Can foreigners buy land in Dubai?

Last updated on August 26, 2025

Authored by the expert who managed and guided the team behind the UAE Property Pack

Yes, the analysis of Dubai's property market is included in our pack

Foreigners can legally purchase land in Dubai, but only within designated freehold zones established by the government since 2002.

This comprehensive guide covers everything international buyers need to know about acquiring land in Dubai, from legal requirements and purchasing processes to costs, taxes, and long-term market forecasts. Dubai's freehold areas include prime locations like Downtown Dubai, Palm Jumeirah, Dubai Marina, and Business Bay, offering foreign investors full ownership rights comparable to UAE nationals.

If you want to go deeper, you can check our pack of documents related to the real estate market in Dubai, based on reliable facts and data, not opinions or rumors.

Quick Summary:

Yes, foreigners can buy land in Dubai within designated freehold areas with full ownership rights.

The process requires purchasing in specific zones, with transaction costs around 4-6% of property value and no annual property taxes.

Aspect	Details	Key Points
Land Ownership Rights	Full freehold ownership in designated areas	Same rights as UAE nationals
Eligible Areas	Downtown Dubai, Palm Jumeirah, Marina, Business Bay	Over 100 freehold zones available
Purchase Process	MOU signing, deposit, NOC, DLD transfer	Can be completed remotely
Transaction Costs	4% transfer fee + AED 4,000-15,000 additional costs	Total costs 4-6% of property value
Land Prices (2025)	AED 500-1,582 per sq ft	Prime areas command highest prices
Financing Options	35-40% down payment for non-residents	Interest rates 3-5% per annum
Annual Taxes	No property tax	Only one-time transfer fees apply

Who is the author of this content?

SANDS OF WEALTH

A team specialized in real estate investing in MENA countries (Morocco, UAE, Oman, etc.)

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Dubai. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At Sands of Wealth, we explore the Dubai real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Dubai, Abu Dhabi, and Sharjah. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Fact-checked and reviewed by our local expert

✓✓✓

Jean-Charles Salvin 🇫🇷

Co-Founder, Best Dubai Condos

With 13 years of real estate expertise, Jean-Charles co-founded BestDubaiCondos to guide clients in making smart, strategic property investments. As a seasoned realtor and trusted advisor, he focuses on creating personalized investment plans designed to maximize profits through Airbnb rentals and long-term income opportunities in Dubai's most desirable locations. We talked with him at the end and added his insights to improve the blog post, making it clearer and more personal.

Can foreigners buy land in Dubai?

Yes, foreigners can legally purchase land in Dubai with full freehold ownership rights.

This ownership is restricted to designated freehold areas that the UAE government has specifically marked for foreign investment since 2002. These zones include prime locations such as Downtown Dubai, Palm Jumeirah, Dubai Marina, Business Bay, and Jumeirah Lakes Towers.

Foreign buyers enjoy the same ownership rights as UAE nationals within these areas, including the ability to buy, sell, lease, and develop the land. The policy extends to both individual investors and foreign companies, making Dubai one of the most accessible markets for international property investment in the Middle East.

Non-residents can complete purchases without requiring UAE residency or citizenship, though meeting certain investment thresholds can qualify buyers for golden visas.

What types of land are foreigners allowed to buy in Dubai?

Foreigners can purchase freehold land plots designated for residential, commercial, and mixed-use development.

Residential land plots allow construction of villas, townhouses, and apartment buildings within approved community developments. Commercial land permits office buildings, retail centers, and business facilities, while mixed-use plots support integrated developments combining residential and commercial elements.

Some areas outside freehold zones offer long-term leasehold arrangements (usufruct or musataha) with lease terms extending up to 99 years. These leasehold options provide many ownership benefits while remaining outside the full freehold framework.

Industrial land purchases typically require establishment of a UAE company or freezone entity, though some designated areas allow direct foreign ownership for specific business purposes.

Are there any restrictions on land ownership for foreigners?

Land ownership for foreigners is strictly limited to government-designated freehold areas.

Buyers cannot purchase land outside these specific zones, which represent approximately 20% of Dubai's total land area. The Dubai Land Department maintains detailed maps showing exactly which areas qualify for foreign ownership.

