The 2024 Dubai Property Buying Guide

The first and most important thing to do is set a budget. If you are a cash buyer, you also need to ensure that the funds are UAE-accessible when the time comes to transfer. Factor in the property price, a 2% agency fee, a 4% transfer fee and potential mortgage interest (around 3-4%). After setting a budget, think about the different areas you would like to reside in Dubai. Remember, not all properties in Dubai are accessible for purchase by foreign passport holders. Keep your search to freehold areas like Dubai Marina, Downtown, and many others. Freehold properties grant you complete ownership of the property and the land the property is built on. You can easily browse properties for sale in the UAE here, and even look inside any residence you like with professional photos and videos.

If you need a mortgage, then having a reputable mortgage advisor on your side is a must. They can arrange bank pre-approval, which will dictate your spending limit. Don’t forget that a minimum 20% deposit is required for mortgage approval to buy property in the UAE if the property value is under AED 5 million. For properties that are priced higher than AED 5 million, you’ll need a minimum of a 30% deposit. To schedule a call with one of our trusted mortgage advisors, or to try our mortgage calculator, click here.

Once you’ve set your budget, find a trustworthy RERA-qualified broker (ask to see customer testimonials as well) who can find your dream home or investment property. A RERA-qualified broker is a real estate agent in Dubai who has been certified by the Real Estate Regulatory Authority (RERA). You will need to sign a Form B contract with your broker to formalise offer negotiation representation. The Dubai Land Department (DLD) offers a free online resource to verify an agent's credentials. Simply visit their website or download the "Dubai Brokers App" to search for brokers by name, company, or their unique Base Registration Number (BRN). Don't hesitate to ask to see the agent's physical RERA card as well, to confirm the BRN matches the information you find online. Learn more about RERA here.

Get mortgage pre-approval and have your 10% unit deposit ready, so you can fast-track negotiations once you’ve found the perfect property and are ready to make an offer. This deposit is usually held in escrow by the agent until the sale is finalised.

Once both parties agree on the price, they will enter into a legally binding Memorandum of Understanding (MoU), which RERA calls Form F. The MoU must include full details of the contract you are entering into (such as rent paid or service charges due) as well as the agreed length of time until formal transfer. This is done via the Dubai Brokers App and you will also need to hand over a current dated cheque made out to the seller for 10% of the total unit price. A post-dated commission cheque made out to the brokerage you are using is also required at this stage. Be aware that there is a 14-day cooling-off period after signing the MoU, allowing you to withdraw from the purchase if needed.

Professional conveyancing services are usually required to assist with the sales process. A good conveyancer will hold your hand every step of the way and is responsible for conducting thorough checks on the property's title deed to verify ownership and identify any restrictions to ultimately facilitate the legal transfer of property from the current owner to the buyer. You can learn more about conveyancing here.

Prior to the purchase, the seller will need to obtain a No Objection Certificate (NOC) from the developer who built the property. This is your assurance that the property is free from any outstanding service charges.

If there is already a mortgage on the property you are purchasing, you will need to go through a ‘blocking’ process. The seller is obligated to obtain a liability letter from their bank, after which you will visit the Dubai Land Department (DLD) to ‘block’ the property. This is done through four cheques: one in the name of the seller’s bank for the outstanding mortgage; one in the name of the seller for the remainder of the purchase price; one in the name of DLD to cover the 4% transfer fee; and a final manager’s cheque* made out to the agency. *A manager’s cheque is a secure payment order (cheque) issued by the bank to an individual who has purchased said cheque.

On property transfer day, you will meet at the broker’s office, along with your conveyancer and the seller. Property purchases can only be made in cash or by manager’s cheques, so don’t forget to have these ready. You will also need the 4% transfer fee cheque for DLD. Once the transfer is completed and the sale is DLD registered, you will receive your new title deed and property keys/access cards. For more information on legal steps and fees related to buying property in Dubai, click here.

Congratulations, you are now a homeowner! One final task is to make sure all utilities are registered under your name; this includes things like gas, water, electricity and AC. Learn more about setting up utilities here.

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