Buying property in Dubai: The complete guide for investors and buyers
Dubai is one of the most attractive cities in the world for property purchases. The cityscape is characterised by modern skyscrapers, luxurious villas and exclusive residential complexes – and all of this attracts investors and buyers from all over the world. If you are considering buying a property in Dubai, you will find all the important information, tips and answers to frequently asked questions in this guide.
Why buy property in Dubai?
Dubai offers numerous advantages that make it an ideal location for property purchases. Here are some of the most important reasons:
- Tax exemption: There is no income tax in Dubai and no tax on rental income, which is particularly attractive to foreign investors.
- Residency through property purchase: Buyers who purchase a property worth at least AED 1 million can apply for a residency permit in the United Arab Emirates. This makes buying property even more attractive for international buyers.
- Stable economy and attractive infrastructure: Dubai is an economically stable city with modern infrastructure, a global commercial centre and first-class living conditions that ensure the long-term value of real estate.
- Diverse property types: Dubai offers a variety of property types, from flats and villas to luxury flats and off-plan properties. Whether you are looking for an investment property or a home of your own, Dubai has a lot to offer.
What types of property are there in Dubai?
In Dubai, buyers can choose between different property types depending on their budget and investment goals:
- Flats: Most flats are located in modern residential tower blocks in areas such as Dubai Marina and Downtown Dubai. They offer high rental yields and are often fully furnished, making them attractive options for short-term rentals.
- Villas: Villas in Dubai offer spacious living areas and luxurious amenities. Villas in areas such as Palm Jumeirah, Arabian Ranches and Jumeirah Islands are particularly sought after.
- Luxury property: Dubai is known for its luxury properties. In exclusive residential complexes and villa neighbourhoods such as Emirates Hills and The World Islands, you will find exceptional luxury properties with a high level of prestige.
- Off-plan properties: Properties that are still under construction often offer lower entry prices and flexible payment plans. These off-plan properties are particularly popular with investors who want to get in early and benefit from a potential increase in value after completion.
Popular areas to buy property in Dubai
Dubai is a city with many different neighbourhoods, each with its own character and price range:
- Downtown Dubai: The centre of Dubai is known for the Burj Khalifa and the Dubai Mall. Many luxury flats and penthouses with high demand and corresponding prices are located here.
- Dubai Marina: One of the favourite areas for expats and young professionals. Dubai Marina offers modern flats with sea views, restaurants and shopping facilities – ideal for investors and long-term tenants.
- Palm Jumeirah: The iconic palm-shaped island is known for its exclusive villas and high-end flats with sea views. It is one of the most sought-after residential neighbourhoods in Dubai and attracts luxury lovers.
- Business Bay: Business Bay is an up-and-coming business district that combines modern residential and office space. Prices here are in the mid- to high-end range, attracting professionals and investors alike.
- Jumeirah Village Circle (JVC): A family-friendly residential area with more affordable property prices. JVC is increasingly attracting investors seeking good rental yields due to its growing infrastructure.
Steps to buying a property in Dubai
Buying a property in Dubai is a clearly structured process that runs smoothly with the right preparations:
- Analyse the market and set a budget: Familiarise yourself with the market and set your budget. This will help you to look specifically for properties that meet your expectations and possibilities.
- Selecting the right property: Look for properties in preferred areas and compare options. Viewings are important to familiarise yourself with the property and its surroundings.
- Pre-select and make an offer: Once you have found a property that meets your requirements, you can submit an offer to the seller.
- Purchase contract and legal check: Once the offer has been accepted, a purchase contract is drawn up. It is advisable to consult a lawyer who will check the legal aspects and ensure that everything is done correctly.
- Payment and registration: Payment is usually made by bank transfer. The purchase is then registered with the Dubai Land Department, which finalises the purchase and transfers ownership to the buyer.
- Receiving the Title Deed : After registration, you will receive the Title Deed, which identifies you as the legal owner of the property.
Costs and fees when buying property in Dubai
In addition to the purchase price, there are some additional fees that apply when buying a property in Dubai:
- Dubai Land Department (DLD) Fee: This fee is 4% of the purchase price and is payable upon registration of the property.
- Brokerage fee: Most brokers charge a commission of 2% of the purchase price.
- Transfer fee: This fee is usually AED 580 (approximately USD 160) and is charged for the transfer of ownership.
- Mortgage fees (if applicable): If you take out a mortgage, there will be additional bank and notary fees, which may vary depending on the bank and loan amount.
Conclusion: Buying property in Dubai
Buying property in Dubai offers both attractive returns and numerous incentives, such as tax exemption and exclusive neighbourhoods. Whether you are looking for a luxury property, a villa or a flat in an up-and-coming neighbourhood, the market offers a wide range of options. With a comprehensive market analysis, the choice of the right location and a clearly structured purchase process, buyers and investors can benefit from their property investment in Dubai in the long term
Yes, foreigners can buy and fully own property in designated freehold areas in Dubai.
The advantages include tax exemption, high rental yields, a stable economy and the possibility of obtaining a residence permit.
There is no official minimum investment, but most purchase prices start from around AED 500,000 (approx. USD 136,000) for smaller flats in more affordable neighbourhoods.
Rental yields in Dubai are between 6 and 10%, depending on the location, which is very attractive from an international perspective.
Off-plan properties are still under construction. Dubai regulates these through the RERA to protect investors from risks. Nevertheless, it is advisable to check the seriousness of the developer.
Yes, banks in Dubai offer mortgages, also for foreign buyers. As a rule, a deposit of 25-30% is required.
The purchase process usually takes between four and eight weeks, depending on the type of property and the financing.
In addition to the DLD fee (4% of the purchase price), brokerage fees, transfer fees and possibly mortgage fees apply.
Maintenance costs vary depending on the property and location, but are generally around AED 15-30 per square metre.
Yes, owners can apply for residency when purchasing a property worth at least AED 1 million.