Steps For Buying Ready Properties in Dubai
Thinking of purchasing a property in Dubai? Whether you are thinking of starting your investments in Dubai’s booming property scene, or simply looking for a place to call home. Whether you are looking for a beachside villa in the luxurious Palm Jumeirah, a cozy apartment in Dubai Downtown or a cozy home away from the bustling city.
Buying property in Dubai is an exciting opportunity. But as thrilling as it is, you might be wondering: Where do I even begin? Don’t worry—you’re not alone. Many potential buyers feel a bit overwhelmed when they first explore the property market in this dynamic city.
The good news is that buying property in Dubai is a straightforward process when you know the steps. Dubai’s real estate market is one of the most well-regulated in the world, offering security and transparency for both local and international buyers. But, like with any significant investment, having a clear guide can make all the difference.
That’s where we come in! This guide is designed to walk you through every step of the property-buying journey in Dubai. Whether you're a first-time buyer or adding to your portfolio, we’ll help you navigate the process with ease and confidence. So, let’s get started and help you in your property buying journey!
What Are The UAE's Government Rules and Regulations Regarding Property Purchase
Before going through the steps we should be aware of what the UAE’s government rules and regulations are in regards to buying properties in dubai. This will clear any doubts you may have and give you a solid knowledge of your rights.
In Dubai, foreign ownership is permitted in areas designated as freehold. Foreigners (who don’t live in the UAE) and expatriate residents may acquire freehold ownership rights over property without restriction, usufruct rights, or leasehold rights for up to 99 years.
Article 3 of Regulation No. 3 of 2006 Determining Areas for Ownership by Non-Nationals of Real Property in the Emirate of Dubai (pages 129-132) indicates the land plots designated as freehold properties.
The title deeds are issued by the Land Department in the emirate. There is no age limit to own property in Dubai. If you need more clarification on any legal matter, you could contact the Dubai Land Department (DED) or the Real Estate Regulatory Agency in Dubai (RERA).
What are the Requirements for Buying Properties in Dubai?
- A valid passport
- Your visa
- Proof of income
- Recent bank statements
- Details about the property
- The purchase agreement
- Payment information
- The seller’s identity proof.
Steps to Follow When Buying a Property in Dubai
Whether you're purchasing a home for yourself or investing in Dubai's thriving real estate market, the process is essentially the same. Here's a detailed guide to help you navigate the steps:
Step 1: Prepare the Buyer/Seller Agreement
Once you’ve found the perfect property, the next step is to align with the seller on the terms of the deal. You’ll need to decide whether you’ll pay in cash or opt for a mortgage. While hiring a real estate agent or lawyer isn’t mandatory at this stage, it’s vital to create a well-structured agreement.
This contract should explicitly detail the agreed price, payment methods, and any other relevant terms to avoid potential misunderstandings later on. Taking the time to draft a clear and precise agreement sets a solid foundation for a smooth transaction.
Step 2: Sign the Real Estate Sale Agreement
The next step is to formalize the agreement with a legally binding document. You can easily download the sale contract, known as Form F or the Memorandum of Understanding (MOU), from the Dubai Land Department (DLD) website.
You also have the flexibility to include specific terms in the contract to suit your requirements. Once finalized, both you and the seller must sign the agreement in the presence of a witness—preferably at the Registration Trustee’s office. At this stage, you'll also need to pay a 10% security deposit to the Registration Trustee. This amount will be refunded to you once the entire transaction is completed successfully.
Step 3: Transfer Ownership at the Registrar’s Office
To complete the ownership transfer, you or your authorized representative must visit the Registrar’s office with the required documents. The process is straightforward and can be completed quickly if all documents are in order. Here’s what you need to do:
- Submit the Necessary Documents ( A cheque for the property price, Emirates ID and Passport of both parties, Signed Form F Contract)
- Have your details verified.
- Pay the applicable fees and collect the payment receipt.
- Receive the output, including confirmation, via email.
If you submit the documents early in the day, the transfer can often be finalized on the same day. Once approved, a new title deed will be issued in your name, officially marking you as the property’s new owner.
Extra Fees and Costs to Consider When Buying a Property in Dubai
When you are in the process of buying your new property, there will be some extra costs and fees that must be settled with different parties. Here are some of the fees and costs to keep in mind.
Government Fees
- Dubai Land Department (DLD) Fees:
- 4% of the purchase price
- AED 580 administration fee for apartments and offices
- AED 430 for land
- AED 40 for off-plan properties
- Property Registration Fee:
- For properties valued under AED 500,000: AED 2,000 + 5% VAT
- For properties valued above AED 500,000: AED 4,000 + 5% VAT
- Dubai Land Department Mortgage Registration Fees:
- 0.25% of the loan amount + AED 290
Agency Fees
- Real Estate Agent Fees: 2% of the purchase price + 5% VAT
- Conveyance Fee: Typically ranges from AED 6,000 to AED 10,000
Mortgage Fees
- Bank Mortgage Arrangement Fee: 1% of the loan amount + 5% VAT
- Property Valuation Fee: Ranges from 2,500 to 3,500 + 5% VAT
Initial Deposit
Buyers pay a 10% deposit for secondary market properties, held by a RERA-registered broker until transfer.
Service Fees
Annual maintenance fees, based on RERA’s index, cover shared amenities and vary by community. Rates are available on the Dubai Land Department’s website.
Tips Before Buying Property in Dubai
- Understand Ownership Rules: Non-UAE nationals can buy in designated freehold areas—ensure you know the difference between freehold and leasehold properties.
- Set a Realistic Budget: Factor in all costs, including DLD fees, agency fees, mortgage costs, and annual maintenance charges.
- Check the Location: Prioritize areas with good amenities, transport links, and strong rental demand for better long-term value.
- Secure Mortgage Pre-Approval:If financing, get pre-approval from a bank to understand your budget and streamline the process.
- Work with Registered Brokers: Always engage a RERA-registered agent to ensure a safe and transparent transaction.
- Plan for Resale Value:Invest in properties with strong market demand and high resale potential for a better return on investment.
- Work with a Real Estate Agent: Partner with a knowledgeable, RERA-registered agent who can guide you through the market, regulations, and paperwork.