A First-Time Buyer’s Guide to Real Estate in Dubai

Types of Property Ownership in Dubai 

One of the first decisions you’ll face as a buyer is choosing between freehold and leasehold ownership. 

Freehold 

• Full ownership of the property and the land it stands on. 

• You can sell, lease, or pass it on to heirs. 

• Available in popular areas such as Downtown Dubai, Dubai Marina, Palm Jumeirah, Arabian Ranches, and Jumeirah Lake Towers. 

Leasehold 

• You lease the property for a term of up to 99 years. 

• The land remains owned by the freeholder (usually the government or a developer). 

• Leasehold areas are less common but still present in certain older districts. 

For first-time buyers, buying property in Dubai in freehold zones offers greater flexibility and long-term value. 

Best Areas to Buy Property in Dubai (2025) 

Choosing the right community depends on your lifestyle, budget, and goals. Here’s a breakdown of some top areas for various buyer profiles: 

When buying property in Dubai, your location choice will significantly influence both your lifestyle and investment returns. 

New vs. Resale vs. Off-Plan Properties 

Off-Plan Properties 

• Purchased directly from a developer before completion. 

• Lower upfront costs, with payment plans over 2–5 years. 

• Ideal for long-term investment but comes with construction risks. 

Ready (Resale) Properties 

• Immediate possession and rental income potential. 

• Better for buyers who want to move in quickly or avoid construction delays. 

• Requires full upfront payment or mortgage financing. 

Branded Residences 

• Managed by luxury hotel chains (e.g., Address, Four Seasons, Emaar). 

• Offer high-end amenities and strong rental returns. 

• Increasingly popular among international investors buying property in Dubai for lifestyle and prestige. 

Step-by-Step Process to Buy Property in Dubai 

Step 1: Set a Realistic Budget 

Factor in: 

• Property price 

• Down payment (min. 20–25% for expats) 

• 4% Dubai Land Department (DLD) fee 

• 2% real estate agent fee 

• Mortgage processing fees (if applicable) 

• Annual service charges 

Example for a property worth AED 1,000,000: 

• AED 250,000 down payment 

• AED 40,000 DLD fee 

• AED 20,000 agent commission 

• AED 5,000–10,000 in admin and transfer costs 

Always add 10–12% on top of the purchase price to cover all transaction costs. 

Step 2: Choose a RERA-Certified Agent 

The real estate industry is governed by Dubai's Real Estate Regulatory Agency (RERA). Make sure your broker has a license and is informed about regulatory requirements as well as market developments. 

Working with a reputable agent ensures transparency and smooth transactions during your journey of buying property in Dubai. 

Step 3: Secure Pre-Approval for a Mortgage (if needed) 

If you require financing, get mortgage pre-approval from a UAE bank. This will: 

• Help define your budget range 

• Speed up the purchase process 

• Improve negotiation strength 

Required documents: 

• Passport and visa 

• Emirates ID 

• Salary certificate or business license 

• Bank statements (last 6 months) 

• Credit report (if applicable) 

Banks typically finance: 

• Up to 75% for expats (first home) 

• Up to 80% for UAE nationals 

Step 4: Make an Offer and Sign the MoU 

Once you select a property: 

• Submit an offer through your agent 

• Negotiate terms 

• Sign a Memorandum of Understanding (Form F) with the seller 

• Pay a 10% deposit, usually held by the agent 

Ensure the MoU outlines all terms: final price, handover date, included furniture, penalties, etc. 

Step 5: Apply for the No Objection Certificate (NOC) 

The developer must provide a NOC certifying that there are no unpaid service fees or liabilities prior to transfer. Usually, this phase takes three to seven business days. 

Step 6: Final Payment & Transfer at the DLD 

Once the NOC is secured, both parties meet at the Dubai Land Department (DLD) to finalize the deal: 

• Buyer pays the remaining amount via manager’s cheque 

• DLD registers the new owner 

• Buyer receives the title deed 

At this point, the journey of buying property in Dubai is complete and ownership is officially yours. 

Visa Eligibility Through Property Ownership 

Dubai offers residence visas for property owners: 

This is a significant incentive for foreigners considering buying property in Dubai as a route to stable, long-term residence. 

Common Mistakes First-Time Buyers Should Avoid 

Even in a buyer-friendly market, pitfalls exist. Here's what to watch out for: 

1. Not Factoring in All Costs 

Service charges, maintenance, and admin fees can impact returns. Always evaluate total cost of ownership. 

2. Ignoring Due Diligence 

Check title deeds, ownership history, and legal encumbrances before proceeding. 

3. Underestimating Developer Reputation 

Stick with developers known for quality and timely delivery, especially when buying off-plan. 

4. Skipping Professional Inspection 

For ready properties, especially villas, hire an inspector to assess structural and mechanical condition. 

Key Documents Required for Buying Property in Dubai 

For individuals: 

• Passport copy 

• Emirates ID (if resident) 

• Proof of address (utility bill) 

• Signed MoU 

• Proof of payment (cheques, bank receipts) 

For corporate buyers: 

• Trade license 

• Board resolution 

• MOA (Memorandum of Association) 

• Passport copies of authorized signatories 

What Happens After the Purchase? 

Property Handover 

The developer will let you know the handover date if you purchase off-plan. Before you take possession, you will check the unit and report any issues. 

Register for DEWA & Utilities 

Set up your Dubai Electricity and Water Authority (DEWA) account online or via the app. Other utility providers may include: 

• Empower (district cooling) 

• Etisalat or Du (telecoms) 

Register for Ejari 

All rental properties in Dubai must be registered with Ejari to legalize lease agreements. You’ll need the title deed, tenancy contract, and passport. 

Final Thoughts 

Buying property in Dubai for the first time may seem complex, but the process is transparent and relatively fast compared to many global markets. With no annual property taxes, attractive rental yields, world-class communities, and a stable legal system, Dubai continues to be one of the most rewarding real estate destinations in the world. 

By understanding each step from legal requirements and financing options to choosing the right area and avoiding common mistakes you can ensure that your first property purchase in Dubai is a smart and successful investment. 

First-time buyers should also take the time to work with a trusted real estate agent who understands the local market and can guide them through each stage. Researching off-plan vs. ready properties, being aware of service charges, and ensuring that the developer is reputable are all critical factors. Moreover, exploring mortgage pre-approvals and understanding the cost breakdown, including transfer fees and registration charges, can prevent surprises later. With the right guidance and preparation, your entry into Dubai’s real estate market can not only meet your lifestyle needs but also deliver long-term financial gains.