General questions
Can foreigners/expats buy houses in the UAE?
Yes, foreigners can own property in designated "Freehold" areas. In these zones, expats have 100% ownership of the land and the structure. In other areas, property is usually available on a "Leasehold" basis (typically a 90-year lease).
What are the steps to buying a ready property in Dubai?
1. Agreement (Form A & B): Seller signs Contract A with the listing agent; buyer signs Contract B with the buyer’s agent.
2. Agreement (Form F): Buyer and seller sign digitally the Memorandum of Understanding (MoU), also known as RERA Contract Form F issued by Dubai Land Department (DLD).
3. Deposit: The buyer usually pays a 10% security deposit (held by the agency).
4. No Objection Certificate (NOC): The seller applies for an NOC from the developer (e.g., Emaar, Nakheel,) to prove there are no outstanding service charges.
5. Ownership Transfer: Both parties meet at a DLD Trustee Office to finalize the sale.
6. New Title Deed: The DLD issues a new Title Deed in the buyer's name on the same day.
7. The 10% Security Deposit Cheque will be refund to the Buyer on the day of Transfer.
What is the difference between Off-plan and Secondary market properties?
Off-plan properties are purchased directly from a developer before or during construction, often coming with flexible payment plans. Secondary properties are "ready" homes purchased from the current owner.
What are the standard transaction costs when buying a property
Generally, you should budget for the following:Dubai Land Department Fees: 4% of the property value (plus AED580).Agency Fee: Typically 2% of the purchase price (plus 5% VAT).Trustee Office Fee: Approximately AED 4,000 – AED 5,000.Mortgage Registration Fees (if applicable): 0.25% of the loan amount plus AED 290.
Other
questions
Can I get a residency visa by buying a property?
Yes. The UAE offers several options:10-Year Golden Visa: Generally available for property investments of AED 2 million or more.2-Year Residency Visa: Available for properties valued at AED 750,000 or more.Note: These values refer to the equity held in the property, and specific conditions apply regarding mortgages.
How do I know if my real estate agent is legitimate?
Every legal agent in Dubai must have a RERA Card. You can verify their credentials on the Dubai REST app or the DLD website.
Are properties in Dubai subject to VAT?
Residential properties are generally exempt or zero-rated, meaning buyers and tenants do not pay VAT. However, commercial properties (offices, shops, warehouses) are subject to a standard 5% VAT on both sales and leases.
How long does it take to buy a new property in Dubai?
1.) With a mortgage (ready property):
Approximately 3 weeks to 1 month, depending on bank approval and documentation.
2.) Off-plan (new property from a developer):
The SPA (Sale & Purchase Agreement) can often be signed within minutes after booking, depending on the developer’s process.
Timelines may vary based on the developer, bank, and buyer readiness.