The Step-by-Step Process of Buying Property in Dubai to Invest In

Dubai has become one of the world’s top real estate investment destinations due to its high rental yields, tax-free income, modern infrastructure, and business-friendly policies. However, navigating the legal, financial, and procedural steps of buying property in Dubai can be complex, especially for international investors who are unfamiliar with the local laws and real estate terminology.

This white paper provides a complete, step-by-step guide to help beginners understand and navigate the process of buying property in Dubai. It includes definitions of key terms, government regulations, legal documentation, financing options, visa pathways, and long-term investment strategies. All steps are backed by official sources and include links to relevant websites and downloadable forms.

Whether you are looking to buy your first overseas property or expand your investment portfolio, this guide aims to simplify the process and empower you to make informed decisions, step-by-step.

Glossary of Key Terms & Acronyms (For Beginners)

To make the rest of this guide easy to follow, here are the key terms and acronyms used in Dubai property investment — all explained in plain language:

DLD – Dubai Land Department
The official government authority that manages all real estate records, property transfers, and ownership laws in Dubai.
https://dubailand.gov.ae/en 

RERA – Real Estate Regulatory Agency
A part of DLD that regulates the real estate market. RERA licenses brokers and developers and ensures transparency and legal protection for buyers and sellers.
https://dubailand.gov.ae/en/about-us/partners/rera/ 

MoU – Memorandum of Understanding
A non-binding agreement signed by the buyer and seller to confirm the intention to proceed with the sale. In Dubai, this is officially known as Form F, issued by RERA.

SPA – Sale and Purchase Agreement
The legal contract that locks in the property purchase. For ready properties, it may be Form F. For off-plan (under construction) projects, it’s a contract between the buyer and the developer.

NOC – No Objection Certificate
A certificate provided by the property’s developer confirming that there are no outstanding payments or disputes. Required before ownership can be transferred.

LTV – Loan-to-Value Ratio
The percentage of a property’s value that a bank will lend to the buyer. In Dubai:

• Expats: typically up to 75%

• UAE Nationals: up to 80%
  You pay the rest as a down payment.

Escrow Account
A bank account regulated by the government, used especially for off-plan properties. It holds your money securely and only releases it to the developer when legal construction milestones are met.

Ejari
The mandatory system for registering all rental contracts in Dubai. Without Ejari registration, your tenancy agreement is not legally enforceable.
https://www.ejari.ae/ 

Title Deed
The legal ownership certificate you receive from DLD after completing a property purchase. This proves that you are the legal owner.

Dubai REST App
An official smartphone app by DLD to manage your property portfolio, verify property ownership, check service charges, and more.
https://dubailand.gov.ae/en/about-us/smart-services/dubai-rest/ 

RERA Forms (A, B, F)
Standard forms required by RERA to complete a legal property transaction:

• Form A – Agreement between seller and their agent

• Form B – Agreement between buyer and their agent

• Form F – Agreement between buyer and seller (MoU or SPA)
  https://www.bayut.com/mybayut/guide-rera-forms-dubai/ 

  
  

Step 1: Define Your Investment Goal

Start by opening a blank text document or a notebook.

Write down why you want to buy property in Dubai. Your reason might be to generate rental income, to benefit from capital appreciation by reselling in the future, or to qualify for a residency visa. Be specific. For example, write: "I want to buy a studio apartment in Dubai Marina to rent out long-term for passive income."

This goal will guide your budget, location, and property type.

Step 2: Set a Realistic Budget

Open a spreadsheet or a simple calculator.

List your total available funds in dirhams (AED). Then account for these typical additional costs:

• Four percent of the property price for the Dubai Land Department transfer fee.

• Two percent of the property price for the real estate agent commission.

• Administrative fees, which include trustee registration (around AED 4,000), the No Objection Certificate (usually between AED 500 and AED 5,000), and possibly mortgage registration (0.25 percent of loan value).

• If you plan to rent out the property furnished, budget five to ten percent of the property value for furniture and setup.

• It is also advisable to reserve five to ten percent of your budget as a contingency.
  
  

If you're not paying in cash, you will typically need at least 25 percent of the property price for the down payment as a non-resident investor, plus the additional fees mentioned above.

