale(MOU)

After deciding on all the terms, the buyer and the seller must sign the sales contract called the Memorandum of Understanding. You can download this Form F from the official website of the Dubai Land Department. 

You can include all the mutually understood terms in this contract, witnessed in the presence of the registration trustee’s office. At the time of signing the contract, the buyer has to pay a 10% security deposit that is refunded to him after the completion of the transaction.

3- Apply for No Objection Certificate (NOC)

When you buy any property in Dubai, two are the key documents: Form F and the NOC. When the buyer completes all the payment and the terms and conditions, then the seller, real estate agent, and the buyer meet at the developer’s office.

Buyer asks the developer to issue a No Objection Certificate to transfer the property ownership. This is the proof that he has completed all the payment and no obligation is left to fulfill to own the property.

4- Initiating Ownership Transfer with DLD

The last legal step of buying property in Dubai is to get the new title deed in your name by transferring ownership at the Dubai Land Department office, after receiving the NOC. The procedure will be completed the same day if both parties visit the office with the following documents in their hands.

  • A payable cheque
  • The MOU or the Form F
  • The NOC
  • And the original identification of both the buyer and the seller, like their IDs and passports.

Factors to Consider While Purchasing Property in Dubai

  • Always work with a real estate agent who is officially registered with the RERA.
  • If any of your documents are in another language, translate them into Arabic, have them certified, and submit them properly.
  • The property transfer should be completed within 60 days from the date when you have signed the MOU.

How to Find Attractive Property to Buy in Dubai

The first step in making a profitable decision when buying property in Dubai is selecting the right property in the right location. Apart from contacting Dubai real estate agents, here are some of the trusted property finders in Dubai that can keep you informed about the latest profitable investment opportunities in Dubai:

  • Rightmove
  • Bayut
  • Zoopla
  • Allsopp & Allsopp
  • Property Finder
  • Sotheby’s International Realty

How to Buy a Property in Dubai for Foreign Investors?

Foreigners don’t need a visa for this purpose, yet they have to provide documents like a passport, proof of address from their native country, and some additional ID verification. 

Then you will follow the same legal steps like getting NOC from the developer and completing the transaction through the DLD Trustee Office.

How to Purchase Property In Dubai Without Down Payment?

Buying any estate in Dubai means you have to spend too much upfront price in terms of down payment. However, there are certain ways to work around this rule. Let’s figure it out in a bit of detail.

1-Negotiating With Developers

Firstly, if you are short of cash, you can negotiate with your seller to reduce the down payment. Sometimes they have some promotional offers in which sellers agree on lesser down payment to close a sale. You can avail such kinds of ongoing promotions.

2-Flexible Payment Plans

The other way is to ask for a flexible payment plan. This option looks very affordable for a buyer, in which you pay less in the beginning but pay the large installments when the property is near to transfer.

3-Rent-to-Own Contracts

This is a very common way where you take a property on rent under a rent-to-own contract. You pay the rent, but a specific portion of the rent is considered as the payment to purchase that property. So, after a tenure, that property transfers in your ownership without paying a huge amount in one go.

4-Property Exchange

For buyers who have a large equity in their current property, they can exchange their existing property for a new one under consideration. So in this way, they don’t need to pay down payments.

5-Liquidating Other Assets

If you can’t pay a large upfront amount, but have other assets in your equity like stocks or bonds, you can use these assets as collateral to pay down payments.

6-Purchase by Partnerships and Joint Ventures

Another way to manage the down payment is purchasing the property in partnership or joint ventures. In this form, the financial burden of huge upfront payment is shouldered by all the partners.

7-Crowdfunding

Some financial institutions help buyers through crowdfunding or private lending. They lend the buyer a specific portion of the purchase price to remove the need for an upfront price.

Common Mistakes in Buying Real Estate in Dubai

If you’re thinking about buying any real estate Dubai, make sure you avoid these common errors:

  • Not fully understanding the contract terms
  • Skipping proper research about the property, location, or market trends
  • Not conducting a full inspection before any kind of investment in Dubai real estate.
  • Not knowing the complete Legal Steps to Buy Property in Dubai
  • Not Understanding the Risks of Off-Plan Property

Off-plan property means buying a home that’s still under construction. You usually deal directly with the developer and pay in stages. Many buyers prefer this option because the deal is mostly closed at lower prices and flexible payment plans. So, you must research how to buy off plan property in Dubai, along with the track record of the developer.

FAQs

What is the best way to buy a property in Dubai?

The best way to purchase property in Dubai is to

  1. Start by assessing your affordability.
  2. Find the best property that is a profitable investment.
  3. Save or arrange the funds for the upfront/down payment. If you plan to mortgage, secure a preliminary mortgage approval.
  4. Once everything is set, make an offer to the seller.
  5. Apply for financing if you are mortgaging the property, or arrange for cash if paying outright.
  6. Complete the legal steps to finalize the property ownership.

How long does the process of buying real estate in Dubai usually take?

It usually takes 2 to 10 weeks to buy property or real estate in Dubai. If you are purchasing through a mortgage, this period can be a bit longer.

How to buy a property in Dubai without an agent?

If you don’t want to involve any agent in your property deal, then you can only buy or sell property in some specific communities where some individuals or the developers are selling their units.

In Dubai real estate, what exactly is a title deed?

The title deed is a legally binding document issued by the LDL, Dubai Land Department, certifying the ownership of the property in the name of its holder.

What fees do you have to pay on top of the property price in Dubai?

When you buy real estate in Dubai, there are a few admin related costs that you should be ready to pay:

  • Dubai Land Department (DLD) Fee: 4% of the property price, plus a small admin fee (AED 430 for land, AED 40 for off-plan, or AED 580 for apartments and offices).
  • Addition, you have to pay the following Property Registration Fee:
    • AED 2,000 + 5% VAT if the holding worth is under AED 500,000
    • AED 4,000 + 5% VAT if it’s over AED 500,000
  • Title Deed Issuance: AED 250
  • Agent’s Fee: Usually 2% of the property price
  • Usually these costs are paid during the final step of the property transfer.

Conclusion

The best way to buy property in Dubai, both for residents and foreigners, is to start from your budget assessment and then find a property that matches your budget. You can decide either to own with cash or use a mortgage plan. Then you enter into a sales contract with the seller and sign the MOU. 

It is later followed by getting the NOC from the developer and then getting the title deed, a legal document showing the ownership. It’s recommended to contact a registered real estate agent, and don’t forget to consider off-plan property before making your final decision.