Want to buy property in Dubai? Dubai is rapidly gaining popularity among Dutch people who want to move to Dubai. Whether it’s about building a sunny future, retiring in Dubai, or investing in real estate: Dubai offers a pleasant climate, many tax benefits, and a strongly growing real estate market.
That’s why many people decide to buy a property in Dubai. In this article, we’ll tell you everything you need to know if you’re considering buying a property in Dubai.
What you need to know before you start
Want to buy a property in Dubai? As a local, you can buy a property anywhere in Dubai, but if you’re going to move to Dubai as a foreigner, you can’t just buy a property anywhere in Dubai. As a Dutch person, you can only buy a property in certain zones as a foreigner.
Well-known freehold zones include Dubai Marina, JVC, Palm Jumeirah, and Downtown Dubai.
When you’re going to buy a property in Dubai, you have two choices. You can choose between freehold (full ownership) and leasehold (99-year lease). To be allowed to buy a property in Dubai, you don’t need a visa, but you do need a valid passport and proof of income.
So can you buy a house anywhere in Dubai? Yes, you can. However, you can only buy freehold (full ownership) in certain areas. In other areas, you don’t have this option, so you buy leasehold.
You can buy as much real estate in Dubai as you want. There is no limit to this.
Step-by-Step guide to buying a property in Dubai
Now that you know the basics of buying a property in Dubai, it’s time to actually start the process of buying a property. You can buy a property in 7 steps:
- Determine Your Goal and Budget
- Mortgage
- Choose a Reliable Real Estate Agent or Developer
- Location Choice
- Viewing and Choice
- Purchase Agreement and Payment
- NOC and Property Transfer
Step 1: Determine your goal and budget
The first step in buying a property in Dubai is determining your budget. How much do you want to spend on a property? And why are you buying it? First, think carefully about why you want to buy a property:
- Living in it yourself: If you’re going to live in the property you’re buying in Dubai, you should mainly look at your own situation and what you need. Then you should focus on location, schools, work distance, and comfort.
- Investment: It could also be that you’re buying a property as an investment. In this case, you should look more at what are upcoming or popular areas in Dubai to make as much margin as possible on your investment (ROI). Then focus on rental income and potential value increase. According to GuestReady, gross rental income in Dubai averages 6–7% per year, with peaks above 10% in neighborhoods like JVC or Dubai Marina and depending on long-stay (less, but more security and less hassle) or short-stay (more, but more uncertainty and work).
- Short-term rental (Airbnb): It could also be that you’re buying a property to rent it out on Airbnb and thus more as a holiday home. This is especially interesting in tourist zones like Palm Jumeirah or Downtown Dubai. In this case, you also consider other things like how close it is to tourist attractions and what leisure activities are available.
Once your goal for buying a property in Dubai is clear, you should also look at whether it’s all financially feasible for you. If you don’t have the money directly, you’ll need to take out a mortgage, just like in the Netherlands.
A bank in Dubai also wants to be sure that you can pay this money, so the bank naturally sets requirements. It’s also important to look at your financial situation:
- Banks in Dubai finance a maximum of 80% for residents and 75% for non-residents. For locals, this is around 85%. So they have an advantage.
- You often need at least 20–30% of your own money for down payment + additional costs (such as 4% transfer tax).
- Your monthly income should preferably be above AED 15,000 (approximately €3,750) if you are seeking financing through a bank. This, of course, also depends on the amount you want to borrow from the bank.
Step 2: Mortgage
If you want to buy a property in Dubai but don’t have the cash yourself, you’ll need to take out a mortgage in Dubai. When you choose a mortgage, start with a pre-approval from a local bank or mortgage advisor. You will need the following documents, among others:
- Passport
- Proof of income or employment contract
- Bank statements (usually last 6 months)
- Visa (if applicable)
It’s therefore useful to get a pre-approval from the bank before you buy a property, so you know for sure that the bank can arrange the financing for you. If you buy a property and can’t secure the financing, you can often incur a high penalty. This makes it nice to have certainty about your financing in advance. Typically, real estate agents can also help you find an attractive mortgage, so you could skip this step and go directly to step 3.
Note: The mortgage interest rate in Dubai is currently around 4-5%, with terms usually of 25 years. When purchasing a property in Dubai through a mortgage, you must also be able to cover the 4% transfer tax, renovation costs, and real estate agent fees yourself. Keep this in mind when making your decision.
Step 3: Choose a reliable real estate agent or developer
If you want to buy a property in Dubai, it’s important to work with a reliable real estate agent or property developer. Because real estate is a fairly popular topic in Dubai and there’s a lot of money to be made, there are many real estate agents in Dubai. This can make it difficult to make a choice.
