Invest in Dubai Real Estate: Step-by-Step for Foreign Buyers

You are looking at Dubai because it is liquid, international, and well regulated. Foreigners can buy freehold property in designated zones, there is no annual property tax on homes, and the registration process is centralized under the Dubai Land Department (DLD). 

Below is a practical guide relevant to both private buyers and corporate investors.

What You Can Own and Where

Foreigners, whether individuals or companies, can acquire freehold, usufruct, or long lease rights in designated freehold areas of Dubai. The legal backbone is Dubai Law No. 7 of 2006 and Regulation No. 3 of 2006, which set the rules and maps for non-UAE ownership in specified zones such as Downtown, Dubai Marina, Palm Jumeirah, JLT, Business Bay, and many more. 

Corporate ownership is allowed, but the Dubai Land Department policy generally requires the title to be registered to a locally incorporated entity accepted by DLD. In practice, this includes certain free-zone and offshore vehicles, and, by policy and memoranda, DIFC SPVs and RAK ICC entities for freehold areas. Always confirm eligibility for your exact offshore vehicle and property.

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1. Decide Your Investor Profile and Holding Structure

Individual

• Easiest route. Title can be in your personal name.
  
  
• If you are a non-Muslim owner and want your estate plan to follow common-law style distribution, consider DIFC, a special financial free zone in Dubai that uses an English-language, common-law legal system, separate from the UAE’s general (Sharia-based) legal system.

Companies and funds

• Using a corporate or investment vehicle to own property or conduct business rather than holding it in your personal name has the following benefits: ring-fence liability, partnering with co-investors, share-deal exits, and streamlined succession planning.
  
  
• Typical approaches: UAE mainland company, DIFC SPV, JAFZA Offshore, or RAK ICC company or foundation, subject to DLD acceptance for the asset and location.

Developers entering Dubai

• To sell off-plan units you must register the project with DLD and comply with the escrow regime under Law No. 8 of 2007. Buyer payments must go to a dedicated escrow account released in stages against construction progress.

2. Set a Realistic Budget: The Full Cost of Buying

Beyond the price, factor these one-time costs:

• DLD transfer fee: 4% of the registered price.
  
  
• Trustee office fee: typically AED 2,000 to AED 4,000 (≈ USD 545 to USD 1090).
  
  
• Admin and map/title issuance fees: small fixed amounts at transfer.
  
  
• NOC from the developer for resales: commonly AED 500 to AED 5,000 (≈ USD 136 to USD 1,360).
  
  
• Mortgage registration: 0.25% of the loan amount.

Ongoing costs

• Service charges for building and community maintenance. Check the RERA Service Charge Index before you buy.
  
  
• Municipality “housing fee” based on annual rental value. In Dubai it is typically 5% and is paid by tenants, or by owners if the unit is self-occupied.

VAT basics

• No annual property tax on residential property.
  
  
• Residential sales are generally exempt from VAT after the first supply, while the first supply of a new home within three years of completion is zero-rated for VAT. Commercial property sales and leases are usually subject to 5% VAT.

3. Choose Your Product: Off-Plan or Ready

Off-plan

• Pros: lower entry price, staged payments, developer incentives.
  
  
• Cons: delivery risk and timing.
  
  
• Protection: by law, developers must use project escrow accounts, and access to buyer funds is tied to construction milestones. Verify the project is registered and escrowed. t

Ready

• Pros: immediate handover and rental income potential.
  
  
• Cons: higher price per square foot and full payment at transfer.

4. Finance Smartly: Mortgage Rules that Matter

The UAE central bank caps mortgage loan-to-value ratios. For expats buying a first home up to AED 5 million (≈ USD 1,361,470), typical caps are 75% LTV, with lower caps on second homes and on off-plan. Banks also apply affordability metrics. Terms evolve, so confirm with your lender. 

5. Do Your Due Diligence Like a Local

• Verify title and ownership using DLD’s Title Deed Verification service.
  
  
• Use Dubai REST, DLD’s official app, to see your property wallet and market data, and to transact many services.
  
  
• Check the Service Charge Index for the community.
  
  
• For off-plan, confirm the project registration and escrow account status. 

If you are a company buyer, prepare corporate documents such as a board resolution and constitutional documents that align with DLD requirements for the vehicle you are using. Dentons’ overview explains how DLD treats foreign entities and accepted local structures. 

