Frequently Asked Questions
A question about UAE Real Estate
Yes, foreigners can own freehold properties in designated areas in Dubai. This allows 100% ownership of the property and the land it’s built on.
- Freehold: Full ownership of the property and land indefinitely.
- Leasehold: Ownership of the property for a fixed term (usually 99 years) without owning the land.
A property transfer fee is a mandatory fee paid to the developer or the Dubai Land Department (DLD) when ownership of a property is transferred from one party to another. This fee ensures the legal registration of the transaction.
While not mandatory, a real estate agent can provide market insights, handle paperwork, and guide you through the buying process, helping you avoid costly mistakes.
Yes, non-residents can get a mortgage in Dubai, but the process is more complex than for residents. Lenders require substantial proof of income, and buyers must make a significant down payment—typically at least 25% of the property's total cost.
Some of the best asset classes for creating a long-term portfolio or investment in Dubai are:
- Prime Location Apartments - Places like Downtown Dubai, Dubai Marina, and Palm Jumeirah yield strong rental yields and capital appreciation.
- Family-Oriented Private Villa - Gated facilities like Arabian Ranches, Jumeirah Golf Estates, and Dubai Hills Estate are drawing in long-term tenants.
- The Off-Plan Property – Purchasing an office under construction from a reputable developer usually tends to provide a low pass for future high returns.
- Short-term rental apartments, in otherwise urban areas, cater especially within furnished A-level service to companies like Airbnb.
Commercial Property - Office space and retail space within business hubs in DIFC and Business Bay present steady rental incomes and appreciation.
Residential properties in the UAE are generally tax-free, but buyers should consider additional costs like registration fees, service charges, and maintenance fees. The UAE also imposes a property transfer fee, which varies by emirate. In Dubai, this fee is 4% and is usually shared between the buyer and seller, though buyers often cover the full amount.
In Dubai, service charge refers to an ongoing fee paid by owners for the maintenance and upkeep of their building and some common areas. It includes cleaning, security, landscaping, repairs, waste disposal, and utilities (DEWA).
Service charges apply to all properties, be they residential or commercial, including apartments and villas. The fee may vary according to the type of property and services included in the charge. To assist buyers in understanding the approved charges for different projects, the Service Charge Index is made available by the Dubai Land Department.
These charges are generally calculated on a per-square-foot basis and range from about AED 3 to AED 30 or more per square foot. Service charge calculators give insight into minimum and maximum rates, sinking funds, and AC costs for different communities.
As it uses investment in property as a workaround to secure residency, Dubai is a must-try for expats wishing to live and work as residents, provided certain essential requirements are met. It must be at least worth AED 750,000 and sit in a freehold area where foreign owners can actually own real estate. The property type may include both residential and commercial properties that can be unencumbered or secured by a minimal mortgage debt. Residency is scammed for a period of three years and renewable as long as the buyer maintains the necessary criteria. The visa allows you to live in Dubai, enjoy local services, and sponsor family members, thus rendering it perfect for investors desirous of long-term benefits.
Implementation of KYC in the Real Estate Industry
KYC in real estate involves several essential steps:
- Document Verification: Buyers and sellers must provide valid identification, such as passports, driver’s licenses, and utility bills, to confirm their identities.
- Background Checks: A thorough review is conducted to ensure no history of financial crimes.
- Risk Assessment: Transactions and involved parties are evaluated for potential risks or red flags.
- Ongoing Monitoring: Continuous oversight helps detect suspicious activities or changes in financial status.
Documents Required for KYC in Dubai Real Estate
To comply with KYC regulations, the following documents are typically required:
- For Individuals:
- Valid passport copy
- Emirates ID (for residents)
- Visa page (for non-residents)
- Proof of address (utility bill or tenancy contract)
- Bank statements or proof of funds
- For Companies:
- Trade license
- Memorandum of Association (MOA)
- Board resolution authorizing the transaction
- Shareholder details
- Bank statements
Foreign investors can buy property in Dubai in designated freehold areas. To make the process easy, it's best to work with a real estate brokerage firm.
- Choose your property from freehold areas like either Downtown Dubai, Palm Jumeirah and/or Dubai Marina.
- Hire a brokerage firm to assist you in attaining the best deal and handling paperwork.
- An agreement between you and the seller must be drawn up whereby you sign a sales agreement.
- A deposit of around 10% of the property's value must be paid.
- The developer must obtain a NOC in order for the transfer to actually take place.
- Finally, settle the transaction with the Dubai Land Department (DLD) and pay the requisite fees and obtain your title deed.
No residency is required, but investors can obtain a residence visa based on property ownership.
Foreigners, expatriates, or non-residents may own property in Dubai on the basis of freehold; that is, they are granted full ownership rights by which they may buy, sell, or lease such property. However, they can purchase properties only in the designated freehold zones approved by the Dubai Government.
Key Rules:
- No Residency Requirement: Foreign buyers do not need a UAE residency visa to buy property.
- Valid Passport: Identity verification based on either passport is important.
