Property Basics
Only licensed agents registered with RERA can advertise and sell properties. If you, as a private owner, want to sell your apartment, you can do so, but you must involve an official intermediary to complete the transaction. This ensures all transactions are regulated and secure.
In Dubai, not only Emirati citizens can buy property, but foreigners as well. This means that if you are Hungarian, German, or a citizen of any other country, you can become a full owner in certain so-called freehold areas. As a buyer, you do not necessarily need to appear as a private individual—you can also purchase through a company. To buy property, a valid passport is enough. There is no need to provide proof of income or bank statements.
In Dubai, apartments are generally more spacious than in many European cities. A 1-bedroom apartment averages 60–80 sqm, a 2-bedroom 100–130 sqm, and a 3-bedroom 140–180 sqm.
Prices vary depending on location and developer, but roughly: * 1-bedroom apartment: about AED 1.2 – 1.8 million (EUR 110,000 – 160,000) * 2-bedroom apartment: about AED 2 – 3 million (EUR 185,000 – 280,000) * 3-bedroom apartment: about AED 3.2 – 4.5 million (EUR 300,000 – 420,000)
In premium districts (e.g., Downtown, Palm Jumeirah), prices can be much higher, while in emerging communities (e.g., MBR City, JVC, Dubai Hills), better value for money can be found.
How are property prices determined in Dubai?
Unlike Europe, property pricing in Dubai is not based on a fixed price per square meter (or square foot). Prices are influenced by several factors: * Developer – premium names cost more. * View – apartments facing the sea, city, or desert are more valuable. * Floor – the higher, the more expensive. * Size – not always proportional to price. * Furnished or not – turnkey apartments cost more. * District – there can be up to an eightfold difference between neighborhoods.
Price range: In simpler areas, around AED 1,000/sq.ft, while in premium waterfront locations, up to AED 8,000/sq.ft.
Currently, Dubai has 2,500 developers and more than 300,000 properties under construction. Pricing is always project-specific, not standardized. The overall picture matters—not just the square meters.
The Dubai property market has shown massive growth in recent years. According to official statistics, market transactions in 2024 exceeded AED 400 billion. Rental returns (ROI) from properties are usually 6–10% annually, which is much higher than in many European countries. For some premium projects, this rate can even reach 12–20%. Prices are also rising steadily: in the past 3 years, annual growth of 8–15% was seen, and in certain luxury projects even 30–40%.
Financing a Property
The property price must officially be paid in dirhams (AED), but in most cases, transfers in euros or dollars are also possible, and the bank will automatically convert the amount. For foreigners, classic bank mortgages for off-plan properties are rarely available, but due to flexible payment plans, they are usually not needed. Developers offer very flexible installment plans. For example, you may be required to pay 20–40% of the price at booking, and the rest in scheduled installments during construction. Some options even allow you to pay only 1% of the purchase price monthly, so the purchase is not a single heavy burden. It is also possible to apply for a bank loan from a Dubai bank as a foreigner, but typically they require a 40–60% down payment.
If you buy with installment payments, the payments must be made directly to the developer’s official account. The main point of contact is usually the developer’s customer service or a dedicated account manager who assists you throughout the purchase process.
If the project is officially canceled, or if the developer breaches the contract, the investor gets their money back. In such cases, the Dubai Land Department handles refunds through a special account. Normally, however, if you decide to cancel the contract yourself, the conditions are defined in the contract, and the refund is not always full. That’s why it is important to know the rules in advance.
Yes, but usually only after paying a certain % of the property price (varies by developer, often 30–40%).
No annual property tax. You only pay the one-time DLD fee at purchase.
There is no income tax in Dubai. Rental income is tax-free locally (but you may need to declare it in your home country).
Legal Issues
A Dubai residence visa is one of the biggest advantages of property investment, but it is important to clarify the order: first, you must buy the property, and only then can you apply for the visa. To buy property, a valid passport is enough.
