Buying Property in Dubai

Buying property in Dubai

Dubai is one of the most dynamic real estate markets in the world. The city boasts modern infrastructure, tax-free conditions, and high rental returns. The purchase process is clearly structured and accessible to buyers of all nationalities. The legal basis for foreign ownership is Article 4 of Law No. 7 of 2006. While Emiratis and GCC citizens are allowed to purchase real estate in all parts of Dubai, international investors can purchase properties in designated freehold and leasehold areas.

Defining Your Goals

The first step is to clarify whether the property will be used for your own use, for rental purposes, or purely as an investment. Your goals will significantly influence the choice of location, project type, and financing strategy.

Selecting the Project

Decide on a suitable property in an attractive location. Pay particular attention to the developer's reputation and experience - creditworthiness, construction quality, and reference projects are crucial criteria here.

Applying for a No Objection Certification (NOC)

The No Objection Certificate (NOC) is a clearance certificate issued by the developer, confirming that the seller of a property no longer has any outstanding financial or contractual obligations to the developer and that there are no objections to the transfer of ownership to the buyer. It is required for all property transfers in Dubai and is submitted before registration with the Dubai Land Department (DLD). It thus protects the buyer from hidden claims or liability risks. For existing properties, the NOC certifies that all service charges and fees have been paid in full. For off-plan properties, it is particularly necessary if the original buyer resells the property before completion, and in this case, confirms that all installment payments have been made according to the payment schedule. The NOC is therefore a key component of a legally secure property transfer in Dubai and ensures that the buyer acquires unencumbered property.

Reservation of the unit

The desired property is secured with a reservation deposit of approximately 10%. Typically, approximately 24% is due within a short period of time - the remaining portion is usually due within 14 days.

Conclusion of the Purchase Agreement F - SPA / MoU

Form F (RERA Unified Contract F) is the legally binding standard purchase agreement for real estate in Dubai, prescribed by the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA). It officially replaces the previous MOU and also serves as a Sale and Purchase Agreement (SPA) for existing properties. For off-plan properties, a developer SPA is also concluded; Form F forms the basis for official registration in the Oqood system before the Title Deed is issued upon completion. Form F thus governs the legally secure transfer of ownership for both types of property, from the initial contractual agreement to the final title.

Registration Oqood - Title Deed

Oqood is the Dubai Land Department's online registration system for off-plan properties, where the purchase agreement between buyer and developer is officially recorded. This registration secures ownership rights during the construction phase and remains in effect until the property is completed. The Title Deed is the official title deed issued by the Dubai Land Department, identifying the final owner of a property. For off-plan properties, the Oqood registration is followed by the registration of the Title Deed upon completion of construction and handover. For existing properties, registration takes place directly as a Title Deed, as the property is already completed. Together, Oqood and Title Deed manage the entire transfer of ownership in Dubai—from the preliminary registration during the construction phase to the final registration of ownership.

Payment Plan

In Dubai, flexible payment plans are common for off-plan property projects. The installments are based on the construction progress, which allows for manageable capital investment during the construction period.

Track Construction Progress

Get regular updates on the construction progress from your real estate consultant or broker. This way, you can maintain control at all times and react promptly if necessary.

Quality Inspection Completion Certificate - Official confirmation of the completion of properties

The Completion Certificate is an essential official document issued by the relevant construction authorities in Dubai, including the Dubai Municipality and the Trakhees Authority. It confirms that a construction project has been fully completed and meets all structural, technical, and safety-related regulations. Without this certificate, the legal use, rental, or transfer of ownership of a property is not permitted.

The Completion Certificate is issued following a comprehensive technical inspection by the relevant authorities. This checks whether the construction project complies with the approved plans, meets all safety and fire protection requirements, and all technical installations, including electrical, water, and plumbing systems, are functioning properly. The authority also assesses the construction quality and structural integrity to ensure the property meets the highest standards.

The Completion Certificate is crucial for buyers and investors. It provides legal certainty by confirming that a property has been properly completed and can therefore be legally used, sold, or rented. Banks and financial institutions often require this document as a prerequisite for financing and property valuation. It also serves as proof of quality, demonstrating compliance with construction standards and increasing confidence in a project's sustainability.

