With its tax-free environment, strong infrastructure, and investor-friendly regulations, Dubai continues to draw interest from international buyers seeking both lifestyle and long-term value. 

Buying property in Dubai has long appealed to foreign investors and expatriates. It is a trend that gained even greater momentum in the post-pandemic years. As global priorities shifted toward security, lifestyle, and return on investment, Dubai stood out for its resilience and openness. Non-UAE nationals are permitted to purchase property in designated freehold areas, making the city an increasingly attractive option for those wondering, “Can foreigners buy property in Dubai?” The answer is yes — and many already have. 

Yet, despite the opportunities, the process can be complex. From legal requirements to financial commitments, buying in Dubai requires a clear understanding of the local landscape. Being well-informed is not just a precaution. It’s essential to protect your investment. 

Mistake #1: Not Understanding Eligibility Rules 

Many first-time buyers enter the market without a clear understanding of who can purchase and where. This oversight can lead to avoidable setbacks or legal confusion. 

Can foreigners buy property in Dubai? Yes, but only in designated areas, and the type of ownership matters. 

Types of Ownership in Dubai: 

• Freehold ownership 

Full ownership of the property and the land it occupies. Buyers have the right to sell, lease, or bequeath the property without restriction. Available in designated freehold zones. 

• Leasehold ownership 

The right to occupy or use the property for a fixed term, typically between 10 and 99 years, without land ownership. Leasehold properties are often found outside freehold zones and come with separate legal considerations. 

If you’re exploring how to buy property in Dubai, your first step should be to confirm whether the property is in a freehold area and that you are eligible to purchase.  

Mistake #2: Ignoring Hidden Costs and Fees 

It’s easy to focus solely on the advertised property price when planning a purchase. However, one of the most common oversights among new buyers is failing to account for the additional expenses that accompany a real estate transaction. These can add up quickly and affect your financial planning if left unaddressed. 

When it comes to buying property in Dubai, fees and charges beyond the purchase price are a given. These may include: 

• Dubai Land Department (DLD) fee: 4% of the purchase price, paid by the buyer and usually due at the time of signing the Sales and Purchase Agreement. 

• Oqood registration (for off-plan properties): AED 5,250 or 4% of the purchase price, depending on the developer and project. 

• Agency commission: Typically 2% of the purchase price, plus 5% VAT. 

• Trustee office fee: AED 2,000 to AED 4,000 depending on the transaction value and property type. 

• Mortgage registration fee (if applicable): 0.25% of the loan amount, plus AED 290 in administrative charges. 

• Property valuation fee (for financed purchases): Generally between AED 2,500 and AED 3,500. 

• Service charges: Annual community or building maintenance fees, usually charged per square foot. These vary by location, property type, and developer. 

These costs can represent an additional 7–8% of the purchase price, depending on the nature of the transaction. Always request a detailed cost breakdown from your agent or developer early in the process.  

Mistake #3: Incomplete Documentation 

Knowing the documents required for buying property in Dubai is essential for a smooth, legally compliant transaction. While the exact requirements may vary slightly depending on whether the property is ready or off-plan, certain documents are universally necessary. 

Core documents typically include: 

• Passport copy (for all parties involved) 

• Proof of funds (bank statement or letter of financial capability) 

• Signed Memorandum of Understanding (MoU) — a preliminary contract outlining the terms of sale, signed by both buyer and seller 

• No Objection Certificate (NOC) from the developer — confirms that there are no outstanding service charges or disputes and that the property can be transferred 

• Title deed (provided by the seller for ready properties) 

• Emirates ID (if resident) 

• Mortgage pre-approval and bank documents (if financing is involved) 

• Power of Attorney (if the transaction is being completed on behalf of the buyer or seller) 

Buyers of off-plan properties may also need to submit additional forms specific to the developer or project.  

Incomplete or outdated paperwork can stall the transaction and, in some cases, put your deposit at risk. It is in your best interest to work with a licensed agent or conveyancer who can guide you through the documentation checklist. 

