Buying property in Dubai as a foreigner is a straightforward process thanks to investor-friendly laws and a well-regulated market. The emirate welcomes international buyers, allowing them to own real estate in designated areas with full ownership rights. In this comprehensive Dubai property guide for investors, we’ll walk you through how to buy real estate in Dubai step by step – from understanding eligibility and choosing between ready vs. off-plan property, to navigating legal procedures, RERA rules for expats, financing options, and final transfer of the title. Follow these Dubai property purchase steps to ensure a smooth and secure transaction.
Step 1: Select a Freehold Property Area (Eligibility for Foreign Buyers)
A map and list of designated freehold areas in Dubai where foreign nationals can own property. Dubai’s property laws allow foreigners to purchase property in Dubai on a freehold basis, but only in certain areas allocated for foreign ownership . Freehold ownership grants the buyer full rights to the property and land indefinitely, whereas leasehold ownership only provides rights for a term (often 99 years) after which the property reverts to the landowner . As of 2025, there are over 50 designated freehold zones in Dubai open to expat buyers, including popular districts like Dubai Marina, Downtown Dubai, Palm Jumeirah, Jumeirah Lakes Towers ( JLT), Arabian Ranches, and many more . When starting your property search, ensure the neighborhoods you’re considering are in these freehold areas so that you can own the property outright as a foreign investor. It’s also wise to research the community and surrounding amenities (schools, transportation, etc.) to choose a location that fits your goals.
Tip: If a property is in a leasehold area, foreigners can still invest but will only have long-term lease rights, not full ownership. Most international buyers focus on freehold properties to enjoy full title ownership and the ability to sell or rent out without restriction.
Step 2: Decide Between Ready (Resale) vs. Off-Plan Property
Dubai offers two main types of real estate purchases: ready (completed) properties, often via the secondary market (resale from an owner), or off-plan properties directly from developers (under construction or newly launched projects). Each route has its advantages and considerations:
- Ready Properties (Resale): Buying a completed property means you can use or rent it immediately. You’ll negotiate with a private seller (often via an agent), agree on a price, and transfer ownership relatively quickly. There is certainty in what you’re buying (you can inspect the actual unit) and immediate title transfer upon payment. However, resale transactions incur upfront costs like the full price payment (or mortgage) and 4% Dubai Land Department (DLD) transfer fee at the time of transfer.
Off-Plan Properties: Buying off-plan (directly from a developer, for a project under development) often comes with attractive prices or payment plans. Developers may allow you to pay in installments over the construction period, and sometimes offer incentives like DLD fee waivers or post-handover payment plans. This lower initial cost can be appealing to foreign investors. Off-plan purchases are safe when dealing with reputable developers, as Dubai’s Real Estate Regulatory Agency (RERA) requires developers to deposit payments into escrow accounts used only for project construction . Still, there are added risks: project delays or changes can occur, and you must wait until completion (often 2–3 years out) to take possession. Always verify the developer’s track record and financial standing, because some projects have faced delays or even cancellation in rare cases. Choosing a well-known, RERA-approved developer greatly mitigates these risks.
In summary, decide if you prefer a ready-to-go home or investment (resale) versus a new build (off-plan) with future potential. This choice will influence the buying process and timeline significantly.
Step 3: Set Your Budget and Arrange Financing
Before you start serious property hunting, determine your budget and how you will finance the purchase. Dubai property transactions can be done in cash or with a mortgage. If paying cash, you have the benefit of simplicity and stronger negotiating power – cash buyers can often secure a lower price or better terms since their payment is immediate . If you plan to finance through a mortgage, it’s important to obtain a mortgage pre-approval from a UAE bank early in the process. Pre-approval will tell you how much you can borrow and what price range you can afford, making your property search more focused.
For foreign buyers, mortgages in Dubai are readily available. Many major banks (Emirates NBD, HSBC, etc.) offer home loans to both residents and non-residents. Expats who live and work in the UAE can typically borrow up to 80% of the property value (for a first home under AED 5 million), meaning a down payment of around 20% is required. Non-resident foreign investors (who live abroad) may face lower loan-to-value caps – usually able to finance about 50–75% of the property value, requiring a 25% to 50% down payment . In all cases, banks will assess your income, assets, and credit history. Mortgage interest rates in the UAE tend to range around 3.5–5% per annum , and loan tenures can go up to 25 years (terms might be shorter for non-residents).
If you choose to finance, add the mortgage registration fee to your budget (0.25% of the loan amount, charged by the DLD for registering the loan) . Also remember that lenders will require property appraisal and paperwork which can add a bit of time to the closing process. Cash buyers will need proof of funds, while mortgaged buyers should have the bank’s offer letter or pre-approval in hand before making formal offers.
Lastly, account for all purchase-related costs in your budget (see Step 7 on fees). Knowing your financial limits and securing the funds (or loan) up front will enable you to act quickly when you find the right property.
