Do you want to buy an apartment in Dubai? Buying an apartment in Dubai is a significant and potentially risky financial decision, but it can also be a smart investment.
Buying an apartment in Dubai is popular. With currently high rental incomes, attractive taxes, and a currently strong and growing real estate market, Dubai is an appealing place for international buyers, including Europeans.
However, the process of buying an apartment in Dubai is slightly different from Europe, and that requires thorough research beforehand. In this comprehensive article, you will read step by step what is involved in buying an apartment in Dubai.
Buying an Apartment in Dubai in 12 Steps
1. Determine Objectives
If you want to buy an apartment in Dubai, it’s first important to determine why you want to buy an apartment. Before you enter the market, it’s wise to think about the purpose of the purchase:
- Personal use – Living in Dubai for work, family, or emigration.
- Investment – Buying to rent out for passive income.
- Holiday home – For seasonal use or personal recreation.
The reason behind your purchase partly determines the location, type of apartment, and price range. Additionally, you can then also determine if Dubai is the right location for your objective and if an apartment is the right type of property for your goal.
It’s also helpful to have this clear for yourself before looking for a real estate agent in Dubai. This way, you can concretely tell an agent what you want.
You can also get a visa in Dubai if you invest a certain amount in real estate (for example, buying an apartment). Make sure to research how much this amount is, so you don’t accidentally fall just short of it.
2. Calculate Budget
Now that you’ve decided you want to buy an apartment in Dubai and what your objectives are, it’s helpful to determine your budget. The price of an apartment is just one part of the total cost picture. Consider the following costs when buying an apartment in Dubai:
- Purchase price
- Real estate agent commission (average 2%, but can go up to 10%)
- Registration fees Dubai Land Department (4%)
- Transfer costs at Trustee Office (approx. 2,000 – 4,000 AED + 5% VAT depending on the purchase price)
- Notary or legal support costs (0.25%)
- Possible mortgage and valuation costs
- Annual service charges (highly dependent on the type of complex)
Tip: Include 7 – 8% on top of the purchase price in your budget to cover all costs.
3. Arrange Mortgage or Fully Finance?
Most people who buy an apartment in Dubai need to borrow money from the bank. In Dubai, as a foreigner, you can take out a mortgage just like in the Netherlands. Pay attention to the following matters:
- Minimum down payment: often 20% of the value (up to AED 5 million), 35% for higher amounts.
- Income: a minimum of AED 15,000 per month is often required. However, this depends on the bank.
- Documents: pay slips, bank statements, passport copy, and proof of residence.
Tip: A pre-approval from the bank gives you a clear spending framework and increases your chances of success. So, have a conversation with a mortgage advisor and the bank to get the most up-to-date and accurate information and to get a pre-approval. The above is an estimate and varies per bank.
Useful Banks for Expats
You have dozens of banks in Dubai. Popular banks include, for example:
- Emirates NBD
- HSBC Middle East
- Mashreq Bank
- Abu Dhabi Islamic Bank
Want to read more about banks in Dubai? Then read: Banks in Dubai.
4. Determine Your Ideal Location
If you are going to buy an apartment, it’s also wise to consider which area you would prefer to buy an apartment in. Before you engage with a real estate agent, it’s also helpful to do some research yourself. Where would you like to live most? Dubai has a very diverse real estate market. These are popular options for an apartment in Dubai:
- For luxury homes: Downtown Dubai, Palm Jumeirah, Business Bay, Dubai Marina
- For affordable homes: International City, Jumeirah Village Circle (JVC), Dubai South
- For families: Dubai Hills Estate, Arabian Ranches, Mirdif
- For investors: Dubai Sports City, Jumeirah Lake Towers (JLT)
Consider factors such as distance to work, public transportation, schools, supermarkets, and parking facilities. Additionally, a reliable real estate agent ultimately knows what the best location is for you, as an agent knows much more about the city than you do. Therefore, the next step is: finding a real estate agent.
Moreover, the price of an apartment also varies greatly by neighborhood. For example, if you’re just on the other side of the road, in a less popular neighborhood, you’ll pay significantly less.