As part of the property transfer process, the Dubai Land Department (DLD) verifies the validity of the Completion Certificate. Buyers should ensure this document is available, especially for off-plan projects, as in some cases a preliminary version is issued while final work is pending. A careful review is required to ensure that no significant defects remain.

Property Handover

Before handover, a so-called "snagging" takes place - a detailed visual and technical inspection for defects. This ensures that the property is handed over free of defects and that no financial risk is incurred.

Transfer of Ownership

The final transfer of ownership takes place after receipt of the No Objection Certificate (NOC) at the Trustee Office of the Dubai Land Department. There, the buyer hands over the full purchase price in the form of a Manager's Cheque, which is paid to the seller on the same day. In addition, the statutory transfer fee of 4% and an administration fee are payable. Upon successful payment, the Dubai Land Department issues the new title deed as official proof of ownership. Prepaid operating costs or rental income are allocated pro rata between the buyer and seller based on an individually agreed-upon agreement.

Additional purchase costs

Cost Overview: What Costs Should You Expect When Buying Property in Dubai?

This list shows the expected costs of buying property in Dubai, helping you optimally plan your budget and make a decision. In addition to the actual purchase price, buyers must factor in government taxes, service and brokerage fees, mortgage-related costs, and other necessary expenses such as home insurance. It's especially important for newcomers and first-time buyers to carefully consider these factors to avoid financial surprises. Fees charged by the Dubai Land Department (DLD) are clearly summarized:

Dubai Land Department Fee:
- 4% of the purchase price
- AED 580 Title Deed Administration Fee
Property Registration Fee:
- For properties under AED 500,000: AED 2,000 plus 5% VAT
- For properties over AED 500,000: AED 4,000 plus 5% VAT
Mortgage Registration Fees:
- 0.25% of the mortgage amount
- AED 290

Please note that registration must be completed within 60 days to complete the transaction in accordance with DLD regulations.

Real Estate Agent and Transfer Fees

For existing properties (secondary market), a real estate agent commission and a property transfer fee are charged.

Brokerage fees: 2% of the purchase price + 5% VAT
Conveyancing fees: These fees typically range between AED 5,000 and 10,000, depending on the scope of services provided.

Mortgage Costs

If you choose to purchase with a mortgage, please be aware that additional fees may apply.

Bank mortgage agreement fee: 1% of the loan value plus 5% VAT
Property valuation fee: Between AED 2,500 and 3,500 plus 5% VAT

Insurance Costs

Although home insurance is not mandatory, it is highly recommended to protect against large unexpected expenses in the event of an emergency. When purchasing a property with a mortgage, it is usually required to purchase life insurance.

The costs are typically broken down as follows:

Home insurance: Approximately AED 1,000 - varies by property
Life insurance: Typically 0.4-0.8% per year on the remaining loan balance

Security Deposit

When purchasing a property, the buyer is typically required to pay 10% of the agreed transaction value as a security deposit in the name of the seller. This deposit serves as a security measure and is usually held by the appointed real estate agent until the transfer of ownership is fully completed. Should the transaction fall through due to unforeseen circumstances or a breach of contract, the deposit will be refunded. However, if the buyer withdraws from the transaction without a valid reason, they risk losing the deposit. Therefore, it is recommended to carefully review the contract terms before paying the deposit to ensure clarity and understanding.

Additional Cost Considerations

In addition to direct expenses, you should also consider other cost factors:

Service Fees: Annual fees charged for the maintenance of the common areas in your condominium. These vary by community and should be factored into your budget.
DEWA Fees: When purchasing property in Dubai, it is important to consider the DEWA fees charged by the relevant authority for electricity and water connections. The deposit varies depending on the property type and can range from AED 2,000 for an apartment to AED 4,000 for a villa, for example.
Empower fees: If your property is located in a community with district cooling, you should also factor in the Empower fees. These typically include a security deposit, utility fees, and fixed monthly fees, the amount of which depends on the size of your property and your consumption.

Real Estate Forms & Contracts in Dubai

Buying or selling a property in Dubai requires a number of specific forms and contracts that are essential for a legally compliant and transparent transaction. Proper documentation plays a crucial role in the real estate market and serves to protect all parties involved.

These forms ensure that transactions comply with legal requirements and that properties are properly marketed. This provides an overview of the most important documents to ensure a smooth and secure property purchase or sale in Dubai.

