Data-driven answers to the most common questions about Dubai real estate. For deeper insights, explore our comprehensive 30-topic Property Guide.
Yes. Since 2002, foreigners can purchase freehold property in designated zones across Dubai. You own the land, building, and all associated rights in perpetuity. Key freehold areas include Downtown Dubai, Palm Jumeirah, Dubai Marina, JVC, Business Bay, Dubai Hills Estate, and many more.
Off-plan properties are under construction. Benefits include payment plans (typically 20% down, 60% during construction, 20% at handover), lower entry prices, and capital appreciation potential. Risks include delivery delays and market shifts.
Ready properties are completed and available for immediate occupancy/rental. Benefits include immediate rental income, ability to inspect the actual unit, and mortgage availability. Requires higher upfront capital.
Dubai has strict regulations to protect off-plan buyers, enforced by RERA (Real Estate Regulatory Agency):
Escrow accounts (Law No. 8 of 2007):
Developer requirements:
How to verify a project:
Red flags: Requests for cash payments, unregistered projects, pressure to skip escrow — avoid these.
Delays are not uncommon in off-plan projects. Here are the key points:
Your rights:
Practical reality:
What to do if delayed:
Prevention: Research developer's track record before buying. Prioritize developers with history of on-time delivery (Emaar, Meraas, Dubai Properties, Nakheel). For newer developers, verify escrow registration and review completed project quality through site visits.
Yes, you can resell (assign) your off-plan unit before completion, but there are conditions:
Typical developer requirements:
Costs when reselling off-plan:
| Fee | Amount | Paid by |
| Developer NOC | AED 500 - 5,000 | Seller |
| DLD Oqood transfer | 4% of sale price | Buyer (typically) |
| Agency commission | 2% (negotiable) | Seller |
What you're selling: You assign your SPA (Sales Purchase Agreement) to the new buyer, who takes over remaining payment obligations.
Note: If prices have risen, you profit from appreciation. If prices have fallen, you may need to sell at a loss or hold until handover. Liquidity is lower than the ready market.
The UAE Dirham (AED) is pegged to the US Dollar at a fixed rate of 1 USD = 3.6725 AED since 1997. This peg is backed by substantial foreign reserves and is considered extremely stable.
What this means for property buyers:
Why the peg is reliable:
Note: If your home currency weakens against USD, your Dubai property value increases in your local currency terms, and vice versa.
To qualify for a 10-year Golden Visa through property investment (per ICP requirements):
2024 Update: The previous requirement for AED 1 million minimum down payment was removed in January 2024. You can now qualify immediately upon purchase if property value meets AED 2M threshold, regardless of mortgage status. A Bank NOC confirming no objection is required for mortgaged properties.
The Golden Visa provides 10-year renewable residency for you, spouse, and dependents with no minimum stay requirement. Apply through the Federal Authority for Identity & Citizenship (ICP).
Sources: UAE Government Portal, ICP Golden Residency
Total buying costs are approximately 7-8% of property value:
| DLD Transfer Fee | 4% of purchase price |
| Agency Commission | 2% (negotiable) |
| Trustee Fee | AED 4,000 + 5% VAT |
| NOC Fee | AED 500-5,000 |
| Mortgage Registration | 0.25% + AED 290 (if applicable) |
No annual property tax. Dubai has one of the most favorable tax environments for property owners:
The main ongoing cost is annual service charges (AED 12-25/sqft for apartments) for building maintenance.
Service charges vary by building quality and amenities:
| Standard Apartment | AED 12-18/sqft annually |
| Premium Apartment | AED 18-25/sqft annually |
| Branded Residence | AED 25-50/sqft annually |
Note: Service charges vary by building and can significantly impact net yields. Buyers may consider verifying these before purchase.
Historical data shows Dubai has recorded some of the highest rental yields globally, ranging from 5-9% gross:
| Area/Type | Typical Yield |
| IMPZ, International City (Studios) | 8-9% |
| JVC, DSO, Sports City | 7-8% |
| Dubai Marina, JLT | 5.5-6.5% |
| Downtown, Palm Jumeirah | 4.5-5.5% |
Higher yields typically come with lower capital appreciation potential and vice versa.
Gross Yield = (Annual Rent / Purchase Price) x 100
Net Yield = ((Annual Rent - Expenses) / Purchase Price) x 100
Typical expenses to deduct for net yield:
Both have merits. The right choice depends on your priorities:
| Factor | Studio | 1-Bedroom |
| Entry price | Lower (AED 300K-600K) | Higher (AED 500K-900K) |
| Rental yield | Often higher | Slightly lower |
| Tenant pool | Singles, young professionals | Couples, small families |
| Vacancy risk | Higher turnover | More stable tenants |
| Resale appeal | Mostly buyers | Buyers + end-users |
| Capital appreciation | Slower | Generally stronger |
Studios work best when:
1-bedrooms work best when:
Historical pattern: In premium areas like Marina and Downtown, 1-beds have historically outperformed studios on total returns. In affordable areas like JVC and DSO, studios have tended to deliver higher cash-on-cash yield.
Historical data suggests a minimum holding period of 3-5 years has typically been needed to recover transaction costs and benefit from market cycles.
