How to invest in property in The United Arab Emirates?

Authored by the expert who managed and guided the team behind the United Arab Emirates Property Pack

Everything you need to know before buying real estate is included in our United Arab Emirates Property Pack

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 the UAE. 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 UAE 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.

How easy is it for a foreigner to invest in property in the UAE compared to Western countries?

Investing in UAE property as a foreigner is considerably more straightforward than in most Western countries.

The UAE features dedicated freehold zones where foreigners can own property outright, with no annual property taxes or capital gains taxes. This creates a more accessible market compared to Western economies that typically impose stamp duties, capital gains taxes, and complex approval processes.

Western countries often require lengthy procedures, additional documentation, and face stricter mortgage regulations. The UAE instead offers a thriving digital infrastructure that enables faster transactions, remote purchases, and streamlined government processes.

As of September 2025, the UAE's property market remains one of the most foreign-friendly globally, with transparent regulations and competitive total costs that typically run 6-8% of the purchase price—lower than markets like the UK where total costs can reach 10-15%.

The regulatory framework is clear and well-established, making it easier for international investors to understand their rights and obligations compared to markets with frequent policy changes.

What types of properties can foreigners legally buy and what are the restrictions?

Foreigners can purchase freehold properties in designated zones throughout Dubai and Abu Dhabi, giving them full ownership rights.

Available property types include apartments, villas, townhouses, and select commercial properties within these freehold areas. Popular freehold zones include Dubai Marina, Palm Jumeirah, Downtown Dubai, Dubai Hills Estate, and similar areas in Abu Dhabi.

Outside freehold zones, foreigners can only access long-term leasehold arrangements of up to 99 years. These leasehold properties offer most ownership benefits but revert to the government after the lease period expires.

Key restrictions include the inability to own non-freehold land, government-controlled properties, or certain agricultural lands. Some new-build or off-plan projects may have developer-specific restrictions on resale timing or buyer nationality.

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

Do you need to be physically present in the UAE to complete a property purchase, or can it be done remotely?

Complete property purchases can be executed remotely without requiring physical presence in the UAE.

The UAE's government and banking infrastructure fully supports digital transactions, e-signatures, and remote verification processes. Buyers can complete all documentation, financing applications, and legal requirements from their home country.

Power of Attorney arrangements through UAE embassies or consulates enable legal representation for remote buyers. This allows a designated representative to sign documents, attend meetings, and complete the transaction on the buyer's behalf.

Remote mortgage applications are accepted by most banks, with video verification replacing in-person meetings. Digital payment methods and electronic fund transfers handle all financial transactions securely.

The entire remote purchase process, including property selection, contract negotiation, financing, and registration, can typically be completed in 2-4 weeks with proper preparation and documentation.

What is the step-by-step process to buy property in the UAE as a foreigner?

Step	Action Required	Timeline
1. Property Selection	Choose property and negotiate purchase terms	1-7 days
2. Reservation	Pay reservation deposit (5-10% of purchase price)	1-2 days
3. MoU Signing	Sign Memorandum of Understanding (Form F)	1-2 days
4. NOC Application	Apply for No Objection Certificate from developer	2-5 days
5. Financing	Finalize mortgage approval (if applicable)	7-14 days
6. Payment	Complete payment via manager's cheque or bank transfer	1-2 days
7. Registration	Register property with Dubai Land Department or relevant authority	1-3 days
8. Title Deed	Receive official title deed and property ownership documents	1-2 days

Which documents are mandatory for property purchase and which ones are optional?

Property purchases in the UAE require specific mandatory documents while several others remain optional depending on your circumstances.

**Mandatory Documents:**1. Valid passport (original and certified copy)2. Bank statement or proof of funds showing purchase capability3. Visa copy (tourist visa sufficient for non-residents)4. Power of Attorney (if purchasing remotely)5. Signed sales agreement or Memorandum of Understanding6. Manager's cheque(s) for payments and associated fees7. No Objection Certificate (NOC) from the developer8. Title deed copy (for completed properties)**Optional Documents:**1. Salary certificate (primarily for mortgage applications)2. Emirates ID (for UAE residents only)3. Utility bills or additional address verification4. Employment contract (for enhanced mortgage terms)5. Bank reference letters (may improve financing options)

Remote buyers should ensure all documents are properly attested through UAE consulates in their home country. Digital copies are generally accepted for initial processes, but originals may be required for final registration.

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

What taxes, fees, and costs should you expect—can you give me a full breakdown?

Fee Type	Amount/Rate	Notes
DLD Transfer Fee	4% of purchase price	Paid to Dubai Land Department or relevant authority
Registration Trustee Fee	AED 4,000 (properties >AED 500k) AED 2,000 (properties	Fixed government fee
Real Estate Agent Commission	2% of purchase price	Sometimes negotiable
No Objection Certificate (NOC)	AED 500 - 5,000	Varies by developer
Mortgage Registration Fee	0.25% of loan amount	Only if using mortgage financing
Administrative Fees	AED 500 - 1,000	Various processing costs
Annual Property Tax	0%	No ongoing property taxes
Capital Gains Tax	0%	No tax on property sale profits

Can foreigners buy property in cash, and is that common practice?

Cash purchases are fully permitted and relatively common among foreign property investors in the UAE.

Many international buyers prefer cash transactions because they offer faster completion times, stronger negotiation leverage, and eliminate mortgage-related delays and costs. Cash buyers can often complete purchases in 2-3 weeks compared to 4-6 weeks for financed purchases.

The UAE's banking system efficiently handles large cash transactions through manager's cheques and international wire transfers. Anti-money laundering regulations require documentation of fund sources for large transactions, but this process is straightforward for legitimate buyers.