Form A - Exclusive Agreement between Agent and Seller

Form A is an essential document in the Dubai real estate market and serves as an official contract between the agent and the seller of a property. It regulates the legal framework of the collaboration and obligates the agent to actively market the property and provide professional support to potential buyers.

The document must contain detailed information about the owner and the property itself, including the agreed commission structure. If the property is jointly owned by several owners, the signatures of all co-owners are required.

Form B - Exclusive Agreement between Agent and Buyer

Form B forms the contractual basis for the collaboration between a buyer and an agent in Dubai. It guarantees the buyer the support of a qualified real estate advisor who will act exclusively in their interest to find the right property.

By signing this document, the agent is legally authorized to represent the buyer in all aspects of the purchase. This includes organizing and accompanying viewings, participating in auctions, and collaborating with other advisors, provided this is regulated by a signed Form I.

Form I - Collaboration between a broker and other involved real estate consultants

Form I is an official document issued by the Dubai Land Department (DLD) that governs the collaboration between a broker and other involved real estate consultants. It is used when a principal broker engages external consultants or co-brokers to jointly market a property or serve prospective buyers.

The form defines the terms of the collaboration, including commission allocation, responsibilities, and compliance with regulatory standards. It ensures that all parties involved are registered, licensed, and legally protected—particularly during viewings, auctions, or negotiations that extend beyond the original brokerage agreement.

Form F - Purchase Agreement MoU (Memorandum of Understanding) & SPA (Sale and Purchase Agreement)

Form F, officially known as the RERA Unified Contract F, is the standard purchase agreement for real estate in Dubai prescribed by the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA). It is the only officially recognized contract document that serves as the basis for both registration and transfer of ownership. Form F is prepared exclusively via the official DLD systems (Trakheesi or Oqood) by licensed RERA brokers and must be signed by the buyer and seller. No transfer of ownership can take place in Dubai without a registered Form F.

Previously, the MOU was a separate preliminary agreement that set out the essential details of a real estate purchase (price, payment terms, handover date). With the introduction of Form F, this document is now the formal and legally binding replacement for the MOU. Form F assumes its function but goes beyond it, as it is officially prescribed, registered, and immediately legally effective.

The SPA is the full-fledged purchase agreement that governs all the details of a transaction. For existing properties, the signed and registered Form F also serves as the SPA. For off-plan properties, a separate Developer SPA is concluded in addition to Form F. This Developer SPA contains project-specific clauses such as the construction progress plan, completion dates, and acceptance conditions. In this case, Form F serves as the official contractual basis for registration in the Oqood system, while the Developer SPA regulates the individual contractual relationship between the buyer and the developer in detail.

For existing properties, Form F simultaneously serves as both the MOU and the SPA. After signing, it is registered with the DLD, the purchase price is paid according to the contractually agreed terms, and the Title Deed is subsequently issued to the buyer.

For off-plan projects, Form F is registered in the Oqood system after signing, thus securing the buyer as the designated owner during the construction phase. In parallel, the Developer SPA regulates the specific project conditions. Upon completion and handover, the Oqood registration is converted into a Title Deed registration, which issues the final title deed.

Form F is not just a formal purchase agreement in Dubai, but the central and essential document that legally secures the buyer's position. It combines the functions of the former MOU and SPA for existing properties and, together with the developer's SPA, forms the basis for official title registration for off-plan properties.

Form U - Termination of the Brokerage Agreement

If a buyer or seller wishes to terminate their relationship with a broker, a formal termination notice is required. The broker must be given seven days' notice and a valid reason for terminating the agreement must be stated.

The official termination document is Form U, which legally terminates the existing contract between both parties. Signing this document ensures that the termination is carried out properly and that both parties are aware of their future rights and obligations.

Lease Agreement & Ejari Registration

A legally valid lease agreement between landlord and tenant is a fundamental requirement for any rental in Dubai. To ensure the validity of the agreement and legally protect the rights of both parties, it must be registered in the Ejari system.

Ejari registration is required by law and serves to avoid disputes, secure official documents, and provide authorities with transparent traceability of tenancies.

The following types of properties can be purchased by foreigners in Dubai

Guide to buying Property in Dubai