Everything you need to know before investing in Dubai

Updated: Jan 5

Please note that as a foreigner you are only allowed to buy real estate in the created Designated Areas of Dubai. These options have been carefully chosen by the Crown Prince to give non-UAE and non-G a home in the return.

Now that we've got that out of the way, let's take a look at how to get your next home/real estate investment ready. So basically, when it comes to buying a property in Dubai, the following legal steps must be taken according to the real estate law.

1. Conclusion of an Agreement between Buyer and Seller

After doing your search, finding the right property, doing extensive research on the developer, the area of ​​Dubai, what the ROI is and more, you can move on to the first step which is to negotiate the online terms of sale with the seller. You can complete this step without the help of a real estate agent legal counsel. The rest has to be done by a reputable real estate agency in Dubai of legal firms that do it according to the real estate law.

2. Signing A Sales Agreement Under Real Estate Law

Later is the signing of the sales agreement, also known as the Memorandum of Understanding (MOU). This document in Dubai is called Contract F and it is available on the Dubai Land Department website. The standard in Dubai is a 10% deposit in the property to be paid to the seller. this step is complete, you are halfway through the process.

3. Apply for a Certificate Without Objection (NOC)

Next, you will meet the seller in the developer's office. The reason for this meeting is to request and pay for a Certificate of No Objection (NOC) for the transfer of ownership. The NOC is issued by the developer, but after checking that there are no outstanding charges for the property in the form of service charges.

4. Realize the Transfer of Ownership With Dubai Land Department

Once the NOC is obtained, meet the seller at the Dubai Land Department office to complete the transfer. DLD will ask you to pay for the property in the form of a check from a manager. This check must be paid to the seller on the transfer date. Finally, a brand new title deed is drawn up in your name and you officially become the owner of a property in Dubai.

The Different Ways To Buy A House In Dubai

If you can't pay for a home in cash, you'll need to apply for a mortgage.

Buying real estate as an expat may sound complicated, with several obstacles that can cripple small players. But the Dubai Land Department with other legislative bodies in charge makes the real estate purchase process smooth and fast.

Should I Buy A Real Estate On Plan?

Although compared to other methods, it takes time. It is actually the easiest way to buy real estate in Dubai.

The buyer must submit an application form to the developer.

After approval of the application, the buyer will go to the developer's sales center on a pre-scheduled day to choose the unit and pay the first deposit.

Depending on the level of completion, the buyer can wait 2 to 3 years before receiving the property. The developer provides the completion date.

Why Should You Buy a Home on the Secondary Market?

This way is the fastest way to acquire a property in Dubai, but this process is somewhat complicated, which involves quite a bit of financial expense.

An investor who wants to buy a property where the seller has a mortgage must be able to pay off the seller's mortgage before collecting the title deed from the land department.

Once the property has been viewed, the buyer presents an offer to the seller and once this offer is accepted, the seller's agent prepares the memorandum of understanding (contract), which lists all the costs and responsibilities of the parties.

The buyer then pays a 10 percent deposit in the seller's name to secure the property.

Depending on whether the buyer pays in cash or through a mortgage, the next step involves the buyer's bank performing a valuation procedure to inspect the property and make sure it is safe enough.

Once the final approval is given and the buyer receives it. The seller will then apply to receive the developer's Certificate of No Objection (NOC).

An appointment is then made with the Land Department to complete the transfer.

In all registered processes, the buyer must then pay 2% and AED315 to the Dubai Land Department along with the purchase price to the seller and commission to the agent.

The buyer then receives the title deed, which is in his name, along with the keys and access cards of the new house.

How Can I Secure the Pre-Approval of a Mortgage?

If you cannot pay for the house in cash, you will need to apply for a mortgage. To get a mortgage approval, here are the simple documents you need to prepare:

A salary letter from your employer.

The salary slips you have received.

Bank statements for the past six months.

Passport copy with a photo and visa page.

Copy of Emirates ID.

A copy of credit card statements.

Proof of address.

The pre-approval phase of a mortgage takes more than seven days for salaried borrowers and longer for the self-employed.

What Are the Different Types of Property Prices?

Van Price: The asking price of the house is the list price that can be negotiated.

Selling price: The selling price is the price that the owner is happy with.

Appraised Value: The value the broker provides by comparing the value of the property to other properties in the market.

What Other Costs Should Be Considered?

When it comes to selling:

Mortgage settlement (cancellation costs)

Clearance of service costs / maintenance costs

Settlement of DEWA / District cooling

The developer's NOC if necessary

Transfer Fees Paid to the Land Department


When it comes to buying:

Deposits according to purchase agreement between buyer and seller

Connection for electricity and water boards

Mortgage application fees if needed

Community fees

Miscellaneous administration costs to the Land Department


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