Step 4: Work with a RERA-Registered Agent or Developer
The Dubai real estate market is highly regulated to protect buyers. It’s strongly recommended to work with a professional, RERA-licensed real estate agent when buying, especially in the secondary market. A reputable agent (broker) will have deep local market knowledge, help you find properties that meet your criteria, arrange viewings, negotiate on your behalf, and navigate the paperwork. Make sure any agent you work with is registered with the Dubai Land Department’s Real Estate Regulatory Agency (RERA) – you can ask for their RERA broker number or verify them on the DLD website . RERA certification means the agent is authorized to practice and adheres to professional standards in Dubai.
For off-plan purchases directly from developers, you might either deal with the developer’s in-house sales team or still use a broker who specializes in new developments. In Dubai, when purchasing directly from a developer, the buyer typically does not pay any agency commission, since the developer covers the sales fees . This is a benefit of buying new property – you save on the 2% agent commission that is common in resale deals. However, you should still perform due diligence: ensure the developer is registered and the project has escrow approval by RERA. You can request to see documentation like the RERA project registration number and escrow account details for off-plan projects.
Whether you go with a broker or directly with a developer, choose experienced and trustworthy professionals. A good agent or developer representative will guide you through Dubai’s property purchase rules for expats, explain the required paperwork, and safeguard your interests through the transaction.
Step 5: Search and Inspect Properties (Due Diligence)
With your team in place and budget set, you can begin searching for properties in your chosen areas. Browse online listings (property portals) and work with your agent to identify promising options. When you find a property of interest, schedule a viewing. For ready properties, inspect the unit in person – look at the condition of the property, the building common areas, and the neighborhood. It’s often worth visiting at different times of day to check traffic, noise, etc.
Perform thorough due diligence on any property before committing. This includes verifying the property’s legal status and physical condition. Ask the seller (or developer) for a copy of the title deed and verify its authenticity with the Dubai Land Department to ensure the seller is the rightful owner and the property isn’t encumbered by liens or disputes . If it’s a resale unit, also ask about any outstanding service charges (maintenance fees) – these would need to be cleared by the seller at transfer. If buying off-plan, confirm that the project is approved by RERA and that construction is progressing on schedule; you can even request to see the escrow account information and the RERA project progress report.
It’s highly recommended to conduct an independent property inspection, especially for secondary market purchases. Hire a professional snagging or inspection company to check the unit’s structure, systems (plumbing, electrical, AC), and overall condition. They will identify any hidden issues or necessary repairs, which you could factor into the price negotiation. In off-plan scenarios, you obviously cannot inspect a not-yet-built unit, but you should inspect the show unit (if available) and review the floor plans and specifications carefully. Also, investigate the developer’s reputation – research their past projects for delivery timeliness and build quality, as this can be a predictor of your investment’s outcome. Taking these due diligence steps will ensure you have confidence in the property’s value and condition, and that there are no unwelcome surprises after you buy.
Step 6: Make an Offer and Sign the Sales Agreement
Once you’ve found the right property, the next step is to make a formal offer and agree on terms with the seller (or developer). For a resale property, your agent will help submit your offer to the seller, starting a negotiation on the purchase price, inclusions (furnishings, etc.), and the timeline for transfer. It’s common in Dubai to negotiate, so there may be some back-and-forth before both parties arrive at a mutually acceptable price . When the offer is accepted, both parties will proceed to sign a preliminary contract to formalize the deal.
In the secondary market (resale), this preliminary contract is the Memorandum of Understanding (MOU), also known as Form F. This is a standard Dubai Land Department contract that outlines all the sale terms: property details, agreed price, payment schedule, and responsibilities of buyer and seller. The MOU (Form F) is signed by buyer and seller in the presence of a witness (often at a Registration Trustee office)
At this point, the buyer will also typically pay a 10% security deposit to secure the deal . The deposit is usually held by the broker or the trustee in escrow. It will be applied toward the purchase at transfer or returned to the buyer upon completion – but note that if the buyer backs out of the deal without cause, this 10% deposit can be forfeited to the seller as compensation . The MOU is a legally binding agreement, so be sure you are committed before signing.
For off-plan purchases (buying from a developer), the process is a bit different. Instead of an MOU, you will sign a Sales Purchase Agreement (SPA) or a reservation contract directly with the developer. The SPA serves as the contract for the property unit, including the price, payment installment plan, completion date, and any penalties or remedies if the project is delayed. When signing the SPA, the buyer pays the initial down payment as required (this can range from 10% to 20% or more of the price, depending on the developer’s payment plan). Importantly, for off-plan sales, your payments must go into a RERA-approved escrow account designated for that project – this protects your funds until the property is completed . The developer will countersign the SPA, and you’ll receive a copy of the signed agreement. Make sure you keep all receipts of payments. After signing, the developer will typically register your off-plan purchase with the DLD’s interim registry (Oqood system), which is an official record of your ownership interest during construction.
Whether it’s an MOU or SPA, read all terms carefully (or have a legal advisor review them) before signing any agreement. Ensure the names, prices, payment schedules, and property details are correct. Once signed, congratulations – you are well on your way to owning property in Dubai!