Commercial land usage may require additional licensing and permits depending on the intended business activity. Some premium locations within freehold zones may have minimum investment thresholds or specific developer requirements.

It's something we develop in our UAE property pack.

Certain sensitive areas near government facilities, military installations, or cultural sites remain off-limits regardless of freehold designation.

What is the process for buying land as a foreigner in Dubai?

The land purchase process follows a structured six-step procedure overseen by the Dubai Land Department.

Step one involves selecting and verifying the land's freehold status through official DLD records. Step two requires negotiating terms and signing a Memorandum of Understanding (MOU) with the seller, typically accompanied by a 10% deposit payment.

Step three involves conducting comprehensive due diligence, including title verification, development approvals, and infrastructure assessments. Step four requires obtaining a No Objection Certificate (NOC) from the developer if purchasing in a master-planned community.

Step five encompasses the formal transfer process at the Dubai Land Department, including payment of transfer fees and taxes. Step six completes with title deed issuance in the buyer's name, providing full legal ownership documentation.

The entire process typically takes 30-45 days from MOU signing to title deed receipt, assuming all documentation is properly prepared.

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Can foreigners buy land remotely without being physically present?

Yes, foreigners can complete land purchases in Dubai entirely through remote procedures.

The process requires establishing a Power of Attorney with a Dubai-based legal representative or authorized real estate agent. This representative can handle all aspects of the transaction, from property viewing and negotiation to final registration at the Dubai Land Department.

Many international law firms and specialized real estate agencies offer comprehensive remote purchase services, including virtual property tours, digital document signing, and secure fund transfers. All documentation can be authenticated through UAE consulates in the buyer's home country.

Remote purchases must include proper authentication of all documents, including passport copies, financial statements, and Power of Attorney documentation. The Dubai Land Department accepts properly notarized remote transactions as equivalent to in-person purchases.

What documents do foreigners need to purchase land in Dubai?

Foreign land buyers must provide several key documents for Dubai Land Department registration.

Document Type	Requirements	Additional Notes
Passport Copy	Valid passport with minimum 6 months validity	Must be notarized if buying remotely
Proof of Funds	Bank statements or mortgage pre-approval	Must cover full purchase amount plus fees
Sales Agreement	Signed SPA (Sales and Purchase Agreement)	Must include all terms and conditions
NOC Certificate	No Objection Certificate from developer	Required for community developments
Power of Attorney	Legal authorization if buying remotely	Must be attested by UAE consulate
Banking Information	Account details for fund transfers	Required for DLD payment processing
Translation Documents	Arabic translation of foreign documents	Must be completed by certified translator

What are the costs and fees associated with purchasing land in Dubai?

Land purchase costs in Dubai include several mandatory fees paid to government entities and service providers.

The Dubai Land Department transfer fee represents the largest cost at 4% of the property's total value, typically paid by the buyer. Title deed registration costs AED 4,000 plus 5% VAT for properties exceeding AED 500,000, or AED 2,000 plus 5% VAT for lower-value properties.

Real estate agent commissions average 2% of the property value plus 5% VAT, though rates may vary for off-plan or exclusive listings. Legal and SPA drafting fees range from AED 5,000 to AED 15,000 depending on transaction complexity and law firm selection.

Additional costs include Oqood registration (AED 2,000 for off-plan properties), mortgage registration fees (0.25% of loan amount plus AED 290 for financed purchases), and various administrative fees charged by developers and trustees.

Total transaction costs typically range from 4% to 6% of the property's purchase price.

Are there taxes on land ownership for foreigners in Dubai?

Dubai imposes no annual property taxes on land ownership, representing a significant advantage for foreign investors.

Owners pay only one-time transfer fees and registration costs at the time of purchase, with no recurring taxation on the land's value or ownership. This policy applies equally to UAE nationals and foreign buyers across all freehold areas.

Property rental income from land development may be subject to a 5% housing fee based on annual rental value, but this applies only to rental properties, not vacant land or owner-occupied developments.

It's something we develop in our UAE property pack.

Some community developments charge annual service fees for maintenance, security, and amenities, but these represent service charges rather than government taxes.

What are the classic mistakes foreigners make when buying land in Dubai?