Step 3: Research the Dubai Market

Filter listings based on your budget and goal. Choose areas where foreigners can buy freehold property. Common freehold areas include Jumeirah Village Circle, Dubai Marina, Downtown Dubai, Business Bay, and Arjan.

Focus on properties that match your budget. Review the size, price per square foot, service charges, and developer reputation. Save the URLs of three to five properties you find interesting.

Do not rush. Take a day or two to explore and understand how different areas and property types are priced.

Step 4: Contact a Licensed Real Estate Agent

Click on a property listing that you saved and look at the agent’s name.

Visit dubailand.gov.ae. Navigate to the “Real Estate Brokers” section (under Services > Real Estate Services > Brokers List) and search for the agent’s name to confirm that they are registered with RERA (the Real Estate Regulatory Agency).

Contact the agent through the website or call the listed number. Ask whether the property is still available and request similar options within your budget. If you are overseas, ask if the agent can schedule a virtual viewing. If you are in Dubai, request an in-person visit.

Deal only with licensed agents or well-known brokerages. Never send money or share personal documents unless the agent is verified.

Step 5: Get Mortgage Pre-Approval (Optional)

If you require financing, this is the time to get pre-approved.

Prepare the following documents:

• A clear scanned copy of your passport.

• Proof of income, such as salary certificates or a business license.

• Six months of personal bank statements.

• A credit report from your home country, if applicable.
  
  

You can either approach a bank in the UAE directly or use a mortgage broker service. 

Submit your documents and wait for pre-approval. This letter confirms the loan amount you are eligible for and the general terms (interest rate, tenure). It is usually valid for 60 to 90 days and helps you move quickly once you find a suitable property.

If you are buying in cash, you can skip this step.

Step 6: Choose a Property and Make an Offer

Once you have identified the property you want, inform your agent that you are ready to make an offer.

The agent will usually prepare a Memorandum of Understanding (called Form F), which outlines the terms of the sale, the property details, and both parties’ responsibilities.

You will be required to pay a deposit to reserve the property. This is typically five to ten percent of the property price and is held in escrow or by the agent.

Review Form F carefully. Ensure that all details match your agreement, including the property number, price, transfer date, and who pays for what. Once signed by both parties, the property is considered reserved for you.

Step 7: Obtain a No Objection Certificate

Your agent or the seller will now apply for a No Objection Certificate (NOC) from the developer of the building or community.

The developer will issue this certificate after confirming that there are no outstanding service charges or violations linked to the property. In most cases, the buyer pays the NOC fee, which ranges between AED 500 and AED 5,000 depending on the developer.

This step is necessary before the property can be transferred at the Dubai Land Department.

Step 8: Finalize the Property Transfer

Your agent will schedule a transfer appointment at a DLD-approved Trustee Office. This is where the property ownership is officially transferred to your name.

Attend the appointment with the following documents:

• Your original passport.

• A copy of the signed Form F.

• The No Objection Certificate.

• A manager’s cheque (banker’s cheque) for the purchase amount, made out to the seller.

• Any mortgage paperwork if you are financing the property.
  
  

You will also need to pay:

• Four percent DLD transfer fee.

• Trustee registration fee (approximately AED 4,000).

• Mortgage registration fee (if applicable).
  
  

After completing the formalities, you will be issued a new Title Deed in your name. This document confirms that you are the legal owner of the property.

Step 9: Register the Tenancy Contract (Ejari)

Once you legally own the property, you must register your tenancy contract in the Ejari system if you intend to rent it out, either short-term or long-term.

To do this, follow these steps:

1. Visit the official Ejari registration portal at ejari.dubailand.gov.ae or use the Dubai REST mobile app.

2. Create an account if you don’t already have one.

3. Upload the required documents:
   
   

   • A copy of the signed tenancy contract (this can be with your own company, a tenant, or even yourself, depending on use).

   • A copy of your new Title Deed.

   • Your passport.

   • Emirates ID (if you already have one).

   • DEWA (Dubai Electricity and Water Authority) premises number.
     
     

4. Pay the Ejari registration fee online (around AED 220).

5. You will receive a digital Ejari certificate once approved.
   
   

This certificate is legally required for all utility registrations, visa applications, and for renting the unit.

