Moving to Dubai and thinking about buying property? You’re not alone.
Thousands of expats make this decision every year, and honestly, it’s one of the smartest financial moves you can make in the UAE. But let’s be real—the process can feel overwhelming if you don’t know where to start.
I’m going to walk you through everything, step by step, in plain English. No jargon, no fluff, just the practical stuff you need to know.
Why Dubai Property Makes Sense for Expats Right Now
Dubai’s real estate market has grown up. It’s not the wild west it used to be back in the early 2000s. The government has put serious regulations in place, and the market now runs on actual demand rather than pure speculation.
Here’s what’s driving the market in 2025-2026:
The population is pushing 4 million people and growing by over 200,000 residents every year. That’s real demand, not just hype. Add to that the city’s tax-free status, world-class infrastructure, and the fact that you can now get long-term residency just by buying property—and you’ve got a pretty compelling case.
The First Thing You Need to Understand: Freehold vs. Leasehold
This is where most expats get confused right out of the gate.
Freehold means you own the property and the land it sits on, forever. You can sell it, rent it out, or pass it to your kids. Most expats buy freehold because it gives you complete control.
Leasehold means you own the building for a fixed period—usually up to 99 years—but the land belongs to someone else. Think of it like a really, really long-term rental of the land itself.
Where Can You Buy Freehold?
The areas most expats target are:
- Dubai Marina
- Downtown Dubai
- Palm Jumeirah
- Dubai Hills Estate
- Jumeirah Village Circle (JVC)
- Business Bay
- Dubai Creek Harbour
Leasehold properties tend to be in older, more traditional neighborhoods like Al Barsha, Jumeirah, or Deira. They’re cheaper upfront but give you less flexibility long-term.
The Actual Buying Process: What Happens Step by Step
Let me break down what actually happens when you decide to buy.
Step 1: Find Your Property and Make an Offer
You’ll work with a real estate broker (make sure they’re licensed by RERA—that’s Dubai’s real estate regulatory authority). Once you find something you like and agree on a price, you’ll sign what’s called a Memorandum of Understanding, or MoU.
This is legally binding. You’ll typically pay 10% of the purchase price as a deposit at this stage. That money gets held by the broker or a trustee until everything’s finalized.
Step 2: The No Objection Certificate (NOC)
The seller needs to get an NOC from the developer. This is basically a document saying all the service charges, maintenance fees, and utility bills are paid up. Without this, the Dubai Land Department won’t let the sale go through.
Step 3: The Transfer at Dubai Land Department
The final step happens at a DLD trustee office. You’ll bring manager’s cheques (not personal checks) for the remaining amount plus all the fees. Once everything checks out, the DLD issues a new title deed in your name. Done.
The whole process usually takes 8 to 12 weeks for ready properties.
The Hidden Costs Nobody Tells You About
Here’s where a lot of expats get caught off guard. The purchase price isn’t the only money you’ll spend.
DLD Transfer Fee: 4% of the property value plus about AED 1080. Technically this can be split with the seller, but in reality, buyers almost always pay it.
Broker Commission: 2% of the property value plus 5% VAT.
Trustee Office Fee: Between AED 2,000 and AED 4,200, depending on the property value.
NOC Fee: Anywhere from AED 500 to AED 5,000, depending on the developer.
DEWA Deposit: AED 2,000 for apartments, AED 4,000 for villas. This is refundable, at least.
If you’re getting a mortgage, add another 0.25% of the loan amount for registration.
All in, you’re looking at roughly 7-8% of the purchase price in closing costs. On a AED 1 million property, that’s AED 70,000-80,000 you need to budget for on top of your down payment.
Getting a Mortgage in Dubai as an Expat
The good news: Dubai banks love lending to expats. The bad news: it depends heavily on whether you live here or not.
If You’re Already Living in Dubai
Banks will typically lend you up to 80% of the property value if it’s under AED 5 million and you’re a first-time buyer. For properties over AED 5 million, that drops to 70%.
You’ll need:
- A minimum monthly salary of AED 10,000-15,000
- Six months of bank statements
- A salary certificate
- Your passport and Emirates ID
Interest rates in early 2025 are running between 3% and 5% annually, usually linked to EIBOR (the Emirates Interbank Offered Rate) plus the bank’s margin.
If You’re Buying from Abroad
This is tougher. Banks will only lend you 50-65% of the property value, which means you need to bring 35-50% as a down payment. You’ll also pay higher interest rates—usually 0.5% to 1% more than residents.
The maximum loan term is 25 years, and it has to be paid off by the time you’re 65 (or 70 if you’re self-employed).
The Golden Ticket: Property for Residency
This is where things get really interesting.
Dubai now offers long-term residency visas based on property ownership, which means you don’t need a job or company sponsorship to live here.
The Golden Visa (10 Years)
Buy property worth at least AED 2 million and you qualify for a 10-year renewable residency visa. This can be one property or multiple properties that add up to that amount. Even if you have a mortgage, you qualify as long as you’ve paid at least AED 2 million in equity.