Always work with a RERA-registered agent. These professionals are officially recognized and must adhere to regulations of the Dubai Land Department.
Once you’ve found a reliable real estate agent or property developer in Dubai, you can choose between existing property or new construction. So you have the choice between:
- Existing property (secondary market): Immediately available, but often slightly more expensive and older.
- New construction (off-plan): More attractively priced, often with spread payment plans, but the property is often only available to live in after a few years.
Well-known property developers with a good reputation include Emaar, Nakheel, Ellington, and Meraas. Extra caution is advised with smaller property developers: always check the track record of a real estate agent or property developer in Dubai when you’re going to buy a property.
Step 4: Location choice when buying a property in Dubai
When you’re going to buy a property in Dubai, the location where you’re going to buy is of course extremely important. As we discussed in step 1, you should choose a location based on your goals for the property. The location determines not only your living pleasure but also the return on your investment, if it’s an investment of course. Popular areas to buy a property in Dubai are:
- Palm Jumeirah: Luxury and prestige, ideal for short-term rentals. Highest real estate prices.
- Dubai Marina: Perfect for expats, vibrant atmosphere, good rental income.
- Downtown Dubai: Near Burj Khalifa and Dubai Mall. High demand, stable rental market.
- Jumeirah Village Circle (JVC): Affordable, lots of new construction, high rental demand.
- Arabian Ranches: Popular with families. Quiet living environment with greenery and schools.
Many people often already have a personal preference about the neighborhood where they want to live. A real estate agent in Dubai can always help you well with this too. If you have your goals and budget clear, the agent can also look at which property best fits your situation.
If you’re not entirely sure yet, you could also consider renting a property in Dubai first to get to know the neighborhood, and then only buy a property when you’re sure whether the neighborhood suits you or not.
Step 5: Viewings and choosing the property
If you opt for existing construction, you can view a property before actually buying it. In some cases, people buy a property and then move to Dubai, making it impossible for them to be present at the viewing.
Physical presence during a property viewing is not mandatory; many real estate agents offer virtual tours. Tips:
- Always request floor plans and construction plans.
- Check the condition of the building and facilities.
- Have a technical inspection carried out for existing buildings.
With new construction, the property you have bought is often not yet developed. This means you can only view the location, but not the actual property you are buying. To get a feel for the property you’re purchasing, you could visit the location.
Step 6: Purchase Agreement and Down Payment
Have you found a property you want to buy? Then the legal process begins:
- Form F (MOU): Preliminary purchase contract, signed at the Trustee Office.
- Down payment: often 10% of the purchase price as a deposit.
- Conditions: Establish agreements on delivery, furniture, deadlines.
Step 7: NOC and property transfer
After the down payment, the application for a No Objection Certificate follows with the developer. Then:
- Transfer at the Trustee Office with cheque/payment
- Pay 4% transfer tax
- Receive new title deed
Important costs when buying a property in Dubai
There are several important costs you need to consider when buying a property in Dubai. These costs are:
- DLD transfer tax: 4%
- Mortgage interest: 4–5%
- Down payment: 10%
- Own funds: 20-30%
- Real estate commission: 2% – 10% (depending on the property)
- Trustee Office fee: ± AED 4,000–5,000
- Mortgage registration costs: 0.25%
- Possible legal costs
These are generally the costs, though these figures may vary per situation.
Tax benefits
Many people buy real estate in Dubai because it’s an attractive city for investment.
- No income tax on rental income (private)
- No capital gains tax
- Average return 5–8% long-stay, up to 10% for short-stay rentals*
Pitfalls and how to avoid them
The real estate market in Dubai is popular and large, so it also attracts cowboys who try to take advantage of some people’s ignorance.
- Check real estate agent through RERA
- Buy from well-known developers
- Do your own research on prices and conditions
- Have building inspections carried out
- Always ensure clarity on costs before signing
Visa through real estate: the Golden Visa
Are you investing in real estate in Dubai? Then you can also get a visa. Dubai likes to attract investors and if you have enough real estate, you can get a visa.
- Min. AED 2 million investment (around € 500,000)
- 5-year visa for you + family (if you are a man)
- Access to local services
If you are retired, you can also get a visa if you buy a property in Dubai of a certain value.
Read all current rules here: Golden visa.
Useful websites and tools
- Property Finder – propertyfinder.ae
- Bayut – bayut.com
- Dubai REST app
- DLD Sales Register
- RERA Broker Check – dubailand.gov.ae
Frequently asked questions
Can I buy a property in Dubai without a visa?
Yes, you can.
How much of my own money do I need to buy a property in Dubai?
At least 20–30% of the total amount.
