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
Foreigners can buy property in designated freehold zones across the UAE, making it one of the most accessible markets in the Middle East.
The UAE real estate market offers a unique combination of tax-free ownership, world-class infrastructure, and potential for both capital appreciation and rental yields. Whether you're looking at the glittering towers of Dubai Marina, the cultural heart of Abu Dhabi, or the affordable options in Northern Emirates, understanding the legal framework and practical steps is crucial for a successful investment.
If you want to go deeper, you can check our pack of documents related to the real estate market in the United Arab Emirates, based on reliable facts and data, not opinions or rumors.
As of June 2025, foreigners can freely purchase property in designated freehold zones across all seven emirates, with Dubai and Abu Dhabi leading in transaction volumes.
The process is straightforward with no property taxes, potential residency visas for investments above AED 750,000, and the ability to complete transactions entirely remotely through digital platforms.
| Aspect | Key Information | Important Details |
|---|---|---|
| Foreign Ownership | Allowed in freehold zones | Full ownership rights including land in designated areas |
| Visa Benefits | 2-year visa: AED 750,000+ | 10-year Golden Visa: AED 2 million+ |
| Transaction Costs | 4% DLD fee + 2% agent fee | No property tax or capital gains tax |
| Mortgage Options | Up to 75% LTV for expats | Interest rates: 3.5-5.5% (June 2025) |
| Remote Purchase | Fully possible | Digital systems and Power of Attorney available |
| Best ROI Areas 2025 | JVC: 6.78-7.87% yield | Downtown Dubai: 4.11-7.92% yield |
| Price Range | JVC: $328,000 for 1-bed | Downtown Dubai: $1 million+ average |
Can foreigners buy property in the UAE and what's the difference between freehold and leasehold zones?
Yes, foreigners can absolutely buy property in the UAE, but only in government-designated freehold zones.
In freehold zones, you get complete ownership of both the property and the land it sits on, with the right to sell, lease, or pass it on to heirs. Popular freehold areas include Dubai Marina, Palm Jumeirah, Downtown Dubai, Business Bay, Jumeirah Village Circle (JVC), and in Abu Dhabi - Yas Island, Al Reem Island, and Saadiyat Island.
Leasehold properties, on the other hand, give you the right to use the property for a specific period (typically 10 to 99 years) but the land ownership remains with the original freeholder. After the lease expires, the property reverts to the landowner unless you negotiate a renewal.
Each emirate has its own regulations - Dubai has the most extensive freehold zones, followed by Abu Dhabi, while Sharjah, Ajman, and Ras Al Khaimah have more limited but growing options. As we reach mid-2025, new freehold zones are being announced regularly, particularly in emerging areas of Sharjah and Ras Al Khaimah.
It's something we develop in our United Arab Emirates property pack.
What visa or residency do I need to buy property in the UAE?
You don't need any visa or residency to purchase property in the UAE - foreigners can buy as tourists or non-residents.
However, property ownership can qualify you for residency visas. If you invest AED 750,000 or more in property, you're eligible for a 2-year renewable property investor visa. For investments of AED 2 million or above (which can be a single property or multiple properties combined), you qualify for the prestigious 10-year Golden Visa.
The visa application requires your property to be fully constructed and habitable - vacant land doesn't qualify. You'll also need to show proof of income (typically AED 10,000 per month minimum), have valid medical insurance, and provide a police clearance certificate from your home country.
The Golden Visa offers significant advantages including the ability to sponsor family members, no restrictions on business ownership, and extended grace periods if you're outside the UAE. As of June 2025, the UAE government has streamlined the application process, with most visas now processed within 5-10 business days.
Can I buy UAE property completely remotely without visiting?
Yes, you can purchase property in the UAE entirely remotely without ever setting foot in the country.
The UAE has one of the most advanced digital real estate infrastructures globally. You can conduct virtual property viewings, sign contracts electronically, and complete the entire transfer process online. The key tool for remote buyers is a Power of Attorney (POA), which you can execute at any UAE embassy or consulate in your home country.
Dubai Land Department and Abu Dhabi Municipality both offer comprehensive digital services for property registration and transfer. You can submit documents, pay fees, and receive your digital title deed all through online portals. Banks also facilitate remote mortgage applications with video verification processes.
Many developers and real estate agencies now offer dedicated international buyer services, including virtual reality tours, drone footage, and live video walkthroughs. The entire process, from property selection to receiving your title deed, typically takes 2-4 weeks when done remotely.