- Mortgage Option: Each Non-resident can apply for a mortgage with different banks here in the UAE, but this eligibility will solely depend on how a bank perceives one as either a citizen or a resident, after verifying with respect to income and adopting different policies. Proof of financial standing or proof of employment could be required from them.
The real estate market of Dubai remains free and open for global investors, thus allowing it to become an appealing choice for property investment.
Dubai provides for the transfer of property ownership to heirs. In the event of death with a will, the assets in the UAE will follow the terms of the deceased's will. Non-Muslims are allowed to will their own property as they wish, or their heirs may request application according to the inheritance law of their home country. The laws of inheritance differ in application for Muslims and non-Muslims when there is no will. Non-Muslim expats will have their estates divided according to Federal Decree-Law No. 41 of 2022, with spouses, children, and parents in the first line of succession. In the case of Muslims, Sharia law governs inheritance; this sets fixed shares among heirs such as spouses, children, and parents. In cases of no heirs, the property is passed to the Emirate after the government has given due consideration. Again, it is highly recommended that expats make a will to avoid legal hassles and delays and ensure a smooth transfer of their property to their desired beneficiaries.
The Golden Visa in the UAE is a long-term residency program that grants property investors a 10-year renewable visa. To qualify, investors must:
- Own property worth at least AED 2 million (can be mortgaged).
- Purchase property with a minimum down payment of AED 2 million if financed.
- Buy property off-plan or completed from approved developers.
Golden Visa holders benefit from:
- 10-year renewable residency without a sponsor.
- Ability to sponsor family members (spouse, children, and household staff).
- No minimum stay requirement in the UAE.
- Business and tax advantages.
This visa is ideal for real estate investors looking for stability, ease of travel, and long-term benefits in the UAE.
Yes, all real estate transactions in Dubai must be registered with the Dubai Land Department (DLD) to ensure legal ownership and compliance with regulations. This applies to:
- Property sales and purchases
- Mortgages and leases
- Gifts and inheritance transfers
Registration is done through DLD’s Real Estate Registration Services or platforms like Oqood and the Dubai REST app. A Title Deed is issued upon successful registration, confirming ownership rights.
Failure to register can result in legal disputes, fines, or loss of ownership rights.
Choosing between freehold and leasehold property depends on your purpose:
- Freehold: Full ownership of the property and land. Best for long-term investment and expats wanting permanent residency.
- Leasehold: Ownership for a fixed period (usually 10 to 99 years). Suitable for those looking for affordable options or shorter-term stays.
For a better idea, consult a real estate agency to assess your needs and market conditions.
Yes, foreigners can own freehold properties in designated areas in Dubai. This allows 100% ownership of the property and the land it’s built on.
- Freehold: Full ownership of the property and land indefinitely.
- Leasehold: Ownership of the property for a fixed term (usually 99 years) without owning the land.
A property transfer fee is a mandatory fee paid to the developer or the Dubai Land Department (DLD) when ownership of a property is transferred from one party to another. This fee ensures the legal registration of the transaction.
While not mandatory, a real estate agent can provide market insights, handle paperwork, and guide you through the buying process, helping you avoid costly mistakes.
Yes, non-residents can get a mortgage in Dubai, though they are typically limited to borrowing up to 60% of the property’s value.
Townhouses and villas often have lower service charges, making them more cost-efficient for long-term investment if well-maintained
Dubai has no property tax. However, there is a 4% registration fee and additional admin charges associated with property transactions.
Service charges are fees paid annually or quarterly for the maintenance of common areas and amenities. These can range from AED 3 to AED 18 per square foot, depending on the property type.
Yes, buying a property worth AED 1 million or more can grant you a 2-year residency visa. Higher investments may qualify you for 5-year or 10-year visas.
You typically need a valid passport or ID, proof of address, and documentation showing the source of funds used for the purchase.
Foreign investors can purchase freehold properties, off-plan properties, or leaseholds up to 99 years. There is no requirement to hold a UAE visa to invest.
The process includes signing a Memorandum of Understanding (MOU), paying a deposit, obtaining approvals, and registering the property with the Dubai Land Department.
Foreigners can buy property in designated freehold zones, such as Palm Jumeirah, Downtown Dubai, and Business Bay, with full ownership rights.
If a buyer withdraws, they forfeit the deposit. If a seller withdraws, they must refund the deposit to the buyer.
Yes, Dubai property can be inherited, and there are no inheritance taxes. However, it’s essential to have a valid will registered in the UAE.
Investors who purchase property worth AED 2 million or more may qualify for a 10-year renewable Golden Visa, including benefits for family members.
Initial registration covers off-plan property purchases or ready properties before their full transfer. It ensures the buyer’s rights are protected.
Yes, all real estate transactions must be registered with the Dubai Land Department to be legally valid.
Consider your long-term goals:
- Freehold for full ownership and appreciation potential.
- Leasehold for lower upfront costs and community amenities.
Property registration is done through the Dubai Land Department or authorized Real Estate Registration Trustee centers located throughout the city.