15 Things to be aware of when buying property in Dubai

  Buyer's Guide

Buying property can be a thrilling and nerve-wracking experience for anyone, regardless of whether it’s their first time or they’re a seasoned investor. We provide a rundown of the most significant considerations that need to be made before purchasing a home in Dubai.

Are you thinking about making the transition from being a renter to a homeowner? You are about to enter into one of the most significant obligations of your life, both financially and emotionally, and it goes without saying that this will be one of the most significant steps of your life. For the purpose of making the procedure as fruitful and trouble-free as is humanly possible, we have outlined the most crucial considerations to make in order to get you started on your journey.

The demand for real estate in Dubai has greatly expanded in recent years as a result of the enormous number of new migrants who have settled there. Because of this, the real estate industry in Dubai became the most competitive and demanding sector not just in the UAE but also everywhere else in the world. Consequently, investing in the real estate market in Dubai is going to be the best choice you can make from the perspective of making money through investments.

But things could turn out differently as you anticipated. If you attempted to purchase Dubai real estate without the assistance of local real estate professionals, you may have encountered some difficulties. As one of the leading real estate companies, the question that we get asked the most frequently is. How can we ensure that we are purchasing the most desirable real estate in Dubai?

Things to be aware of befor buying property in Dubai


How long have you been living in Dubai, and for how much longer do you intend to make it your permanent residence? When calculating your possible rate of return on investment, the answers to these questions are critical considerations. If you do not know what your long-term intentions are or how committed you will be to the area, renting can be a better option for you than buying a home there.

Purpose of buying:

Everything starts with the end in mind! Before you buy a property in Dubai, you need to know why you want to buy one. Whether you buy Palm Jumeirah villas for sale or high-end villas. You must be sure about what will happen next. If you only want to use it for yourself. You need to think about things like schools, hospitals, airports, and grocery stores. But if you want to invest, you should look at what the future holds and where the property is.


A rule of thumb around the world is that your monthly housing costs shouldn’t be more than 30% of your salary. It’s also important to set aside money for upfront fees, which can be about 7% to 8% of the purchase price. As an owner, you’ll have to pay the annual service fees as well as ongoing maintenance fees.

Before buying a property in Dubai, the most important thing to think about is your budget. Aside from the value of the property, there are many other fees, like legal fees, deposits, and maintenance costs. Also, before you decide how much you can spend on a house in Dubai. You must undertake your current financial situation and future plans. If you don’t have much money, you can also think about going to a bank or other lending institution. So, make sure you have the OK before the payment period begins.

The following is a list of the many fees that are applicable when buying property in Dubai:

Dubai Land Department (DLD) Fees (Transfer Fee)4% of the purchase price + AED 580 admin fee
Property Registration FeeFor properties valued below AED 500,000: AED 2,000 + 5% VAT
For properties valued above AED 500,000: AED 4,000 + 5% VAT
Real Estate Agent Fees2% of the purchase price + 5% VAT
Bank Mortgage Arrangement Fee1% of the loan amount + 5% VAT
Dubai Land Department Mortgage Registration Fees0.25% of the loan amount + AED 290
Property Valuation FeeBetween AED 2,500 – AED 3,500 + 5% VAT

The Dubai Land Department will assess annual maintenance charges against your property. These charges are calculated using the RERA Service Charge and Maintenance Index. You are responsible for paying these charges. This index, which differs from community to community, calculates a certain rate per square foot. The DLD’s website is the best place to find up-to-date information on fees.


When you are thinking about purchasing a home, the amount of the down payment is often the single most critical consideration. In accordance with the regulations of the UAE Central Bank, the minimum deposit that is required for properties with a purchase price of less than AED 5 million is twenty-five percent of that amount for foreign buyers and twenty percent for local buyers. Your down payment cannot be financed by a personal loan received from a local bank; rather, the funds for the down payment must come from your own personal resources. Personal loans, on the other hand, are an option for financing the up-front transaction costs, agent fees, and bank fees that were discussed previously.

Profits from renting:

Thinking more long-term, if you want to convert your home into an investment property in the future, it is important to evaluate whether or not the projected rental income will be sufficient to cover your monthly mortgage repayment and maintenance expenses. This is something you need to do in order to determine whether or not this is something you want to do.

Residence visa:

If your property is worth more than one million Dirhams (AED), you may be eligible for a resident visa in the United Arab Emirates through its ownership, provided you satisfy certain requirements. You can choose between a multi-entry visa that is valid for six months or a residency visa that is valid for two years. Additionally, property owners have the ability to sponsor a visa for members of their immediate family.
If your property has a value of more than 5 million AED, there should be no mortgage tied to it, and you should keep it for at least three years for it to qualify you for a five-year resident visa. This, however, is subject to certain eligibility requirements.