Cash purchases eliminate the 0.25% mortgage registration fee and various financing-related costs, though buyers miss potential tax benefits and leverage opportunities that mortgages provide in other markets.

Approximately 60% of foreign property purchases in Dubai are cash transactions as of September 2025, reflecting the market's appeal to high-net-worth international investors.

Is mortgage financing available to foreigners, what are the typical rates and conditions, and what tips can help secure one?

Mortgage financing is readily available to foreign buyers through local and international banks operating in the UAE.

Typical mortgage conditions include 20-25% down payment requirements, loan terms up to 25 years, and interest rates ranging from 3-5% depending on the bank, applicant's credit profile, and residency status. UAE residents generally receive better rates than non-residents.

Maximum loan amounts typically reach 80% of property value for residents and 75% for non-residents. Monthly income requirements usually mandate that mortgage payments don't exceed 50% of gross monthly income.

**Key Tips for Securing UAE Mortgage Financing:**1. Obtain mortgage pre-approval before property hunting2. Provide comprehensive income and asset documentation3. Maintain strong credit history in your home country4. Consider working with mortgage brokers familiar with foreign applications5. Shop around between local banks (Emirates NBD, ADCB) and international banks (HSBC, Citibank)

Remote mortgage applications are accepted by most lenders, with video calls replacing in-person meetings. Processing typically takes 2-3 weeks with complete documentation.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UAE versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

How reliable are real estate agents in the UAE and what precautions should you take when choosing one?

The UAE maintains a well-regulated real estate agency sector with generally reliable agents, though buyers should take standard precautions.

All legitimate real estate agents must be licensed with the Real Estate Regulatory Agency (RERA) in Dubai or equivalent authorities in other emirates. This licensing ensures basic professional standards and provides recourse for disputes.

Most agents are professional and knowledgeable, particularly those working with established agencies in prime areas. However, the market's rapid growth has attracted some less experienced operators.

**Essential precautions when choosing an agent:**1. Verify the agent's RERA license number2. Check online reviews and ask for client references3. Ensure all agreements are documented in writing4. Never pay fees outside agreed escrow accounts5. Work with agents from established agencies with physical offices

Reputable international agencies like Coldwell Banker, Engel & Völkers, and leading local firms like Allsopp & Allsopp maintain high professional standards. Commission rates are typically negotiable, ranging from 1-3% depending on property value and services provided.

How long does the whole property buying process usually take from start to finish?

The complete UAE property buying process typically takes 2-4 weeks from initial property selection to final title deed receipt.

This timeline is significantly faster than most Western countries, where property transactions often require 6-12 weeks. The UAE's digital infrastructure and streamlined government processes enable rapid completion.

Cash purchases generally complete in 2-3 weeks, while mortgage-financed purchases may extend to 3-4 weeks due to additional bank processing requirements. Off-plan properties follow different timelines based on construction progress and developer schedules.

Factors that can expedite the process include having all documentation ready, pre-approved financing, using experienced local agents, and working with established developers. Remote purchases don't significantly extend timelines when proper Power of Attorney arrangements are in place.

Emergency purchases can sometimes be completed in 10-14 days, though this requires exceptional circumstances and premium service fees from various parties involved.

What are the most common mistakes or pitfalls foreigners make when investing in UAE property, and how can they be avoided?

Foreign property investors in the UAE commonly make several preventable mistakes that can cost significant money and time.

**Most Common Mistakes:**1. **Not verifying developer reputation**: Some investors choose properties from unknown developers offering unrealistic deals2. **Overlooking leasehold vs. freehold status**: Confusion about ownership rights can lead to unexpected restrictions3. **Underestimating total costs**: Many budget only for purchase price without considering 6-8% in additional fees4. **Using unlicensed agents**: Working with non-RERA licensed agents offers no legal protection5. **Insufficient property inspection**: Failing to properly inspect completed properties or verify off-plan project progress6. **Ignoring maintenance obligations**: Not understanding service charges and community fees7. **Poor location research**: Choosing properties in areas with limited growth potential or poor connectivity**Prevention strategies include:**- Only work with RERA-licensed agents and established developers- Verify all legal documentation and ownership status- Budget an additional 7-8% above purchase price for fees- Conduct thorough due diligence on developers' track records- Physically inspect properties or hire qualified inspectors

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

Does buying property in the UAE provide a pathway to residency or even citizenship, and what are the conditions?

UAE property ownership provides clear pathways to residency but not to citizenship.

Property investors can qualify for renewable investor visas based on their investment amount. Purchases worth AED 750,000 or more qualify for a 2-year renewable investor visa, while investments of AED 2 million or more grant eligibility for the prestigious 10-year Golden Visa.

The Golden Visa program offers significant benefits including multiple-entry privileges, ability to sponsor family members, and the option to stay outside the UAE for extended periods without visa cancellation. This makes it particularly attractive for international investors seeking flexible residency options.

UAE citizenship remains extremely rare and is typically reserved for exceptional cases involving significant economic contribution, specialized expertise, or long-term cultural integration. Property ownership alone does not qualify for citizenship consideration.

Residency through property investment doesn't require physical residence but does provide the option to live, work, and access services in the UAE. Visa holders can also sponsor immediate family members under certain conditions.

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.

Sources

1. MHG Wealth - Investing in Dubai vs UK Real Estate
2. DXB Off Plan - Comparing Property Purchases in Dubai and Canada
3. Housebook Deals - UAE Property News
4. D&B Dubai - Foreign Ownership Restrictions UAE
5. Global Property Guide - UAE Buying Guide
6. Sands of Wealth - UAE Real Estate for Foreigners
7. QBD - Legal Requirements for UAE Property Purchase
8. Bayut - Property Ownership Rules for Foreigners