1. **Failing to verify freehold status** - Purchasing land outside designated freehold areas, resulting in invalid ownership claims2. **Inadequate due diligence** - Skipping proper title verification, developer background checks, and infrastructure assessments3. **Underestimating total costs** - Focusing only on purchase price while ignoring 4-6% in additional fees and charges4. **Using unlicensed brokers** - Working with unregistered agents who cannot provide proper legal documentation5. **Ignoring zoning restrictions** - Purchasing land without understanding permitted usage and development limitations6. **Poor location research** - Buying in areas with limited infrastructure, access, or future development potential7. **Inadequate legal review** - Signing contracts without proper legal counsel and Arabic translation verification8. **Rushed decision-making** - Making quick purchases without understanding market conditions and comparable prices

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Can foreigners use land for building homes or businesses?

Foreigners enjoy full development rights on freehold land purchases, including residential and commercial construction.

Residential development permits construction of villas, townhouses, apartment buildings, and mixed-use projects within approved community master plans. Development must comply with Dubai Municipality building codes, height restrictions, and architectural guidelines specific to each area.

Commercial development allows office buildings, retail centers, warehouses, and specialized business facilities subject to proper zoning and licensing approvals. Some areas require specific business licenses or freezone company establishment for certain commercial activities.

Foreign companies can directly own and develop land in designated freehold areas without requiring UAE national partnerships or local sponsors. The development process requires architectural approvals, construction permits, and compliance with Dubai's sustainable building standards.

What are the average prices of land in Dubai as of September 2025?

Dubai land prices vary significantly based on location, infrastructure, and development potential as of September 2025.

Area Category	Price Range (AED per sq ft)	Notable Locations
Ultra-Prime Areas	1,400 - 1,582	Downtown Dubai, Palm Jumeirah
Prime Locations	1,100 - 1,400	Dubai Marina, Business Bay, JBR
Established Areas	800 - 1,100	Jumeirah Lakes Towers, The Greens
Emerging Communities	600 - 900	Dubai South, Al Furjan, Dubailand
Developing Areas	500 - 700	Dubai Investment Park, International City
New Projects	700 - 1,200	Mohammed Bin Rashid City, Al Khail Gate
Waterfront Premium	1,200 - 1,600	Dubai Creek Harbour, La Mer

What is the long-term forecast for the land market in Dubai?

Dubai's land market faces a correction period in late 2025 and 2026 after exceptional growth since 2020.

Prices have increased over 90% from pandemic lows, reaching all-time highs in 2025, but major rating agencies including Fitch forecast a "double-digit fall" due to oversupply concerns. New project launches have accelerated significantly, potentially outpacing demand in certain segments.

Long-term fundamentals remain strong, supported by Dubai's growing population, business-friendly policies, and strategic location as a global hub. The emirate's economic diversification, infrastructure development, and Expo 2020 legacy continue attracting international investment.

It's something we develop in our UAE property pack.

Market analysts expect price stabilization by 2027-2028, with moderate growth resuming as supply-demand dynamics rebalance and economic growth continues.

Is it possible for foreigners to get a mortgage to buy land in Dubai?

Yes, UAE banks offer mortgage financing for foreign land purchases in designated freehold areas.

Non-resident borrowers must provide a minimum 35-40% down payment, significantly higher than the 20-25% required for UAE residents. Banks require comprehensive income documentation, credit history, and financial statements from the borrower's home country.

Interest rates for foreign borrowers typically range from 3% to 5% per annum, approximately 0.5-1% higher than rates offered to residents. Loan terms extend up to 25 years for younger borrowers, with maximum loan amounts generally capped at AED 10-15 million depending on the lender.

Additional mortgage costs include a 0.25% registration fee on the loan amount, mortgage insurance, and processing fees up to 1.5% of the total loan value. Major UAE banks including Emirates NBD, ADCB, and FAB offer specialized non-resident mortgage programs for qualified foreign buyers.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Dubai remains one of the world's most accessible markets for foreign land ownership, with streamlined processes and transparent regulations in designated freehold areas.

While current market conditions suggest potential price corrections in 2025-2026, the emirate's long-term growth prospects and strategic advantages continue attracting international investors seeking real estate opportunities in the Middle East.