Dubai Property Guide

Exploring One of the World's Fastest-Growing Real Estate Markets

Welcome to Dubai—the city where innovation meets opportunity. Known for luxury living, futuristic architecture, and investor-friendly policies, Dubai’s property market attracts thousands of global buyers each year. Whether you're looking to own, invest, or relocate, understanding how property works in Dubai is a game-changer.

This module will walk you through the key advantages of buying in Dubai, the step-by-step purchase process, and the essentials every buyer should know—from financing to residency.

Why Choose Dubai?

Dubai's real estate market has become a magnet for global investors due to a combination of factors that make it one of the most attractive destinations for property investment.

1. 0% tax on property ownership, rental income and capital gains.

2. Easy mortgage options available for customers (including non-residents).

3. High Rental Yields: up to 8-10% (Gross) Rental yields in Dubai are relatively high compared to London.

4. Freehold Ownership: Foreign investors can enjoy full ownership rights of properties, providing them with flexibility and security in their investments.

5. Quality Lifestyle: Dubai offers a high standard of living with world-class amenities, luxurious lifestyle options, and a safe and cosmopolitan.

6. Strong economy: Dubai's economy is strong because it's diverse, innovative, and well-connected, making it a top choice for global business.

7. Innovation Hubs and Free Zones:

• Innovation Hubs: These are designated areas within Dubai that foster innovation, entrepreneurship, and collaboration among startups, researchers, and businesses. They provide a supportive ecosystem with access to resources such as funding, mentorship, networking opportunities, and co-working spaces. Examples include Dubai Internet City, Dubai Silicon Oasis, and Dubai Science Park, which focus on technology, ICT, and scientific research respectively.

• Free Zones: Free zones are specific areas within Dubai (and the UAE) that offer businesses advantageous incentives and benefits to encourage investment and trade. These benefits typically include 100% foreign ownership, tax exemptions, customs privileges, and streamlined business setup processes. Free zones cater to various industries such as logistics, finance, media, and manufacturing. Examples include Dubai Airport Free Zone (DAFZA), Dubai Multi Commodities Centre (DMCC), and Jebel Ali Free Zone (JAFZA).

Dubai Real Estate

Dubai's real estate market has become a magnet for global investors due to a combination of factors that make it one of the most attractive destinations for property investment.

Real Estate Safety

• ESCROW account is mandatory to launch sales

• 20% of project value in ESCROW by Developer

• Developer is required to furnish a progress certificate to withdraw funds

• Construction progress update on DLD site

Investor Protection

• RERA penalty for developers for non-compliance

• DLP - Defect Liability Period 1 Year

• 5% of the project value hold back during DLP to cover any defects arising post completion

  
  

Purchasing a New Build in Dubai

The procedure to purchase real estate in Dubai is straightforward for the most part.

1. Presenting Property Options

   Offer clients a selection of new build properties based on their preferences, lifestyle, and budget.

   
   

2. Facilitating the Reservation Process

   Inform clients about the reservation fee (typically 2% of the property value).Provide guidance on completing the booking form, which grants 14 days to pay the down payment.

   
   

3. Assisting with Down Payment & Fees

   Explain the required down payment and the Dubai Land Department (DLD) registration fee (4% of the property value).

   
   

4. Guiding Clients Through Agreement Signing

   Present the Sales and Purchase Agreement (SPA) provided by the developer.

   
   

5. Payment Plan Management

   Offer support throughout the developer's payment plan, ensuring clients know when and how to make instalments.

   
   

6. Keeping Buyers Updated on Construction

   Share updates from the developer on construction milestones.

   
   

7. Preparing for Final Payment & Handover

   Advise clients on the final payment requirements upon construction completion. Ensure they receive the property handover, verifying that it meets agreed specifications.

   
   

8. Assisting with Registration & Ownership Transfer

   Guide clients through property registration with the Dubai Land Department (DLD) Ensure they obtain the title deed as proof of ownership.

Payment Process for New Builds

Step 1 Reservation Fee

The first step involves paying a reservation fee equivalent to 2% of the property's value. This fee must be paid within 14 calendar days by the client.

• If the client changes their mind, the reservation fee is refundable within 7 calendar days.

• Once paid, a booking form is generated from the system, granting the client 14 days to pay the down payment.

Step 2 Deposit (Down Payment)

The required down payment varies based on the value of the property:

• Properties below AED 5 million: 20% (includes 18% deposit + 2% reservation fee).

• Properties worth AED 5 million to AED 10 million: 30%.

• Properties exceeding AED 10 million: 40%.#

Additionally, the Dubai Land Department (DLD) fee of 4% must be paid along with the down payment. Payment specifics include:

• First 14% (4% DLD fee + 10% of the deposit) can be paid in cash.

• The remaining portion must be settled via money transfer.

Step 3 Payment Plan

Dubai offers flexible payment plans tailored to the client's needs, with the two most common structures being:

80-20 Payment Plan:

• 80% to be paid during the construction stage.

• 20% due upon construction completion.