Why short-term flipping is risky:
Typical holding period economics:
| Hold period | Historical observed outcome |
| < 2 years | Has often resulted in breakeven or loss after costs |
| 3-5 years | Has typically recovered costs, with modest gains in stable markets |
| 5-10 years | Has historically captured a full market cycle |
| 10+ years | Has spanned multiple cycles with compound rental income |
Factors that support shorter holds:
Factors that favor longer holds:
Historical pattern: Dubai's property cycles have historically run 7-10 years. Data shows that properties purchased during market corrections and held through recovery have tended to produce stronger outcomes.
The choice depends on individual priorities. Dubai has historically offered both, but they have typically not come together in the same property.
High yield areas (7-9%):
High appreciation areas (4-6% yield):
| Strategy | Best for | Typical areas |
| Cash flow focus | Passive income, retirees, leveraged buyers | JVC, DSO, IMPZ |
| Growth focus | Long-term wealth building, end-use potential | Downtown, Palm, Marina |
| Balanced | Moderate income + growth | Business Bay, JLT, Dubai Creek Harbour |
Historical pattern: High yield areas have historically provided income stability during flat markets. High appreciation areas have historically performed well during boom cycles. Both approaches carry risks, and past performance does not indicate future results.
Yes, Ejari registration is mandatory for all rental contracts in Dubai. Ejari (Arabic for "my rent") is the official tenancy contract registration system managed by RERA.
Why it matters:
Registration:
Important: Without Ejari, your rental contract has no legal standing in Dubai courts.
Rent increases in Dubai are regulated by RERA's Rental Index Calculator, not arbitrary landlord decisions.
How it works:
Compare your current rent to the average market rent for similar properties in your area. The allowed increase depends on how far below market rate your current rent is:
| Current rent vs market | Maximum increase allowed |
| Less than 10% below | No increase permitted |
| 11-20% below | Up to 5% |
| 21-30% below | Up to 10% |
| 31-40% below | Up to 15% |
| More than 40% below | Up to 20% |
Process:
Note: If a property is already at or above market rate, the landlord cannot increase rent under RERA guidelines.
Yes, you can sell a property with an existing tenant. The tenancy contract transfers to the new owner.
Key points:
If the new owner wants to move in:
Practical considerations:
Note: A long-term tenant with good payment history is generally considered a positive factor for prospective buyers.
Yes, but you need a holiday home permit from the Department of Economy and Tourism (DET).
Requirements:
Two approaches:
| Approach | Pros | Cons |
| Self-manage | Keep 100% of rental income | Handle licensing, guests, cleaning, maintenance yourself |
| Holiday home operator | Hands-off — they handle permits, listings, guests, cleaning | Typically charge 15-25% of rental income |
Yields: Short-term rentals can generate 20-40% higher gross income than long-term rentals in tourist areas (Dubai Marina, Downtown, Palm), but require more active management or operator fees.
Yes. Non-residents can obtain mortgages from UAE banks with these typical terms (per CBUAE regulations):
| LTV (Loan-to-Value) | Up to 75% for non-residents |
| Interest Rates | 4-5% (variable, tied to EIBOR) |
| Maximum Tenure | 25 years (or until age 65-70) |
| Min. Property Value | Typically AED 500,000+ |
UAE residents can access up to 80% LTV for properties up to AED 5M.
Limited options. Most banks only finance ready properties. For off-plan:
Some developers offer post-handover payment plans where you continue paying after receiving your property — essentially interest-free financing from the developer.
Typical structures:
| Plan | Structure |
| 60/40 | 60% during construction, 40% over 2-3 years after handover |
| 70/30 | 70% during construction, 30% over 1-2 years after handover |
| 80/20 | 80% during construction, 20% over 1 year after handover |
Benefits:
Considerations:
Note: Buyers may consider calculating whether rental income covers post-handover instalments. If it does, the rental income offsets the ongoing payment obligation.
For ready properties, the typical timeline is 2-4 weeks:
Cash transactions can complete in as little as 7-10 days.
It depends on your payment method:
Cash purchase: No physical presence required. You can purchase remotely using a Power of Attorney (POA):
Mortgage purchase: Physical presence in Dubai is required. You must sign the final offer letter in person at a UAE bank branch — this cannot be done remotely or via POA.
Note: Many buyers choose to visit Dubai at least once to inspect the property before completing a purchase, regardless of payment method.
Not required, but useful for ongoing property management.
Without a UAE bank account:
With a UAE bank account:
Reality check: Opening a UAE bank account as a non-resident is challenging. Banks are selective and typically require a strong financial profile, substantial minimum deposits (often AED 100,000+), and proof of UAE property ownership or business ties. Some banks may decline non-resident applications outright.
Alternatives:
Both are ownership documents registered with Dubai Land Department (DLD), but they apply at different stages:
| Document | When Issued | Property Status |
| Oqood | After SPA signing | Under construction |
| Title Deed | At handover | Completed/Ready |
Both protect your ownership rights. Oqood can be used to resell off-plan units before completion.
Our comprehensive 30-topic Property Guide covers everything from freehold zones to ownership planning.