Do you want to know about the legal procedure to buy a property in Dubai as an expat? Whether you’re from India, the UK, or elsewhere, Dubai welcomes you with open arms. UAE laws allow you to own property here, and with a few easy-to-follow steps, your dream home can be a reality.

Dive into this guide to get all the info you need to make your Dubai property journey smooth and hassle-free!

1. The Law Behind Buying a Property in Dubai?
2. Difference Between Freehold and Leasehold Ownership?
3. What Are the Steps You Should Follow to Buy a Property in Dubai?
4. Government & Administrative Fees.
5. What Is a Trustee Office in Dubai?
6. What Is a Title Deed in Dubai?
7. Things to Consider While Buying a Property in Dubai
8. FAQs

1. What Is the Law Behind Buying a Property in Dubai?

Law No. 7 of 2006 is the main reference and regulation regarding owning property in Dubai. The law entitles UAE and GCC residents to buy property anywhere in Dubai.  As for the foreigners, they can buy their property in areas designated as freehold or leasehold. 

2. What Is the Difference Between Freehold and Leasehold Ownership?

The difference between them is that freehold ownership gives you full ownership of the property without restriction, while leasehold allows you to own the property for a set period of time, which is up to 99 years.

3. What Are the Steps You Should Follow to Buy a Property in Dubai?

The procedure to buy property in Dubai is the same either for owning a home or having a profitable real estate investment in Dubai. To know more about them in detail, check the below steps:

Step 1: Prepare the Buyer/Seller Contract

Step 2: Sign the Real Estate Sale Agreement

Step 3: Apply for No Objection Certificate

Step 4: Transferring Ownership at the Registrar’s Office

4. Government & Administrative Fees

When buying property in Dubai, a significant portion of the costs comes from government and administrative fees. These fees are mandatory and are set by government authorities to regulate and facilitate property transactions.

Dubai Land Department (DLD) Fees 

Description: A fee levied by the Dubai Land Department for all property transactions.

Amount: 4% of the property’s purchase price.

Property Registration Fees

Description: Charged for registering the property under the new owner’s name. These charges apply to both apartments and villas for sale in Dubai.

Amount:

Properties below AED 500,000 will cost AED 2,000 + 5% VAT
Properties above AED 500,000 will cost AED 4,000 + 5% VAT.

Mortgage Registration Fees

Description: Applicable if the buyer gets a mortgage in Dubai to purchase the property.

Amount: 0.25% of the mortgage amount + AED 290.

Legal & Documentation Fees

Description: Covers the costs for documentation required during the transaction.

Amount: Varies, but includes expenses like AED 580 for the Title of Deed

These fees constitute the basic government and administrative charges and can significantly impact the overall cost of buying a property in Dubai. It is important for buyers to budget for these fees to ensure a smooth transaction process.

Agent & Brokerage Fees

Description: This fee is for the services provided by real estate agents, who assist in finding the property, negotiating the price, and guiding through the purchase process.

Amount: Generally, 2% of the purchase price + 5% VAT.

5. What Is a Trustee office in Dubai?

Trustee Centers or Trustee Offices in Dubai are offices that are authorized by the Dubai Land Department to act as an intermediary between the DLD and clients.

These offices offer a range of services, including:

• Overseeing property registration
• Managing mortgage
• Facilitating transactions.

6. What Is a Title Deed in Dubai?

In Dubai, a title deed is an official and legally binding document issued by the Dubai Land Department (DLD) that certifies the ownership of a property.

Moreover, this document outlines the owner’s legal rights, like the right to use, mortgage, sell or lease the property.

Any title deed should include the following details:

• Owner name
• Property location
• Size
• Property type

Things to Consider While Buying a Property in Dubai

• It’s recommended to only deal with real estate agents who are registered with RERA.
• Documents written in a foreign language must be attested and submitted with certified translations into Arabic.
• The transactions must be registered within 60 days from the date of signing the contract by both parties.
• Some prominent freehold districts where foreigners can buy property in Dubai are Arabian Ranches, Palm Jumeirah, Dubai Marina, and Downtown Dubai.

8. FAQs

Is it easy to buy an apartment in Dubai?

As of January 2024, the procedure for purchasing property in Dubai has been become easier to cope up with the real estate acquisition processes found in many Western countries, making it a simple experience for buyers.

Can foreigners buy a house in Dubai?

Yes, the Dubai government welcomes non-resident investors to buy properties in specific areas known as “freehold zones”.

This policy has been established to encourage foreign investment, giving international buyers the opportunity to own freehold properties in some of Dubai’s most in demand developments.

Now you have your full guide to legal procedures for buying a property in Dubai. Investing in real estate in Dubai is easy and straightforward.

Share this insight

• 
• 
• 
• 
•