May 20 2019   | Source: Times Square Chronicles 

Things to Know Before Buying a Property in Dubai as a Foreigner

Dubai is a place where extravaganzasees its true meaning. It’s lavish, it’s hypnotically beautiful, it’s authentically luxurious, and above all, it’s welcoming. The past decade has been a blessing to Dubai, the expat opportunities are booming, real-estate investments are skyrocketing, and tourism is ever increasing–thanks to word of mouth references from returning visitors. The predictions are in favor of Dubai, as the popularity continues to increase, a steady stream of Asian expats travel here to extract benefits from the well-rounded destination. 

If you are considering a move to the desert paradise, then here’s a complete guide on how to buy a property in Dubai, as a foreigner:

Going back to 2002, when expats population was only a “just” number, and real estate investment opportunities were limited to only locals, things have changed since then. The middle eastern hotspot now has well-defined policies in place that are in favor of real-estate investors. Thanks to the altered policies in 2002, foreigners can buy, sell, and rent a villa, house, apartments, or studio apartments in Dubai.  

Property fees:Dubai Land Department or DLD charges 4 % of the whole property amount in which 2% goes to the seller, and 2% goes to the property agent. In case you are buying a property listed in bayut, even then you are required to consult the agent for cross-checking the availability, legal disputes, and ground price of the property. Please note that there are plenty of potential real estate scams active in the streets of Dubai, so it is suggested to conduct a full online as well as offline investigation of property and agent profile. 

Bank Fees: Expats are required to pay 25 percent of the whole amount as a down payment protocol. The UAE nationals pay 20 percent of the amount in cash to the seller. Banks in Dubai offer expat loans so potential investors can have nearly 70% of the real-estate amount financed by Bank. It is suggested to analyze, verify, and compare the property interest rates offered by all Dubai banks. Depending upon the bank, interest rates range from 2.99% to 5%. Before granting the loan, property valuation consultants evaluate the ground status of the property and charge around Dh2,500 up to Dh3,000, which is exclusive of the loan amount. In addition to this, the bank mortgage establishment fee could extend to 1% of the whole loan amount. It is advised to conduct full end-to-end fee and property price analysis before committing to any mortgage amount since there can be huge fluctuations in pricing, depending upon the property location in Dubai. 

Associated Life Insurance:It is a mandatory practice in Dubai, to have additional life insurance when your bank loan amount is granted. Majority of Banks in Dubai will charge you an additional amount for life insurance. The life insurance policy is the only way a loan amount is sanctioned as it is perceived as a guarantee from the buyer. The loan insurance amount varies from an individual’s health conditions to his/her age. However, it is not important to have life insurance from the Bank that provides you with a loan; external life insurance resources can be explored and adopted as well. 

Developer’s Property Service Charges:After the finalization and fulfillment of all the necessary fees, documentation and approvals, the last step resolves to the buyer paying an extra service charge to the developer of the property. This service charge is calculated on a pro-rata basis and paid according to the agreement decided in between the buyer and the developer. 

Usually, the service charge is paid annually, and in response to the payment, the property developers are required to maintain landscaping, cleaners, security, communal electricity, building insurance, and pest control. The service charge is calculated based on per square feet (sq. ft.), for example, there is a minimal charge of Dh15 per square feet followed in Dubai, and this will also depend upon the property location and type. 

Renting vs. Buying? The Final Argument

Until the mortgage is paid off, owning a property in Dubai comes with additional financial pressure, which can be dealt with since the property is in your name. When it comes to renting, the pressure is less as a monthly rental in Dubai closes to be around Dh5,000 or even less, depending upon the property type and location. Arguments for Buying, you can always earn through rent as rentals in Dubai increase every month, and owing to expat movements, the demand is more than supply. 

Mortgage pressure in Dubai can be paid off as both rental and employment opportunities are prospering every year, which means nearly 40% of the mortgage amount will come back to you in no time and fewer efforts. 

Want to live in designer residences with private beach access?

1, 2, 3, and 4 bedroom apartments designed by Elie Saab located at Emaar Beachfront. Contact for more information.

Subscribe to’s Mailing List to receive property news and opportunity alerts.