Step 10: Set Up Utilities and Services

After registering Ejari, you can now open a DEWA (Dubai Electricity and Water Authority) account to activate water and electricity services.

Steps:

1. Visit dewa.gov.ae and select “Move In” services under the “Consumer” tab.

2. Apply as a new customer using your Ejari certificate, Emirates ID or passport copy, and Title Deed.

3. Pay the security deposit (currently AED 2,000 for apartments or AED 4,000 for villas).

4. DEWA will typically activate your utilities within 24 to 48 hours.
   
   

If the property is newly built, additional service connections (like air conditioning, telecoms, and chiller) may also need to be arranged separately, depending on the developer.

Step 11: Apply for a Residency Visa (Optional)

If your property purchase qualifies, you may apply for a renewable residency visa through the Dubai Land Department. This is available to property investors who meet the following basic criteria:

• Own one or more properties with a combined value of at least AED 750,000.

• The property must be completed and not under mortgage (or at least 50% of the mortgage must be paid).

• The property must be residential, not commercial or off-plan.
  
  

To apply for a visa, follow these steps:

1. Visit dubailand.gov.ae and navigate to “Investor Visa Services” or go directly to the Dubai REST mobile app.

2. Upload the required documents:
   
   

   • A copy of your Title Deed.

   • A copy of your passport and recent passport photo.

   • Current visa or entry stamp (if in the UAE).

   • Bank statements showing proof of payment (in some cases).
     
     

3. Wait for initial approval from DLD.

4. Once approved, complete the following:
   
   

   • Medical test at an authorized center.

   • Emirates ID biometric scanning.

   • Visa stamping in your passport.
     
     

The visa is typically valid for 2 or 10 years depending on property value, and may be renewable if you maintain ownership.

Note: You must remain inside the UAE for part of this process. A visa consultant or your property broker may assist for an additional fee.

Step 12: Rent Out or Manage Your Property

With the legal and administrative tasks complete, you are now ready to either rent out the property yourself or appoint a management company.

You have two main options:

1. Long-term rental (1-year contracts):

• Sign a standard tenancy agreement with a tenant.

• Register the contract with Ejari.

• Collect annual rent by post-dated cheques or bank transfer.

• Manage maintenance and communication with the tenant directly or via an agent.
  
  
  

2. Short-term rental (Airbnb-style):

• Register your property as a Holiday Home via Dubai’s Department of Economy and Tourism.

• Obtain a short-term rental permit via visitdubai.com or the DET e-services portal.

• Furnish the property fully and list it on platforms like Airbnb, Booking.com, or via a licensed operator.

• You may do this directly, or appoint a licensed short-term rental management firm.
  
  

If you are not residing in Dubai, hiring a property manager can simplify all tasks related to leasing, maintenance, and dealing with tenants.

Step 13: Maintain Compliance and Financial Records

Once the property is rented, make sure you:

• Renew your Ejari contract each year.

• Keep utility bills paid and property maintenance up to date.

• File records of rental income and expenses for tax or reporting purposes in your home country.

• Respond promptly to any notices from the Dubai Land Department or community management company.

• Renew your visa or trade license if you are using the property to maintain UAE residency.

Step 14: Understand Ongoing Ownership Obligations

Once you own a property in Dubai, you are responsible for a few ongoing legal and financial obligations, whether or not you live in the property.

These include:

1. Service Charges
   
   

   • These are fees paid annually to the building’s or community’s management company for security, cleaning, amenities, and maintenance of common areas.

   • They are calculated based on the size (square footage) of your property and are payable even if your unit is vacant.

   • You can check current service charge rates by logging into the Oqood system (via Dubai REST app or dubailand.gov.ae).
     
     

2. Utility Bills (If Not Rented)
   
   

   • If your unit is not rented out, you will still need to ensure basic DEWA bills are paid or temporarily disconnected properly to avoid penalties.
     
     

3. Compliance with Community Rules
   
   

   • If renting short-term, confirm your community allows holiday homes. Not all buildings permit them.

   • Violating these rules can result in fines or license cancellation.
     
     

4. Property Insurance (Optional but Recommended)
   
   

   • You may take out property insurance to protect against fire, flood, or tenant damage. This is not required by law but may be required by mortgage providers.
     
