Dubai Property Buying Checklist: A Complete Guide for Smart Investors

Business Apr 18, 2025 14 Add to Reading List

Purchasing real estate in Dubai is an appealing opportunity, whether you're an expat seeking a new home or an investor looking for long-term returns. The city’s property market offers high rental yields, zero property taxes, and world-class infrastructure. However, before jumping into this vibrant market, it’s crucial to have a well-organized Dubai property buying checklist to guide your journey.

Understand Your Purpose

The first step is to determine your buying objective. Are you purchasing the property to live in, rent out for passive income, or hold as a long-term investment? Your goal will significantly influence the type of property, budget, and location you choose.

Set a Realistic Budget

Budget planning goes beyond just the purchase price. Here are key costs to consider:

Dubai Land Department (DLD) fee: 4% of the property price
Real estate agent fee: Approximately 2%
Mortgage fees (if applicable): Bank processing and valuation fees
Registration fee: AED 4,000 for properties above AED 500,000
Service charges: Annual maintenance charges vary by property type

Having a comprehensive view of your financial commitment ensures you're prepared for the full cost of the investment.

Choose the Right Location

Dubai offers diverse communities, each catering to different lifestyles. Popular areas include:

Downtown Dubai – Luxury high-rises, close to Burj Khalifa and Dubai Mall
Dubai Marina – Waterfront living and high rental returns
Jumeirah Village Circle (JVC) – Affordable for families and investors
Business Bay – Ideal for professionals working in the city center

Evaluate the area's connectivity, nearby amenities, and potential for capital appreciation.

Decide Between Freehold and Leasehold

Foreign investors can buy freehold properties in designated areas, granting full ownership. Leasehold properties, on the other hand, are leased for up to 99 years, primarily from the government or Emirati owners. Freehold properties offer more control and flexibility.

Research the Developer

If buying off-plan, verify the developer’s credentials. Choose projects from RERA-registered developers with a proven track record. Always request a copy of the floor plan, delivery timeline, and escrow account details.

Secure Mortgage Pre-Approval

If you’re not buying in cash, get a mortgage pre-approval from your bank. It helps you understand your borrowing capacity and speeds up the buying process. UAE banks usually finance up to 80% of the property value for residents and 50-60% for non-residents.