Mistake #4: Skipping Legal Due Diligence 

In a fast-moving market like Dubai, some buyers feel pressured to act quickly, especially when a unit appears in high demand. However, skipping legal due diligence is one of the most serious mistakes a buyer can make. 

Among the key risks of buying property in Dubai without proper checks are disputes over ownership, delays in handover, and investing in unapproved or stalled developments.  

Before proceeding with any purchase: 

• Verify the title deed to ensure the seller has legal ownership and the right to transfer the property. 

• Confirm the project’s approval status with the Dubai Land Department (DLD), especially for off-plan properties. The project should be registered with a valid escrow account. 

• Assess the developer’s track record. Look into past project delivery timelines, construction quality, and customer reviews. 

• Review the Sales and Purchase Agreement (SPA) carefully. Understand all terms, penalties, and conditions related to payment schedules, handover dates, and defaults. 

• Consult a legal advisor with experience in Dubai real estate to independently review the contract and documentation. 

Never rely solely on verbal assurances. Always request written confirmation and legal documentation before transferring any funds. 

Mistake #5: Not Understanding the Process 

While the procedure to buy property in Dubai is relatively streamlined, it does differ from what many foreign buyers may be used to in other countries. Misunderstanding the steps can lead to confusion, delays, or even missed obligations. 

Step-by-step buying process: 

• Sign the MoU (Memorandum of Understanding) 

This is a preliminary agreement that outlines the sale terms. It is typically signed at the broker’s office and includes the price, timeline, and conditions. 

• Pay the deposit 

A standard 10% deposit is paid by the buyer at the time of signing the MoU. This is usually held by the broker or trustee office until transfer. 

• Apply for the No Objection Certificate (NOC) 

The seller obtains this from the developer, confirming there are no outstanding service charges or legal issues. The NOC is required for ownership transfer. 

• Complete due diligence and mortgage processing (if applicable) 

For financed transactions, the buyer must secure final mortgage approval and submit required documentation to the bank and DLD. 

• Register with the Dubai Land Department (DLD) 

Both parties meet at a registration trustee office to complete the ownership transfer. The buyer pays the DLD fee (4% of the purchase price), plus administrative charges. 

• Title deed issued 

Once the transaction is complete, the DLD issues the new title deed in the buyer’s name. 

Engage a qualified agent or conveyancer to guide you through each stage. Missing a single step or document can delay transfer and impact your legal ownership rights. 

Benefits of Buying Property in Dubai 

When done right, the benefits of buying property in Dubai are substantial. Here are some of the key advantages you can enjoy as a property owner: 

• Attractive rental yields: Dubai offers some of the highest gross rental returns globally, with average yields ranging between 6% and 9% in many residential communities. 

• Tax-free income: There is no capital gains tax or property income tax for individuals, allowing owners to maximise net returns. 

• Residency options: Property investors may be eligible for renewable long-term residence visas, depending on the value of the asset. 

• Robust infrastructure and amenities: From world-class transport links to international schools and medical facilities, Dubai offers a high standard of living for residents and tenants. 

• Investor-friendly regulations: Transparent legal frameworks, digital registration systems, and investor protections help make the process accessible and efficient. 

• Stable currency and safe haven status: With the UAE dirham pegged to the US dollar and Dubai’s strong reputation as a secure destination, the city continues to attract global capital. 

Understanding how to buy property in Dubai, from selecting the right location to navigating the legal process, is key to unlocking these benefits. 

Final Thoughts 

Buying property in Dubai offers unique advantages you’d be hard to find elsewhere. But success ultimately depends on more than just choosing the right location. Understanding eligibility rules, preparing complete documentation, budgeting for all fees, and following the correct legal process are all critical to protecting your investment. 

If you’re unsure how to buy property in Dubai and want to avoid costly mistakes, the right guidance can make all the difference. At Key One, our mission is to make the real estate journey as rewarding as the investment itself. From property search and due diligence to transaction support and post-purchase care, we’re here to make it simple, so you can have time to focus on what matters more. 

Leave the heavy lifting to us. Get in touch with our team today to schedule a personalised property consultation.