Buying Property in Dubai: Step-by-Step Process Explained

Dubai has become one of the world’s most attractive destinations for real estate investment. With a booming economy, tax-free environment, and luxurious lifestyle, thousands of expats and investors are drawn to its property market every year. However, navigating the buying property in Dubai process can feel overwhelming if you are not familiar with the rules, regulations, and legal procedures.

In this article, we break down each step clearly, highlight the documents and fees involved, and provide tips to make your property purchase smooth and stress-free.

1. Who Can Buy Property in Dubai?

Not everyone is aware that Dubai offers different property ownership rights depending on your nationality and residency status.

• •UAE Nationals and GCC Citizens can purchase property anywhere in Dubai.
  
  
• •Expats and Foreign Investors can buy only in designated freehold areas such as Downtown Dubai, Dubai Marina, Jumeirah Lake Towers, Palm Jumeirah, and many more.
  
  
• •Freehold vs Leasehold: Freehold gives you full ownership of the property and land indefinitely, while leasehold typically allows ownership rights for 99 years.
  
  

This is the first step in understanding the buying property in Dubai process—knowing where and how you are legally allowed to buy.

2. Set Your Budget and Arrange Finance

Before you begin your property search, it’s important to understand how much you can afford.

• –Mortgage Pre-Approval: If you are financing your purchase with a mortgage, obtaining pre-approval from a bank is crucial. This gives you a clear budget and ensures sellers take your offer seriously.
  
  
• –Deposit Requirements: Expats generally need to put down at least 20–25% deposit for properties under AED 5 million, while UAE nationals may require less.
  
  
• –Additional Costs: Apart from the property price, you must budget for:
  
  
  • –Dubai Land Department (DLD) transfer fee: 4% of the property value.
    
    
  • –Trustee office admin fee: AED 4,200.
    
    
  • –Real estate agent commission: 2% of purchase price.
    
    
  • –Mortgage registration fee: 0.25% of loan amount.
    
    

Always plan for at least 7–8% of the property value as additional costs in your budget.

3. Choose the Right Property

The Dubai real estate market offers endless options, from luxury villas to modern apartments. When choosing a property, consider:

• –Purpose: Are you buying for investment or to live in?
  
  
• –Location: Areas close to schools, metro stations, and business hubs hold higher value.
  
  
• –Type of Property: Ready-to-move-in vs off-plan (under construction).
  
  

Here’s a quick comparison:

Factor	Ready Property	Off-Plan Property
Availability	Immediate move-in	Delivered in 2–4 years (depending on project)
Price	Usually higher	Lower, often with flexible payment plans
Risk	Low – you see what you buy	Higher – depends on developer reputation
Rental Income	Can start immediately	Rental income only after handover
Financing	Mortgage available	Limited mortgage, mostly post-handover

4. Make an Offer and Sign the MoU

Once you find the right property, the next step in the buying property in Dubai process is making an offer.

• -Both buyer and seller agree on the price.
  
  
• -A Memorandum of Understanding (MoU), also called Form F, is signed at the Dubai Land Department.
  
  
• -The buyer usually pays a 10% deposit to secure the deal, held in escrow until the transfer is complete.
  
  

5. Legal and Financial Checks

Due diligence is critical before proceeding further:

• •Verify the Title Deed: Ensure the seller is the legal owner.
  
  
• •Check Outstanding Service Charges: These must be cleared before transfer.
  
  
  
• •Bank Valuation: If you are using a mortgage, the bank will conduct its own valuation of the property.
  
  

This stage ensures that there are no hidden surprises or disputes later in the transaction.

6. Signing the Sale Agreement and Obtaining NOC

After the MoU and checks, the following steps occur:

• -The seller applies for a No Objection Certificate (NOC) from the developer.
  
  
• -The NOC ensures there are no outstanding fees or liabilities.
  
  
• -The buyer, seller, and agent meet at the developer’s office to finalize paperwork.
  
  

7. Transfer of Ownership at Dubai Land Department (DLD)

This is the final and most important step of the buying property in Dubai process:

• -The buyer pays the full purchase price (via manager’s cheque if not using a mortgage).
  
  
• -The DLD transfer fee of 4% and admin fee of AED 4,200 are paid.
  
  
• -Once complete, the DLD issues a new Title Deed in the buyer’s name.
  
  

Congratulations—you are now the official property owner in Dubai!

8. Post-Purchase Considerations

Owning a property in Dubai comes with ongoing responsibilities:

• –Service Charges: Annual fees for building maintenance and facilities.
  
  
• –Utilities Setup: Register with DEWA (Dubai Electricity and Water Authority) and telecom providers.
  
  
• –Insurance: Protect your property with home and contents insurance.
  
  
• –Long-Term Planning: If it’s an investment, decide whether to lease short-term (holiday home) or long-term.
  
  

If you are buying a property off-plan then it is vital to have full disclosure from the developer on the payment plan, completion date, default clauses and the location/ inclusions of your property. Whilst these can be negotiated directly with a developer my recommendation is again to work with an experienced agency who can ensure that the right questions are asked at the right time. You will be required to pay a registration fee on your off-plan purchase, but this is to ensure your property is registered with the Dubai Land Department and that you are issued with a Oqood pre-registration title deed. Ensure that you go through the Sale and Purchase Agreement with a fine-tooth comb as they can often be more favourably to the developer. Not all banks support all off plan projects, so if you are mortgaging an off-plan project understand your options. Most importantly ensure that the developer and development is registered with the DLD and that it is supported with a full escrow to protect your investment as it is being paid during construction.

Whilst these can be negotiated directly with a developer my recommendation is again to work with an experienced agency who can ensure that the right questions are asked at the right time. You will be required to pay a registration fee on your off-plan purchase, but this is to ensure your property is registered with the Dubai Land Department and that you are issued with a Oqood pre-registration title deed. Ensure that you go through the Sale and Purchase Agreement with a fine-tooth comb as they can often be more favourable to the developer. Not all banks support all off plan projects, so if you are mortgaging an off-plan project understand your options. Most importantly ensure that the developer and development is registered with the DLD and that it is supported with a full escrow to protect your investment as it is being paid during construction.

In saying all of this completion of a sale and transfer can be completed in as little as 2 weeks. Remember it is not all about the price and the property it is about the circumstances of the purchase. Invest in the right information, agency and mortgage broker, and the right property will be yours.

Buying a home in Dubai is a rewarding investment, but it requires a clear understanding of the rules, fees, and steps involved. By carefully following each stage of the buying property in Dubai process—from budget planning and legal checks to transfer of ownership—you can ensure a smooth and hassle-free purchase.

Working with experts like Mortgage Finder can make the process even easier, especially if you need help securing a mortgage as an expat. Our advisors guide you through every step, saving you time and helping you find the best financing options.

By Zarah Evans, Managing Partner at Exclusive Links Real Estate Brokers