UAE property buying guide

Property market updates | 07.02.2025 | Leanne Ruscoe

UAE's real estate market is gaining significant global traction thanks to rising property sales and transaction growth, offering international investors unmatched investment opportunities. Property sales in 2024 have increased 2.5 times compared to five years ago, reflecting a robust property market driven by the country's strategic infrastructure and economic stability.

Who can buy property in the UAE?

UAE Nationals can buy real estate in full ownership across all Emirates, including Abu Dhabi, Dubai, Sharjah, Umm al-Quwain, Fujairah, Ajman and Ra's al-Khaimah. Citizens of some Middle East countries (Saudi Arabia, Oman, Bahrain, Kuwait and Qatar) enjoy the same rights. Foreign investors, however, can purchase property under certain conditions, primarily in designated freehold areas.

Benefits of investing in the UAE

Diversified and open economy
Economic and political stability
Effective government strategies
Strategic infrastructure and location
Global investment and business hub
Advanced ratings by global agencies
Multi-cultural society
Strong financial reserves
Variety of business premises

Types of property ownership

Ownership type	Ownership duration	Benefits
Freehold	Indefinite	Full ownership rights, ability to sell, lease or pass on to heirs
Leasehold	30 to 99 years	Temporary ownership, reverts to landowner after lease period, typically lower upfront cost
Joint ownership	Varies	Shared responsibilities and benefits

Golden Visa issuance and process

Purchasing property in the UAE offers excellent real estate opportunities and the possibility of obtaining a Golden Visa. The Golden Visa program allows global property investors to obtain a long-term residence permit and a permit to live and work in the UAE, where there is no income tax for individuals and significant relaxation for legal entities.

Obtaining the UAE Golden Visa through real estate purchase

Visa type	Real estate investment required	Approximate value in GBP	Duration
10-year Golden Visa	AED 2,000,000	£420,300	10 years
2-year residence visa	AED 750,000	£157,600	2 years
2-year residence visa (co-owned by two spouses)	AED 1,000,000	£210,160	2 years

Types of properties in the UAE

Steps involved in purchasing property in the UAE

Step 1 - Schedule a consultation

The first step in your property investment journey is to schedule an appointment with the Benham & Reeves Dubai office. Our dedicated and experienced property agents offer personalised support, guiding you through every stage of the property buying process in the UAE - from initial consultation to final handover. We also assist with evaluating different investment options, investment goals, preferred property types and budgets.

Step 2 - Choosing a property

It is essential to choose the right residential property according to your investment goal. Whether you are looking for luxury villas, high-yield apartments or emerging property market opportunities, each offers a unique set of benefits.

Take some time to prioritise what's important to your goals instead of focusing solely on added benefits or price alone. Consider how many schools are nearby, how long your office commute would take and what shops and restaurants are in the area. If the property is purchased as an investment, study and prioritise the rental income within the area and how easy it will be to attract new tenants.

Step 3 - Reserve your unit

Once you have selected the development with a reputable developer, the next step is to reserve your choice of unit. This step usually involves securing the property with a reservation agreement.

Key steps in the reservation process

To learn about availability, pricing and payment plans, contact the developer's sales team or visit their sales office.
Once you've selected a unit, you must sign a reservation agreement. This agreement outlines the property details, purchase price, payment terms and reservation period.
To secure your unit, pay a reservation fee. This fee is refundable during the reservation period and ensures that the property is taken off the market while you finalise the purchase.

Step 4 - Arrange your finances

Financing is a crucial aspect of the property investment process. Before buying a property in the UAE as an overseas investor, understand the payment schedules, financing options and financial requirements. Also, understand the total cost of the property, including transaction fees, taxes and associated expenses.

Financing options

Mortgages are easily available for international buyers in the UAE. Some mortgages can be extended up to 25 years, allowing substantial repayment flexibility.

Down payment generally ranges from 40% of the property value and investors must present proof of income from their home country.