What's the complete property buying process and required documents?
| Step | Process | Required Documents |
|---|---|---|
| 1. Property Selection | Research and select property through portals or agents | Passport copy |
| 2. Make Offer | Negotiate price and terms with seller | Proof of funds/Bank statements |
| 3. Sign Agreement | Sign MoU/Form F and pay 10% deposit | Signed MoU, Passport copy |
| 4. Obtain NOC | Get No Objection Certificate from developer | Sale agreement, Proof of payment |
| 5. Final Payment | Pay remaining amount via manager's cheque | Manager's cheque, All previous documents |
| 6. Transfer at DLD | Complete transfer at Land Department | Original title deed, NOC, Emirates ID (if resident) |
| 7. Registration | Register property and receive new title deed | All documents, Transfer fee payment receipt |
For off-plan properties, you'll receive an Oqood (interim title deed) initially, which converts to a full title deed upon project completion. If you're applying for a residency visa, you'll additionally need a police clearance certificate from your home country and valid medical insurance for the UAE.
Don't lose money on your property in the UAE
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Do I legally need a lawyer when buying property in the UAE?
No, hiring a lawyer is not legally required when buying property in the UAE, but it's highly recommended for first-time buyers and complex transactions.
The UAE property market is generally transparent with standardized contracts and clear regulations. However, a lawyer can provide crucial services including due diligence on the property title, verification of developer credentials for off-plan properties, review of sale agreements, and ensuring compliance with each emirate's specific regulations.
Legal fees typically range from 1-2% of the property value or a flat fee of AED 5,000-15,000 depending on the complexity. Lawyers are particularly valuable for off-plan purchases, properties with multiple owners, inheritance cases, or when setting up company ownership structures.
Many successful transactions happen without lawyers, especially for straightforward ready property purchases in established developments. However, given the significant investment involved, the cost of legal advice is minimal compared to potential risks of title issues, contract disputes, or developer problems.
Where do foreigners typically buy property in the UAE?
Dubai attracts about 70% of foreign property buyers, with Dubai Marina, Downtown Dubai, and Palm Jumeirah being the most prestigious addresses.
Dubai Marina appeals to those seeking waterfront living with restaurants, beaches, and nightlife at their doorstep. Downtown Dubai offers proximity to business districts and landmarks like Burj Khalifa. Jumeirah Village Circle (JVC) has emerged as the top choice for value-conscious buyers, offering family-friendly communities at more accessible prices.
Abu Dhabi attracts buyers looking for a more relaxed, family-oriented lifestyle with top international schools and cultural attractions. Saadiyat Island features museums and beaches, Al Reem Island offers modern high-rises with water views, while Yas Island provides entertainment with theme parks and the F1 circuit.
The Northern Emirates - Sharjah, Ajman, and Ras Al Khaimah - are gaining popularity among investors seeking higher yields and lower entry prices. Sharjah appeals to those wanting a more traditional lifestyle, while Ras Al Khaimah's Al Hamra Village offers beachfront resort living at fraction of Dubai prices.
It's something we develop in our United Arab Emirates property pack.
Which UAE areas offer the best lifestyle, rental yields, or capital growth in 2025?
As of June 2025, Jumeirah Village Circle (JVC) leads in rental yields with 6.78-7.87% returns, making it the top choice for investment-focused buyers.
Downtown Dubai combines prestige with solid returns of 4.11-7.92%, though entry prices now average over $1 million. Business Bay offers a middle ground with 5.08-6.68% yields and excellent connectivity to Dubai's business districts. Dubai Hills Estate has emerged as the premium family destination with its golf course, schools, and green spaces, offering steady 6-7% yields.
For capital growth, Ras Al Khaimah is the standout performer with 15-20% annual appreciation in areas like Al Hamra Village. The Northern Emirates are experiencing a development boom as buyers seek alternatives to Dubai's high prices. Dubai Marina and JBR maintain stable 6-7% yields with consistent demand from tourists and expats.
Lifestyle buyers gravitate toward Saadiyat Island in Abu Dhabi for its cultural district and beaches, Dubai Hills for family living, and Palm Jumeirah for ultimate luxury. The new developments in Dubai South near the airport are showing promising growth as Expo 2020 infrastructure matures.
What are current property prices across the UAE?
Dubai property prices have increased 25% in transaction value during 2024 and continue rising as we reach mid-2025.
In Jumeirah Village Circle, a one-bedroom apartment averages $328,000 (AED 1.2 million), making it Dubai's most accessible investment zone. Downtown Dubai commands premium prices with average apartments exceeding $1 million (AED 3.7 million), while Business Bay offers a middle ground at around $611,000 (AED 2.2 million) for comparable units.
Abu Dhabi's luxury segment is booming, with branded residences on Saadiyat and Yas Islands starting at AED 7 million ($1.9 million). Mid-market apartments in areas like Al Reem Island range from AED 1-2 million ($270,000-540,000), offering more space than Dubai equivalents.
The Northern Emirates provide exceptional value - Al Hamra Village in Ras Al Khaimah averages AED 1.12 million for apartments with 15-20% annual appreciation. Sharjah and Ajman offer even lower entry points, with quality apartments starting from AED 400,000 ($109,000), attracting both end-users and yield-seeking investors.
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.
Can foreigners get mortgages in the UAE?
Yes, both resident and non-resident foreigners can obtain mortgages from UAE banks, with terms varying by residency status.