6. Execute the Transaction: The Standard Steps

1. Form F sale agreement. The RERA-issued contract is the standard memorandum of understanding for secondary sales. DLD publishes a template.
   
   
2. Deposit. Commonly 10% with escrowed or manager’s cheque arrangements.
   
   
3. NOC from the developer. Confirms service charges are paid and there are no objections to transfer.
   
   
4. Transfer at a Trustee Office. Pay DLD fees, any mortgage registration, and complete the transfer to receive your Title Deed.

7. After You Buy: Visas, Leasing, and Compliance

Residency through property

• 2-year investor residence permit: available if you own a Dubai residential property worth AED 750,000 (≈ USD 204,220) or more. Conditions apply if mortgaged. Application is via DLD.
  
  
• 10-year Golden Visa: available to property investors with qualifying real estate of AED 2 million (≈ USD 544,588) or more.

Leasing your unit

• All tenancy contracts must be registered with Ejari, a government-run online system that makes it easy to register your rental contract with Dubai’s Real Estate Regulatory Agency (RERA). Without Ejari, tenants cannot open utilities or enforce rights.
  
  
• Short-term rentals require a Holiday Home permit from Dubai’s Department of Economy and Tourism. Register the unit and comply with operator rules and guest registration.
  
  
• Keep an eye on occupancy disclosure rules in Ejari. Recent reporting highlighted tighter co-occupant registration for transparency. 

8. Market context in 2025: returns and risks

• Activity remains strong. DLD reported 125,538 real estate transactions worth AED 431 billion in H1 2025, up 26% year on year. (Government of Dubai Media Office)
  
  
• Pricing and rents have risen materially since 2021, supported by population growth past 4 million residents and liberal visa reforms. Analysts note moderation in 2025. (Financial Times)
  
  
• Banks and developers are seen as resilient, but prices may experience fluctuations into 2026. Build realistic scenarios into your underwriting.

Invest in Dubai Checklist

A) Strategy and structure

• Define the goal: yield, flip, second home, or corporate use.
  
  
• Choose the holder: personal name or approved UAE entity. Confirm DLD eligibility for your investment vehicle.

B) Budget

• Price plus roughly 6% to 8% for DLD transfer, trustee, admin, NOC, and conveyancing.
  
  
• For financing, add 0.25% mortgage-registration fee and bank costs.

C) Due diligence

• Title Deed Verification and Dubai REST checks.
  
  
• Service charge index and developer reputation.
  
  
• For off-plan, verify escrow and project registration. 

D) Contract and transfer

• Sign Form F. Pay deposit.
  
  
• Obtain developer NOC.
  
  
• Transfer at Trustee Office, pay fees, collect Title Deed. 

E) Post-completion

• If leasing long term, register Ejari. If doing short lets, obtain a Holiday Home permit.
  
  
• Evaluate residency options: 2-year investor visa at AED 750k+ (≈ USD 204,220), or Golden Visa at AED 2m+ (≈ USD 544,588).

Extra Notes for Corporate Investors and Developers

• Special-purpose vehicles: DIFC SPVs and other accepted UAE entities can hold Dubai freehold assets, making share-deal exits and financing simpler. Validate your investment vehicle in advance with your trustee office and DLD. 
• Becoming a developer: you must register the project with DLD, provide corporate documents and land agreements, and comply with the escrow regime that protects buyers’ payments.

Frequently Asked Questions

Is there a property tax in Dubai?
No annual property tax on homes. Expect transaction fees at purchase and a municipality housing fee tied to rental value. VAT rules depend on residential versus commercial and first supply status.

Can a foreign company hold title directly?
DLD policy usually requires a recognized UAE-based entity for registration, such as JAFZA Offshore or a DIFC SPV. RAK ICC ownership is possible under current practice and memoranda for freehold areas. Check eligibility for your exact asset early.

How much can I borrow?
Typical caps for expats buying a first completed home up to AED 5 million (≈ USD 1,361,470) sit around 75% LTV. Lower caps apply to second homes and off-plan. Lenders will confirm your exact limit.

Final Thought

Dubai rewards thorough preparation. If you verify title and fees, respect the escrow and tenancy frameworks, and choose the right holding vehicle, you can invest with confidence and professional standards that match any major global market. 

Contact our specialists for tailored guidance on structuring, due diligence, and compliance. Plan your Dubai investment the right way.

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