Developer's payment schedules

Some UAE developers offer buyers direct financing. These instalment plans often have lower initial down payments spread out over the property's construction period.

Fees and costs associated with buying a property in the UAE -

Fee type	Description	Typical cost (AED)	Notes
DLD fees	Fee paid to the Dubai land department	4% of purchase price + AED 580	Paid by buyer
Registration fees	Fee for registering the property	Under 500,000 AED 2,000 + 5% VAT Over 500,000 AED 4,000 + 5% VAT	Based on property price and paid by buyer
Mortgage registration fees	Fee for registering a mortgage (if applicable)	0.25% of loan amount + AED 290	Paid by buyer
Agent fees	Fee charged by a real estate agent (for completed properties not off plan)	2% of purchase price + 5% VAT	Varies depending on agent
NOC fees	Fee for no objection certificate from the developer	AED 500-5000	Varies depending on developer

Step 5 - Apply for a NOC

A No objection certificate (NOC) is a mandatory document for transferring property ownership in the UAE. This certificate ensures that your chosen property is free from disputes or unpaid dues.

The process to acquire NOC

(a) Apply for the NOC through the developer

(b) Required documents include a copy of your passport, a sale agreement and proof of payment

(d) NOC is issued once the application is approved

Timeline

The NOC application process typically takes 7-10 business days.

Step 6 - Payment of initial deposit

The next step in the property buying process in the UAE is to pay the deposit amount for the selected unit. A deposit amount (usually 10% of the sale value) is paid to the developer. This transaction acts as a security and signifies your commitment to the purchase. The developer can forfeit the deposit if the buyer backs out after this point.

Payment methods

Bank transfer secure and traceable.
Certified checks accepted by most developers.
Crypto. depending on developer
Cash. depending on developer

Timing

The initial deposit is due at the time of signing the sale agreement.

Once the deposit is paid, both parties will sign the Sales and Purchase Agreement (SPA), formalising the transaction.

Step 7 - Issuance of Oqood certificate

Following the SPA signing, the buyer proceeds with the Oqood registration to officially transfer the property ownership under their name. The Oqoodi is a preliminary sale agreement that serves as an official record of the transaction and outlines the terms and conditions of the sale. This certificate is crucial when buying property in the UAE as an overseas investor, as it legally binds both the buyer and the seller to the terms of the agreement, ensuring that the buyer's interests are protected.

This step involves registering the initial sale with the Dubai Land Department (DLD) through the Oqood portal, which issues the Oqood certificate. Once the property is completed, this certificate automatically becomes the regular title deed. 4% DLD transfer fees and administration costs will apply for off-plan purchases.

Issuance Process

Draft agreement The developer drafts the initial sale agreement.
Buyer review The buyer reviews and signs the agreement.
Developer submission The developer submits the signed agreement to the Dubai Land Department.
Registration The agreement is registered and an official 'Oqoodi' is issued.

Although the UAE real estate market buying structure is relatively straightforward, navigating foreign real estate intricacies can be a hassle for some overseas investors. Benham and Reeves, equipped with over 65 years of experience in the London property, is equipped to offer our clientele a uniquely personal service.

Our services cover investment advice, buying and selling and rental and management for UAE and London properties. Our agents handle all the logistics, paperwork and payments and even arrange marketing and advertising strategies on your behalf. We work with some of the top and best property developers, introducing you to lucrative investment opportunities.

With this kind of support, buying and letting your UAE property can be an easy and profitable investment venture. Contact our Benham and Reeves Middle East Office agents for more information and personalised advice.

Registered office address

Plot 161-0, Fronds building, Al Garhoud, Dubai, UAE

About the Author

Leanne Ruscoe - Head of Middle East & Africa

Leanne is the Head of Middle East & Africa, specializing in UAE residential property with a strong foundation in financial services. She advises international clients on strategic property acquisitions, helping them secure homes across the UAE. Based in Dubai, Leanne works closely with global investors on long-term wealth growth and portfolio diversification through property.

View all posts by Leanne Ruscoe