Step 7: Finalize the Property Transfer at DLD
The final step is to legally transfer the property and register you as the new owner with the Dubai Land Department. The procedure differs slightly for ready properties vs. off-plan:
For Ready (Resale) Properties: After the MOU is signed, the buyer and seller (or their representatives) will obtain a No Objection Certificate (NOC) from the property developer. The NOC is required in resale transactions to ensure the developer has no objections to the ownership transfer – basically, it confirms that the seller has paid all outstanding service charges or other dues for the unit . You typically apply for the NOC at the developer’s office, paying a NOC fee (usually between AED 500 and AED 5,000, depending on the developer). The NOC process is usually quick (a few days). Once the NOC is issued, the parties can proceed to the Transfer Appointment at a DLD Trustee Office (or at the DLD office itself).
At the transfer appointment, the buyer, seller, and often the agent meet with a DLD registration trustee to transfer ownership. The buyer will need to bring certain documents and payments, including: official IDs (passport and Emirates ID if applicable) for both buyer and seller, the original title deed (from the seller), the NOC from the developer, and the signed MOU/Form F . The purchase price payment is typically made at this point via a manager’s cheque (a cashier’s cheque) payable to the seller for the agreed amount . If the buyer is using a mortgage, the bank’s representative will also be present to issue the manager’s cheque or otherwise settle the seller’s payment on the buyer’s behalf. The buyer will also pay the required transfer fees to the Dubai Land Department at this time.
Let’s break down the key fees and payments due at transfer in a resale deal:
- Dubai Land Department Transfer Fee – 4% of the purchase price (this is the property registration fee charged by the government) . By law, this 4% is split 50/50 between buyer and seller (2% each) , but in practice it’s common for buyers to cover the full 4% in Dubai unless otherwise negotiated. Always clarify this in the MOU. The 4% fee (plus a small admin fee of AED 580) is paid to DLD to register the new title deed.
- DLD Trustee Office Fee – about AED 4,000 for properties above AED 500k (or AED 2,000 for properties under AED 500k). This is a fixed service fee paid to the registration trustee office for facilitating the transfer. 5% VAT applies to this fee (so AED 4,200 with VAT for higher-value properties)
- Real Estate Agency Commission – typically 2% of the purchase price (plus 5% VAT on the commission) paid to your broker/agent for their services . In secondary market transactions, this is usually paid by the buyer at transfer (some agents take it earlier upon MOU signing). Make sure to have this amount in a manager’s cheque for your agent if applicable.
- NOC Fee – as mentioned, a fee to obtain the No Objection Certificate from the developer, roughly AED 500 to 5,000 depending on the developer . This is often paid by the seller or split, but it should be agreed in advance (the MOU can state who pays the NOC fee). Usually it’s a smaller amount relative to other costs.
- Mortgage Registration Fee (if applicable) – 0.25% of the loan amount, paid to DLD to register the mortgage under your name . For example, if you took a AED 1,000,000 loan, this fee would be AED 2,500. Additionally, there is a fixed AED 290 admin fee for the mortgage registration paperwork
. The bank often arranges this payment at transfer and adds it to your closing costs.
Once all documents are in order and fees are paid, the Dubai Land Department will update the ownership in the registry. The buyer is then issued a new Title Deed in their name, officially making them the owner of the property . Congratulations – at this point, the keys are handed over and the sale is complete!
For Off-Plan Properties: If you bought off-plan, the timeline is different. Your purchase would have been registered via Oqood (the interim registry) after signing the SPA. You do not get a title deed until the building is completed and you have paid the purchase price in full. Upon completion of the project, a
handover process takes place: you’ll inspect the finished unit, pay any remaining installments, and the developer will obtain a completion certificate. Then you and the developer complete the transfer at DLD to get the title deed issued in your name (the 4% DLD fee would typically have been paid at the time of SPA/ Oqood registration). If you had a payment plan that continued post-handover, the title might be deferred until fully paid or the bank might finance the remainder at that point. Working with the developer and possibly your bank, you’ll finalize the registration and receive the title deed once the property is ready. Be mindful of any service charges that commence on handover for new properties and ensure you budget for those ongoing costs.
After acquiring the title, don’t forget practical post-purchase steps like setting up utility accounts. You will need to open/transfer DEWA (Dubai Electricity & Water Authority) accounts for electricity and water, and arrange cooling services if the building has district cooling. Also, if you intend to rent out the property, you may register with Ejari (tenancy contract registration system) when you find a tenant. These administrative tasks are straightforward and can be done once you are the legal owner.
RGP Properties – Your Trusted Partner in Dubai Real Estate
Investing in Dubai’s vibrant property market can be an exciting venture, but having the right guidance is key. RGP Properties is here to assist you at every step of your buying journey. With years of experience helping international clients, our team of RERA-certified professionals provides end-to-end support – from finding the perfect property to negotiating the best deal, handling paperwork, and ensuring a smooth transfer. We pride ourselves on transparency, local market expertise, and personalized service for each client.
Ready to take the next step? Whether you’re looking for a luxurious villa or an attractive investment apartment, RGP Properties will make the process of buying property in Dubai as a foreigner hassle-free. Contact us today to get expert advice on Dubai real estate opportunities tailored to your needs. Let RGP Properties be your trusted partner in making your Dubai property investment a reality.
