How to invest in Dubai property
Middle East

How To Invest In Dubai Property

Purchasing for locals

Nationals in Dubai can buy property, provided they are over the age of 21 years which is considered as the age of majority in the country. Property can be purchased from a real estate developer or a property owner. One can find listed properties on various advertisement sites and assess their suitability. Alternatively, you can make an oral offer to the seller first, and negotiations can ensue. Nationals can quickly make negotiations, but a formal written contract has to be prepared to outline the deposit to be paid and other terms of the sale. The contract should also state explicitly that the property is at no charge.

Purchasing for nonlocals

In some cases, an expat would need to get approval from relevant authorities for a local to sign a sales contract. The expat may be required to be approved for home financing before he can own one in Dubai. When the expat’s offer is accepted, they are required to make a 5%-15% deposit. Also, a transfer fee of 1%-7% is charged, together with additional real estate agency fees of 2%-3% if one is using their services.

Purchasing off-plan property

This is where an investor is purchasing a property from a developer. A reservation fee is paid before a sales agreement is drafted. When buying property that is yet to be completed, investors are advised to ensure the purchase agreement indicates the expected completion date and the compensation to be received in case the project is not completed on the said date. To further cushion themselves from this risk, investors can consult the Real Estate Regulatory Agency in Dubai or the Department of Municipal Affairs in Abu Dhabi.


Investors should always keep track of the exact amounts of funds they have available. Consideration should be given to economic growth projections and developments in the real estate sector in Dubai. The mortgage laws change frequently, and it would be substantial for all investors to keep abreast with these changes. Information regarding mortgages is available at the Dubai Central Bank.

Buying resale property

One should first acquaint themselves with the property laws of Dubai. Here, services of a local lawyer would come in handy as they have jurisdiction in the UAE. For a start, the buyer and seller should agree on terms and conditions of the agreement, including the date on which the buyer is expected to make the final payment to a seller. This information is recorded in a document known as a Memorandum of Understanding. The buyer pays a nonrefundable deposit which is normally 10% of the property price or the amount that has mutually been agreed upon. Before making the final payment, however, the buyer can make a site visit to the property and come up with a list of things that the seller must address. This list could contain things like leaking pipes or roof, even a new paint job.

Here are some good tips by a Dubai-based real estate expert who also own



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