Buying Property in Dubai

A Complete Guide to Buying a Property in Dubai

Dubai is a dream city for people all over the world. The city offers a luxurious and fantastic lifestyle. With beautiful beaches, modern shopping malls, fabulous restaurants, designer shops, and more, Dubai appears to be a paradise for an enjoyable living.

Lured by the city’s richness, many foreigners have relocated to Dubai and made the city their home. If you are considering relocating to the city, you can even think of investing in a property in Dubai instead of staying on rent.

But before you set out to buy a property in the majestic city, you need to know how to buy property in Dubai. It would help if you did not fall behind in thoroughly understanding everything about investing in a city’s property.

So, the following are the various aspects of property investment in Dubai that will help you to make better decisions in your property buying process:

Types of Properties

For foreigners wanting to buy a property in Dubai, there are three types of properties to consider—commonhold, freehold, and usufruct properties.

Commonhold Properties

Commonhold properties often include apartments, and the owner of a commonhold property can even sell or rent the property out, apart from passing it through as inheritance.

Freehold Properties

Freehold properties are the common types of property ownership in the city. As with the commonhold properties, freehold property owners can sell or rent the property and even pass it through as inheritance. You can purchase freehold Dubai properties only from a developer approved by the UAE government.

Usufruct Properties

Usufruct properties are a kind of long-term lease of the property. The lease lasts for between 10 and 100 years. You are free to do anything with the property during the lease period, but you cannot destroy it.

Where Can You Buy Property in Dubai?

You can purchase a property in any freehold land in Dubai that is authorized by the relevant governing bodies of the UAE to undertake property transactions. Ensure you verify everything with a trusted real estate agent or legal representative before you finalize where to invest in Dubai real estate. Keep in mind that the Dubai Land Department (DLD) manages all property transactions.

How to Find the Right Property in Dubai?

When you search for a property in Dubai for purchasing it, consider many factors before you finalize the purchase. Refrain from jumping on to the purchase straightway as that is not a good thing. You might have some specific interests in your prospective property, but those are not enough. It will help if you consider some particular factors during your property search, such as:

Check Different Locations

The first thing to do in your property search is to check out various city locations to find out the best place to buy property in Dubai.

Whether you plan to buy a property in the city for you and your family or rent it out, it is essential to choose the right location.

Suppose you are relocating to the city and purchase a property in the wrong location. In that case, your family might eventually conclude that moving to Dubai was not the right decision for you. Likewise, it is also crucial for you to buy a property for renting out in the right location as that will help to attract tenants, impacting your investment.

Therefore, choose the location wisely before making the purchase.

Assess Traffic Levels

Traffic in Dubai is heavy. And it causes problems for many people. You will see heavy traffic on the roads to Dubai’s center daily. So, if you need to commute into the city every day, look for a property within the city’s vicinity.

Parking Facility

It is an important consideration when buying a property in Dubai. If the property you choose does not have indoor or covered parking, then the extreme heat from the sun will heat your car, making it challenging for you to drive.

What Documents Do You Need to Buy Property in Dubai?

Keep the following documents ready as you will need them while buying a Dubai property. You will need your passport, a legal ID, and address proof. But, make sure you consult with the Dubai Land Department before finalizing any transactions.

The Dubai Property Market

The city has a matured property market. You can see all kinds of houses for sale in Dubai.

Property prices have fallen in recent years in comparison to the historical prices.

In 2002, the UAE government removed all restrictions and allowed people of all nationalities to buy, sell, and rent property in Dubai. And with many apartments for sale in Dubai, foreigners can easily purchase a property for living or renting out in the city.

In the UAE, there are two options for property purchases: off-plan and secondary. Off-plan properties are under construction so that you can purchase them at a future date. These properties are usually sold by the developer and through trusted real estate brokerages.

Secondary properties are resale of existing properties by the respective owners. Usually, trusted brokerages transact such properties.

If you are thinking about where foreigners can buy property in Dubai, then it will help if you know that they can purchase any freehold property in the city, according to the existing laws. There is no need for the buyer to have UAE citizenship or residency status. Besides, there is also no need for any special permits for purchasing a property in the city.

How to Invest in Right Property in Dubai?

When you invest in a property in Dubai, ensure that it is the right property. Keep in mind that any property investment in the city is a tricky affair, so you should keep yourself aware of several things beforehand.

Although the city’s property market presents a stable investment environment, there are many factors to consider:

Down Payments

There are upfront costs associated with property purchases in Dubai. Buyers need to pay a 25 percent down payment for their property purchases. There are also administrative costs they cannot avoid. They also have to pay the broker commission and a mortgage processing fee.

The Dubai Land Department (DLD) also charges a transfer fee, which involves the payment of AED 580 and four percent of the property value. The DLD sets a period for the buyer to pay the fee. If the buyer fails to pay the fee within that time, the DLD doubles the fee and imposes a penalty of AED 10,000.

Other Costs

There will also be annual maintenance fees that you cannot avoid. Besides, there will also be a yearly fee that varies on the home’s square footage.


It is good to do a bit of research to locate the right property in Dubai. You can avail of a trusted real estate agent’s services in this context. You can also go through the leading property websites to search for the city’s right property.


Owning a property in Dubai is a dream of many people worldwide. But, do not buy a property in haste. Do adequate research and seek advice from knowledgeable people before you set out to purchase. If you plan to buy a property for renting out, get acquainted with the tenant rights in Dubai. It will help you to deal with tenants better. Besides, the cost of buying a home in the city can go up significantly, so calculate all the possible expenses before you make the purchase.

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