The visa is crucial because, without it, you cannot open a bank account in the United Arab Emirates. A local bank account is essential for long-term management, such as receiving rental income, paying utility bills, or applying for a loan. So, if someone wants to invest, they must first buy the property, then apply for the visa based on the Title Deed, and only afterward can they open a bank account.
There are basically three ways to obtain a visa: 1. Employment visa – if officially employed by a Dubai company – valid for 2 years. 2. Company owner visa – if someone establishes their own company in the UAE – valid for 2 years. 3. Property investor visa – if someone buys property worth at least AED 750,000 – valid for 2 years.
The property investor visa also has categories: • For property above AED 750,000, usually a 2-year residence visa can be applied for. • For property above AED 2 million, a Golden Visa is issued, valid for 10 years and renewable. This extends to family members, meaning the spouse and children are also eligible.
It is possible to buy property in Dubai without a visa, but without one, you cannot open a bank account. Therefore, anyone who wants to invest long-term and rent out will essentially need to obtain a visa - and a bank account.
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When someone shows interest in a Dubai property, the developer or sales agent first provides an official Booking Form or offer. This is not just a price, but a complete document containing all foreseeable information and costs. A proper offer must include: 1. Exact property details – apartment size (net and gross square meters), floor number, orientation, view, and whether it is furnished or unfurnished. 2. Total purchase price and all related costs – for example, Dubai Land Department (DLD) registration fee, administration fees, notary or legal fees. All costs the buyer must pay must be listed. 3. Payment schedule – with exact dates, percentages, and amounts. For example: 10% at booking, 40% during construction, 50% at handover. This ensures the buyer knows exactly when and how much to pay. 4. Floor plan and map – the layout must always be included, along with a map showing the property’s location within the project. 5. Developer’s official name and address – so the buyer clearly knows who they are contracting with. This is crucial, as only the developer (or their official agent) is authorized to sell.
The buyer must check every point before paying the booking fee. This is crucial because booking fees are generally non-refundable if the buyer later cancels.
Most important advice: request everything in writing and do not rely on verbal promises. Always read the document carefully before signing, and ask for clarification if anything is unclear.
The Dubai system is designed to give investors maximum protection. Escrow accounts, RERA regulations, detailed contracts, and the official Title Deed all guarantee that the buyer gets exactly what they paid for.
For every new project, buyers’ funds must be deposited into an official escrow account approved by the Dubai Land Department (DLD). The developer cannot access this money freely; they can only withdraw after proving that construction has reached a certain stage. For example, once the foundations are complete, the DLD authorizes the next portion to be released. This prevents funds from being diverted to other projects.
The Dubai real estate market is supervised by RERA (Real Estate Regulatory Agency) and the DLD (Dubai Land Department). These institutions strictly monitor developers, projects, and transactions. Only officially registered developers can sell, and every project must have approval.
The official Sales and Purchase Agreement (SPA) between the buyer and the developer clearly defines what the developer must deliver: apartment size, handover date, construction quality, payment terms, and penalties for delays. It is legally binding and enforceable in court.
At handover, the buyer can inspect the apartment. If there are any discrepancies (e.g., smaller size, missing fittings, construction defects), the developer is obliged to fix them or provide compensation.
Once the buyer pays the full purchase price, the Dubai Land Department issues the official Title Deed. This proves the property is legally in their name, and no one else can claim it.
Developers
Dubai has many developer companies, but not all have the same reputation and experience. Some of the largest and safest developers include Emaar, Sobha, Danube, Meraas, and Nakheel. These companies have built major projects such as the Burj Khalifa or Palm Jumeirah. A developer’s credibility can always be checked in the official systems of the Dubai Land Department (DLD) and RERA, so you can be sure that your money is invested safely.
In Dubai, buyers are protected by strict laws. If a developer fails to deliver the property on time, under RERA regulations you are entitled to compensation, a refund, or an offer of another property of similar value. In some cases, the Dubai Land Department places project funds into a separate account, and the developer can only access them if construction is genuinely progressing. This system is designed specifically to protect investors.
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Please note, the above is neither legal nor financial advice.
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