5. Find a real estate agent (RERA-registered)
Once you’ve had all your discussions and know how much mortgage you can get and what amount you can spend, you can start looking for a real estate agent who will help you find your apartment to buy in Dubai.
All real estate agents in Dubai must be registered with the Real Estate Regulatory Agency (RERA). Always check this. A good real estate agent:
- Knows the laws and regulations
- Helps with negotiations
- Handles the legal documents
- Guides the purchase process from A to Z
Ask for references from other people, read reviews, and work with someone who has experience with foreign buyers.
6. View apartments
You can search for an apartment yourself through websites like Property Finder or Bayut, or you can have your real estate agent suggest a selection. View:
- Both ready-to-move-in homes and off-plan projects (new construction)
- Different neighborhoods and price ranges
- Homes on different floors with varying views and layouts
Take photos, ask questions about service fees, and check the condition of the building. Additionally, it can be wise to ask around in your environment about the neighborhood where you want to buy an apartment.
With new construction, you often can’t go inside because it’s not finished yet, but you can already look at the location where it will be built and take a walk around the neighborhood. This way, you can also get a bit of an impression of whether the location is right for you and if you see yourself buying an apartment here.
7. Bidding and negotiating
Have you found a suitable apartment? Then you make an official offer through the real estate agent. There is often room for negotiation, especially if:
- The apartment has been on the market for a long time
- The project is still under construction (off-plan)
- You can pay immediately (without a mortgage)
Ask if extras like furniture, parking space, or payment terms are negotiable.
8. Sign the preliminary purchase agreement (Form F/MOU)
Once your offer for the apartment has been accepted, you draw up the contract together with your real estate agent:
- Form F/MOU (Memorandum of Understanding)
- Recording the sale price, payment plan, and responsibilities
- Signing in the presence of a witness
- You pay a deposit of 10%, usually via a Manager’s Cheque
This contract is legally binding. Make sure you understand it well and have it legally reviewed if necessary.
9. Request the NOC from the project developer
Once you have signed your contract and thus bought the apartment, you still need to register and document everything. The No Objection Certificate (NOC) is a document from the developer stating that:
- All service fees have been paid
- The sale of the apartment is approved
Without an NOC, you cannot transfer ownership.
10. Finalize your mortgage
Do you need a mortgage? This is officially arranged in this phase:
- Bank conducts valuation
- File is being finalized
- You receive the final contract and repayment term
- The bank disburses the amount via a Manager’s Cheque
Note: ensure everything is completed on time to avoid penalties.
11. Finalizing the transfer at Dubai Land Department
Both parties (or their authorized representatives) go to a Property Trustee Office to complete the transfer. You need:
- Original passports
- NOC document
- Form F/MOU
- Manager’s Cheques
- Copies of identification documents
After payment, you receive a new title deed in your name. You are now officially the owner of your apartment in Dubai!
12. Register utilities and insurance
If you have bought your house, you still need to arrange a few practical matters. After the purchase, you arrange the following:
- DEWA registration for water and electricity
- Internet and television (for example Etisalat or Du)
- Building insurance (mandatory with a mortgage)
- Optional: contents insurance
Also make sure you are aware of the annual service charges and payment dates.
How much does an apartment in Dubai cost?
How much does an apartment in Dubai actually cost? The starting price is 295,000 AED and goes up to 750 million AED, but the sky is the limit in Dubai.
- Cheapest apartments: from approx. 295,000 AED (e.g., studios in International City)
- Average budget: between 700,000 and 1.5 million AED for a 1- or 2-bedroom apartment
- Luxury segment: from 10 million AED up to 750 million AED (e.g., penthouses in Palm Jumeirah or Business Bay)
Is buying an apartment in Dubai worth it?
Many Dutch people choose to buy an apartment in Dubai because of:
- High rental yields (average 5 – 8% return)*
- No tax on income or profit**
- Possibility of residence visa (from AED 750,000 purchase value)***
- Modern infrastructure and stable real estate market
* These amounts are based on what investors say on the internet. Investing always carries risks.
** Read more about taxes in Dubai? Taxes in Dubai.
*** Read more about visas? Visa in Dubai.
For those who invest wisely and seek proper guidance, Dubai is definitely an interesting and accessible market to buy an apartment.