60-40 Payment Plan:

• 60% to be paid during the construction stage.

• 40% due upon construction completion.

The payment plan is typically divided into instalments (often quarterly). Compliance with the specified payment schedule is required. Buyers can tailor payment plans to better align with their unique financial situations.

Dubai Financing

Although a large proportion of real property in Dubai is transferred on the basis of cash, financial institutions in Dubai do offer mortgages. For the most part however these are only available to UAE nationals and those foreign nationals resident in Dubai. Restrictions on mortgages have been placed upon banks and lenders by the UAE Central Bank. These Central Bank Regulations currently restrict lending to foreign nationals purchasing real property where construction is completed to the following:

First Property:

• Up to a maximum of 75% of the value of the property for property valued at less than AED 5 million;

• Up to a maximum of 65% of the value of the property for property valued at more than AED 5 million.

Second and Subsequent Properties:

• Up to a maximum of 60% of the value of the property irrespective of the value of the property.

For properties under construction, the restrictions are:

• Up to 50% of the value of the property irrespective of the purpose for which the property is being purchased or the value of the property.

Certain other restrictions have also been imposed by the Regulations, including but not limited to:

• maximum term of the mortgage should be 25 years;

• maximum age at the time of the last installment payment should be 65 years for foreign nationals (or 70 years if self-employed);

• the ratio of debt to income shall not exceed 50%;

• the maximum financing amount allowed for foreign nationals shall not exceed 7 years annual income.

Q&A Finance

Can non-resident get a mortgage in Dubai?

Yes, non-resident and international investors willing to acquire a property in Dubai can have a mortgage in the UAE.

What are the eligibility criteria for a non-resident mortgage in the UAE?

There are few rules that banks follow, but exceptions exist.

As a non-resident, on salary:

• Earn more than 25k AED, over the last 6 months (net of income taxes and other deductions)

• Have a monthly bank account balance of more than 20k AED (over the last 6 months)

• Provide a healthy, credit report

• Have no existing mortgage in the UAE

• Be less than 65y old, at the time of mortgage submission

As a non-resident, self-employed:

• Company exists for at least 1 year

• Have a monthly average balance of 50k AED, over the last 6 years

• Provide a healthy, credit report

• Have no existing mortgage in the UAE

• Be less than 65y old, at the time of mortgage submission

More details should be discussed with a mortgage advisor.

What is the maximum LTV (loan-to-value) I can get for a mortgage in the UAE?

Non-residents can get up to 75% LTV and up to 25M AED on their mortgages in the UAE.

What is the interest rate on a home loan in Dubai?

Between 2.99% to 5% depending on banks.

What is the documentation required for a mortgage in the UAE, being a non resident?

Documentation depends on the bank, client profile and country of origin.

The minimum documents:

1) ID:

• Passport copy

• Residency copy

• Recent utility bill

2) Banking statements:

• 6 months personal banking statements

3) Credit report:

• Banks usually ask for your credit report to be able to calculate your total debt exposure

If you are employed:

• Your salary certificate, stating your date of joining, your salary and your title

• Your last 6 months payslips, from your employer

If you are self-employed:

• Depending on the bank, you might be required to submit your company documentation, e.g. Trade license, MoA, Share Certificate, Audited Accounts and Bank statements

Dubai Residence

Owning property in the UAE is not just a mark of investment success; it opens the door to a world of opportunities, including the privilege of obtaining a residence visa. This unique arrangement combines the allure of luxury living in one of the world's most dynamic regions with the practical benefits of long-term residency. Among the many advantages of property ownership in the UAE is the eligibility for residence visas, which are categorized into two distinct types based on the value of the property purchased.

10 Year Golden Visa

Investment Required: Minimum AED 2 Million

• Extended Stay outside the UAE: There is no limit on how long you can be outside the UAE to keep your visa active.

• Sponsor up to 2 maids and 1 drivers for 2 years

• Sponsor your Family for the same period of 10 years

• Sponsor your children with an age limit of 30 years for boys & unmarried girls

• Sponsor your parents for a period of 10 years.

• Work, study or reside long-term in UAE without requiring a sponsor

• Open a bank account in the UAE

2 Year Property Investor Visa

Investment Required : Minimum AED 750,000

• Husband or wife, and children can be sponsored for the same period of 2 years

• Work, study or reside long-term in UAE without requiring a sponsor

• Open a bank account in the UAЕ

• To apply for residency, the property must be ready or at least 50% construction completed.

Both visa options reflect the UAE's commitment to attracting global investors and fostering a welcoming environment for those looking to make this dynamic country their home. Through property ownership, you gain access to an unparalleled lifestyle and the opportunity to be part of a flourishing community.

Final Thoughts

Dubai combines global appeal with strategic value. Whether you're attracted by rental returns, tax-free ownership, or lifestyle upgrades, the market here offers real flexibility and growth potential.

In the next module, we’ll take a closer look at the developers building these iconic projects—Sobha, DAMAC, Azizi and more—and explore how their designs, timelines, and pricing influence buyer decisions.