Expatriate residents can borrow up to 75% of the property value (80% for UAE nationals), meaning a minimum 25% down payment. Non-residents typically face slightly stricter terms but can still access up to 75% financing from select banks. Interest rates as of June 2025 range from 3.5-5.5%, depending on the bank, your profile, and whether you choose fixed or variable rates.
Banks require proof of income (usually minimum AED 15,000-25,000 monthly), bank statements for 6 months, salary certificate, and a mortgage pre-approval helps streamline the buying process. The mortgage registration fee is 0.25% of the loan amount plus a processing fee of around AED 3,000-5,000.
Best practices include getting pre-approved before property hunting, comparing offers from multiple banks, and factoring in life insurance requirements. Some banks offer special packages for specific nationalities or professions. Non-residents should note that fewer banks serve them, but options include HSBC, Standard Chartered, and Emirates NBD.
What are the total costs when buying and selling UAE property?
The main cost is the Dubai Land Department (DLD) transfer fee of 4% of the property value, split equally between buyer and seller unless negotiated otherwise.
| Cost Type | Amount | Who Pays |
|---|---|---|
| DLD Transfer Fee | 4% of property value | Usually split 50/50 |
| Real Estate Agent Commission | 2% of property price | Buyer and/or Seller |
| Registration/Admin Fees | AED 2,000-4,000 | Buyer |
| Mortgage Registration | 0.25% of loan + AED 290 | Buyer (if financing) |
| NOC from Developer | AED 500-5,000 | Seller |
| Property Valuation | AED 2,000-3,500 | Buyer (if financing) |
| Trustee Office Fee | AED 2,000-4,000 | Both parties |
The UAE has no property tax, stamp duty, or capital gains tax for individuals, making it one of the most tax-efficient property markets globally. Annual costs include service charges ranging from AED 10-30 per square foot depending on amenities and location. When selling, you'll pay agent commission and your share of the transfer fee, but no capital gains tax regardless of profit.
What mistakes do foreigners commonly make when buying UAE property?
The biggest mistake is not verifying that the property is in a designated freehold zone - some areas that seem open to foreigners are actually leasehold only.
Off-plan buyers often fail to research developer track records, leading to delayed or stalled projects. Always check the developer's previous projects, financial stability, and RERA registration. Another costly oversight is underestimating service charges, which can range from AED 10-30 per square foot annually - for a 1,000 sq ft apartment, that's AED 10,000-30,000 yearly.
Many buyers skip the crucial No Objection Certificate (NOC) from the developer, which confirms all service charges and fees are settled. Without it, you can't complete the transfer. Mortgage buyers sometimes don't realize that life insurance is mandatory and adds to monthly costs.
Not using a reputable real estate agent or lawyer leads to contract issues, especially with unclear payment terms or hidden fees. Finally, buying based on promised infrastructure that doesn't yet exist - always buy based on current reality, not future promises, no matter how credible they seem.
It's something we develop in our United Arab Emirates property pack.
What are the tax implications of owning UAE property?
The UAE offers one of the world's most tax-friendly property ownership environments with zero property tax and no capital gains tax for individuals.
There's no personal income tax on rental income, meaning you keep 100% of your rental yields. When you sell, regardless of profit, individuals pay no capital gains tax. The only transaction tax is the 4% transfer fee when buying or selling. VAT at 5% applies only to commercial property sales - residential sales and leases are exempt.
Annual costs are limited to service charges for building maintenance (not a tax) ranging from AED 10-30 per square foot. If you own property through a company, corporate tax rules may apply, but only if the company has other business activities in the UAE or profits exceed AED 375,000.
For inheritance, the UAE allows foreigners to write wills governing their UAE property, ensuring it passes according to their wishes rather than Sharia law. Some emirates charge minimal fees for will registration, but there's no inheritance tax. This tax efficiency makes the UAE particularly attractive for property investment compared to markets with annual property taxes, capital gains taxes, and rental income taxes.
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.
The UAE property market offers unparalleled opportunities for foreign buyers, combining tax-free ownership, world-class infrastructure, and strong rental yields in a politically stable environment.
As we move through 2025, the market continues to mature with new freehold zones opening, digital transaction systems improving, and visa benefits expanding. Whether you're seeking a luxury residence in Dubai Marina, a family home in Abu Dhabi, or an investment property in emerging Northern Emirates, understanding the legal framework and market dynamics is crucial for success.
Sources
- UAE Government Portal - Expatriates Buying Property
- Bayut - Documentation for Buying Properties
- Property Finder - Dubai Buying Procedure
- Dubai Land Department - Investor Visa
- DAMAC - Freehold vs Leasehold Guide
- Engel & Völkers - Dubai Property Buyer's Guide
- Global Property Guide - UAE Taxes and Costs
- Khaleej Times - Dubai Best Investment Areas 2025
- Wise - Complete Guide to Buying Property in Dubai
- GuestReady - Dubai Rental Yields Analysis