Take into account the number of people in your family, where you are in life, and the way you live. Is the property located in close proximity to any schools or daycare centers? What are the typical travel times from the property to your place of employment or the schools where your children are enrolled? Is it simple to use the public transportation system? Are places to eat and drink, as well as places of cultural interest and places to go out at night, significant to you? Does the community you’ve picked provide sufficient opportunities?


To reiterate, taking into account the number of people in your household, does the size of the home satisfy your requirements? Do you intend to start a new member of the family in the not too distant future? Are you on the hunt for a home with a sizable backyard for your children?


The importance of accurately appraising floor designs and layouts becomes clear when one considers the fact that not all square footage is created equal. Are you interested in living in an open-concept space? Are you interested in living areas that are vast, or do you prefer larger bedrooms?


Have you given any thought to how long the house has been on the market? If you are buying a house before it has been built, find out if it was built by a respected developer. Do any repairs or updates need to be made to the property before it can be put up for sale on the secondary market?
Conditions on the market: Maintain a current awareness of the market trends in the community that you have chosen. Is now a good time to make a purchase? Are rental prices declining? What are the current yields on rental properties?

Project developer

The support of project developers is required in order to build the home of your dreams in Dubai. In contrast to the majority of other countries, you are not permitted to build your own home. You need to make it a priority to hire a builder who has a solid reputation in the community. In Dubai, there are a few different reputable and experienced project developers. The finest piece of advice I can give is to do extensive study and check up on the performance in the past. If the job is completed by unqualified individuals, it will ultimately result in a loss of money.

The developer of the project will be able to begin construction of the building once it has been determined where it will be situated. It is imperative that you hold multiple meetings with the developer of the project in order to complete the design. At the end of the process, the building will be handed over to the maintenance firm once it has been planned for the first year.

Establishment Specializing in Maintenance

After the construction has been finished, as was described earlier. The maintenance business sees to it that all concerns are addressed. The Maintenance Company, on the other hand, is chosen by the project developer. If the party does not fulfill its obligations under the contract, the agreement might be canceled. Therefore, prior to purchasing a property in Dubai, you should investigate the reputation of the maintenance and management business that is in charge of the building.

Construction year

Since Dubai is not considered to be a historical city, the majority of the items that can be found there did not exist more than half a century ago. Despite this, Dubai has gained a significant amount of notoriety in recent years due to its remarkable architecture and nightlife. Due to the fact that Dubai is not a city with a long history, the majority of the city’s development and building date back no more than ten to twenty years. More people are settling in Dubai, which has led to an increase in the number of construction and development projects.

Investing in off-plan real estate in Dubai has traditionally been very popular among investors. People are interested in off-plan projects in Dubai because they anticipate earning a great return on their investments and finding suitable payment plans.

Developer’s Warranty

You don’t need to worry as much about the state of the infrastructure in Dubai because most of the building work has been completed in the past few years, as was indicated earlier. But despite this, there are a few things that must not be overlooked at any cost.

In the event that any structural damage occurs after the project has been completed, the developer shall be held accountable for a maximum duration of ten years. Additionally, if the structure has already gone beyond the period of the warranty, which is ten years. In this scenario, the homeowner is the one who is obligated to pay for and oversee any necessary maintenance or repairs.

The right time

The real estate market in Dubai is subject to ups and downs much like any other industry. This indicates that there is never a bad time to either buy or sell property. If you are looking to buy property in Dubai, the greatest time to do so is when the market is calm, prices are reasonable, and developers are delivering exceptional services to buyers. When buyers are interested in purchasing properties, this indicates that now is the best moment to sell a house in Dubai.

Monitoring unfinished projects

One of the most typical and costly errors made by purchasers of real estate in Dubai is an excessive level of faith placed in real estate agents. Dealmaking requires a high level of both self-assurance and trust in one’s partner. Credulity, on the other hand, can make things more difficult for you. You are required to inquire with the real estate agent about the availability of evidence that the land department has issued the land before you acquire property that is under construction.

Read the details of the deal carefully

Just don’t put any stock in what the real estate agent has to say. Instead, make sure you get a formal agreement to use as proof. As soon as you have the agreement in your possession, you must ensure that you read it in its entirety and comprehend each and every provision that it contains. In addition, the written agreement can be used as evidence in court if the case is brought against you.