Buying Property
Mortgages, off-plan, DLD fees, service charges.
Signed by: Sarah Al Qasimi (Lead Editor). Fact-checked by the full editorial team.
Can foreigners buy property in Dubai?
Yes — since 2002, non-UAE nationals can purchase freehold property in designated areas. These cover most of modern Dubai including Downtown, Marina, Palm Jumeirah, Business Bay, Dubai Hills, JVC, and hundreds of other communities. Outside freehold zones, foreigners can only lease for 99 years. Freehold ownership includes the right to apply for a property investor visa.
Source: Dubai Land DepartmentWhat is the Dubai Land Department (DLD) fee when buying property?
4% of the purchase price, payable to Dubai Land Department at the time of title deed transfer. This is separate from agent commission (typically 2%), mortgage arrangement fee, and conveyancing fees. On a AED 2M property expect total transaction costs of AED 120,000–160,000. DLD fees cannot be negotiated or avoided.
Source: Dubai Land DepartmentWhat is the minimum property value for a Golden Visa in Dubai?
AED 2,000,000 in completed (ready) property fully paid. Alternatively, mortgaged property worth AED 2,000,000+ where you have paid at least AED 1,000,000 (approximately 50%+ equity). Joint ownership counts if your registered share meets the threshold. Off-plan property does not qualify until completed and title deed is issued.
Source: GDRFA Golden VisaWhat are typical service charges in Dubai?
Apartment service charges: AED 10–30 per sqft per year depending on developer and facilities. A 1,000 sqft apartment with AED 15/sqft service charge costs AED 15,000/year. Villas typically AED 5–20/sqft. Always check the RERA service charge index for the specific building before buying. High charges significantly erode rental yield.
Source: RERA Service ChargesHow do off-plan property payment plans work in Dubai?
Typical structure: 10–25% booking deposit, 5–10% on Sale and Purchase Agreement signing, milestone payments during construction (every 5–20%), and 30–40% at handover. Post-handover payment plans (paying 30–50% after completion over 2–5 years) are increasingly common. Funds must be deposited in an RERA-regulated escrow account.
Is Dubai property a good investment?
Gross rental yields of 5–9% are typical, higher than London (3–4%) or Singapore (2–3%). Net yield after service charges, voids, and management fees is 3–6%. Capital appreciation has been strong 2020–2025 but is not guaranteed. Off-plan units sometimes offer below-market entry, but carry delivery risk. Always calculate net yield, not headline gross.
How much mortgage can I get in Dubai?
UAE resident borrowers: up to 80% LTV for properties under AED 5M (75% above AED 5M). Non-residents: 50–60% LTV. Maximum term is 25 years and age 65–70 at maturity. Debt burden ratio must be under 50% of monthly income. Monthly mortgage payments typically start at AED 4,000–6,000 per AED 1M borrowed on a 25-year term.
Should I get a snagging inspection before handover?
Yes — always. Snagging is a professional inspection of a new property before you accept handover. Cost is AED 2,000–5,000 depending on property size. Inspectors identify defects in finishes, plumbing, electrics, and HVAC that the developer must fix at no cost. Once you sign the handover acceptance, defects become your responsibility beyond the 12-month defects liability period.
When do I pay the DLD fee?
At the time of title deed registration at the Dubai Land Department. For ready property, this happens at the final transfer appointment at DLD or a certified trustee office. For off-plan, a 4% DLD fee is typically paid at contract signing (though some developers offer fee waivers as promotions). You cannot take title without payment.
Source: Dubai Land DepartmentHow long does a Dubai property purchase take to complete?
Cash purchases: 3–6 weeks from offer agreed to title deed in hand. Mortgaged purchases: 8–12 weeks due to bank valuation, approval, and NOC processes. Off-plan purchases are contractual commitments at signing — title deed is issued at completion of the building. Always check the developer's RERA Oqood registration at DLD.
Are my off-plan funds protected in Dubai?
Yes — Federal Law 8 of 2007 mandates that all off-plan funds be held in RERA-regulated escrow accounts. Developers can only access funds for construction milestones verified by RERA-appointed inspectors. This protects buyers if a developer faces financial difficulties. Always verify the escrow account number via DLD's official portal before transferring money.
Source: RERA EscrowCan I sell an off-plan property before it is completed?
Yes — a 'sub-sale' or 'resale of off-plan' is permitted with the developer's NOC. You pay 4% DLD fee on the resale price. The developer may charge an NOC fee of AED 5,000–10,000. The original payment plan obligations transfer to the buyer. A specialised off-plan resale agent is recommended as the process differs from ready property.