The beauty of the Golden Visa is that it doesn’t matter how much time you spend outside the UAE. You won’t lose it if you travel for work or live elsewhere part of the year. You can also sponsor your spouse, children, parents, and even domestic staff.
The Investor Visa (2 Years)
For a lower entry point, buy a completed property worth at least AED 750,000 and you get a 2-year visa through the Taskeen system. The catch is the property has to be finished and ready to move into—off-plan doesn’t count until it’s handed over.
You’ll need to visit the UAE at least once every 180 days to keep this visa active.
Retirement Visa (5 Years)
If you’re 55 or older, you can get a 5-year retirement visa by owning property worth at least AED 1 million, or by having AED 1 million in savings, or proving monthly income of at least AED 15,000-20,000.
Should You Buy Off-Plan or Ready Property?
This is a personal choice, but here’s how to think about it.
Off-plan properties are sold during construction and are typically 15-30% cheaper than completed buildings in the same area. The upside is significant capital appreciation as the project nears completion. The downside is you’re waiting 2-3 years and taking on some construction risk.
Dubai has solid protections for off-plan buyers. All your payments go into an escrow account that the developer can only access in stages as construction progresses. You also get an “Oqood” certificate, which is your legal proof of ownership during construction.
If the developer goes bust or doesn’t deliver, RERA can step in and redistribute the escrowed money back to buyers.
Ready properties mean you can move in immediately and start renting it out if that’s your plan. You’ll pay more upfront, but there’s zero construction risk.
Which Neighborhoods Should You Actually Consider?
This depends entirely on what you’re after.
For High Rental Yields: Jumeirah Village Circle (JVC)
JVC consistently delivers the highest rental returns in Dubai—often over 10% for studios and one-bedroom apartments. It’s a mature community with good infrastructure, and it’s popular with mid-market tenants.
For Capital Growth: Dubai South
If you’re thinking long-term, Dubai South is the smart play. With Al Maktoum International Airport expanding and serious government investment in the area, experts are forecasting 12-16% annual capital growth through 2026. Rental yields are also healthy at 6.5-8.5%.
For Stability and Prestige: Palm Jumeirah and Downtown
These are your “trophy assets.” You’re not buying here for massive yields—rental returns sit around 3.5-5.5%. You’re buying for capital preservation, liquidity, and the prestige of owning in Dubai’s most iconic locations.
For Families: Dubai Hills Estate
Tree-lined streets, golf courses, parks, and good schools. Rental yields are moderate (5.5-7.5%) but it’s a stable, end-user driven market with projected growth of 8-12% in 2026.
The Ongoing Costs You Can’t Ignore
Owning property in Dubai isn’t just about the purchase. You’ve got annual costs to factor in.
Service Charges: These cover maintenance of common areas, pools, gyms, security, and landscaping. They’re calculated per square foot and vary wildly. Luxury towers in Downtown might charge AED 17-40 per square foot, while villa communities like Arabian Ranches might be AED 2-5 per square foot.
Municipality Tax (Housing Fee): This is 5% of the annual rent, divided over 12 months and added to your DEWA bill. If you live in the property yourself, it’s calculated based on RERA’s rental index for your area.
The Tax Situation: What You Owe Back Home
Dubai doesn’t tax you. But your home country might.
UK Expats
If you’re still a UK tax resident, rental income from your Dubai property is taxable at your marginal rate (20-45%). When you sell, capital gains tax might apply (18-28%). The good news is the UK-UAE Double Taxation Agreement prevents you from being taxed twice.
Indian Expats
You can remit up to USD 250,000 per year under the Liberalized Remittance Scheme. Amounts over ₹7 lakh face a 20% Tax Collected at Source (though this is adjustable against your final tax). Rental income must be reported under “Income from House Property” and taxed at your slab rate. And don’t forget—the Black Money Act means you must declare your Dubai property in Schedule FA of your tax return.
What to Expect in 2026
Dubai is bringing 100,000-120,000 new units to market in 2026. That sounds like a lot, but with population growth adding 200,000+ people annually, the demand is there to absorb it.
Here’s what’s changing: price growth is normalizing. After the crazy 20-30% annual jumps we’ve seen, expect more sustainable 5-8% appreciation in 2026. This actually favors long-term buyers over speculators.
The market is maturing. The “buy and flip” crowd is shrinking. The “buy to hold” and “buy to stay” mentality is taking over, which creates a healthier, more stable market.
Final Thoughts: Is It Worth It?
If you’re planning to stay in Dubai for at least 3-5 years, buying makes a lot of sense. You’re building equity instead of paying someone else’s mortgage, you get residency security, and you’re diversifying your assets into a stable, growing market.
Just go in with your eyes open. Budget properly for all the costs, choose your location based on your actual goals, stick with reputable developers, and understand your tax obligations back home.
Dubai property isn’t a get-rich-quick scheme anymore. It’s a legitimate long-term investment in one of the world’s most dynamic cities. And for expats willing to do it right, it’s one of the best moves you can make.