     
     

Step 15: Renew Licenses, Visas, and Contracts

To stay compliant, set annual reminders for the following renewals:

1. Ejari Registration
   
   

   • This must be renewed yearly when you renew or change tenants.

   • Failure to renew can result in utility disconnection.
     
     
     

2. Holiday Home Permit (If Short-Term Letting)
   
   

   • The license must be renewed annually via the Department of Economy and Tourism website.
     
     
     

3. Investor Visa or Residence Visa
   
   

   • If you are on a property-linked visa, renew before expiry.

   • Visa renewal usually requires proof that you still own the property and that it meets the minimum value requirements.
     
     
     

4. DEWA Account
   
   

   • Keep bills paid. You may also request a temporary disconnection if the property is empty for extended periods.
     
     
     

Step 16: Keep Records for Your Home Country

Even though Dubai has no property tax, you may be liable to declare foreign property income in your home country, depending on its tax laws.

Steps to follow:

1. Maintain a digital folder with:
   
   

   • Purchase agreement (Form F)

   • Title deed

   • All fee receipts (DLD, agent, trustee, NOC)

   • Tenancy agreements and rental income records

   • Mortgage payment summaries (if applicable)

     
     
     

2. Consult a tax professional in your country to determine if and how you should declare your Dubai income and property ownership.
   
   

3. Some countries have Double Taxation Agreements with the UAE; in such cases, your tax liability may be reduced or waived.
   
   
   

Step 17: Plan Your Exit or Reinvestment Strategy

Once the property has appreciated or served its purpose, you may want to sell or reinvest.

To sell:

1. Contact your agent and get a new property valuation.

2. Ensure service charges and maintenance dues are cleared.

3. Prepare to go through a similar process as when buying:
   
   

   • Draft Form F

   • Obtain new NOC

   • Attend DLD Trustee Office for transfer

   • Cancel existing Ejari and visa (if linked)
     
     

To reinvest:

1. Use profits or equity from one property as down payment for another.

2. Some banks allow equity release or refinancing on Dubai property if its value has increased.

3. Reapply for visa or transfer it to the new property.
   
   
   

Step 18: Common Mistakes to Avoid

Many first-time Dubai investors face issues due to poor planning or rushing. Here are common pitfalls:

1. Not confirming agent’s RERA license
   
   

   • Always verify on dubailand.gov.ae under “Real Estate Brokers”.
     
     

2. Buying in a non-freehold zone
   
   

   • Foreign investors can only buy in designated freehold areas.
     
     

3. Underestimating fees
   
   

   • DLD, agent, NOC, mortgage registration, and admin fees can add 6 to 8 percent or more to the property price.
     
     

4. Failing to register Ejari
   
   

   • This leads to legal and utility issues.
     
     

5. Not researching service charges
   
   

   • High annual charges reduce your return on investment.
     
     

6. Trying to self-manage remotely without experience
   
   

   • Hire a licensed property manager if you’re not based in Dubai.
     
     

7. Assuming a residency visa is automatic
   
   

   • Visa eligibility has financial thresholds and rules. It is not granted by default with any property.

     
     
     

Final Step: Completion and Compliance Checklist

Use the following checklist to verify you have followed all legal steps correctly:

• Defined a clear investment goal (rental income, resale, visa)

• Established a full budget including fees and deposits

• Researched listings and identified preferred areas

• Verified agent license with RERA

• Obtained mortgage pre-approval (if applicable)

• Submitted offer and signed Form F (MOU)

• Paid deposit and reserved the property

• Received the developer’s No Objection Certificate (NOC)

• Attended property transfer appointment and received Title Deed

• Registered Ejari tenancy contract

• Activated DEWA and other utilities

• Applied for and received investor visa (if eligible)

• Rented out or appointed a property manager

• Saved all documentation and prepared for tax obligations

• Set reminders for all annual renewals (Ejari, license, DEWA, visa)
  
  

  
  Check out our comprehensive walkthroughs of the process in investing in Dubai Real Estate:

  • The UK Investor's Guide to Buying Property in Dubai

  • The US Investor's Guide to Buying Property in Dubai

  • The Canadian Investor's Guide to Buying Property in Dubai