FAQs by First-Time Home Buyers in Dubai
Buying your first home in Dubai is an exciting yet overwhelming process. All the legalities, regulations, types of ownership and financing options can confuse first-time home buyers. That said, it is necessary to understand the basics of Dubai’s real estate market to avoid the hassle.
For your convenience, here we have answered some of the most common queries by first-time home buyers in Dubai that can help you with the process.
Queries by First-time Home Buyers Dubai
The property buying process in Dubai is multi-layered and involves different rules and regulations that need to be catered to. Therefore, when buying property, especially for the first time, a number of queries arise.
The following are the answers to all the queries of first-time home buyers in Dubai.
Can Expatriates Purchase Property in Dubai?
Yes, expatriates are allowed to purchase property in the designated freehold property areas of Dubai. The expats are permitted to rent, sell and buy properties after the Freehold Decree implemented by the Dubai Government in 2002.

What Types of Property Ownership are Available in Dubai?
Freehold and leasehold are the two most common types of property ownership in Dubai. Besides, lease to own, jointly owned and usufruct ownerships are also available.
Here are all the types of property ownerships in Dubai explained.
- Freehold: The freehold ownership provides complete rights of a property (Land and Structure) to the owner. The property can be sold, leased or passed on as inheritance.
- Leasehold: Provides limited ownership for a specific period, a maximum of 99 years. Leasehold properties can’t be sold or inherited.
- Lease to Own: This allows tenants to rent a property and own it later, once the total amount is paid off.
- Jointly Owned: In jointly owned property ownership, multiple individuals share ownership rights over a property. The share of ownership can be equal or divided based on investment contributions.
- Usufruct: Buyers have the right to use and benefit from a property for a specific period without owning the land or structure.
Can I Own 100% of a Property in Dubai as a Foreign Buyer?
Yes, expats can have complete ownership of the property if purchased in one of the freehold areas.
What are Freehold Areas in Dubai?
Freehold areas are the designated zones where expats and foreign investors can buy properties with complete ownership. The freehold areas of Dubai include Arabian Ranches, Downtown Dubai, Business Bay, JBR and others.
Which Authorities Regulate the Real Estate Sector in Dubai?
Dubai’s real estate sector is governed by different authorities ensuring complete transparency and legal compliance in the property transaction process. The three main real estate regulatory authorities of Dubai include:
How Much Money Do I Need to Buy a Home in Dubai?
The minimum salary to buy a property in Dubai is around AED 15k. Whereas the mortgage spending is set at 25% of the monthly income. Along with this, 20 to 25% down payment and other hidden costs are also included.

What Is the Minimum Down Payment Required for Purchasing a Property in Dubai?
The minimum downpayment varies from property to property, it is generally 20% for the residents and 25% for the expats. For instance, if the house costs AED 1M, expats will pay AED 250k as a down payment, whereas Emiratis will pay AED 200k.
What are the Additional Costs Involved in Buying a Property in Dubai?
The additional cost of buying a property in Dubai includes the following.
- DLD Fees: 4% of the total property value
- Property Registration Fees: For properties valued under AED 500,000, the charges are AED 2000 and 5% VAT
- Property Registration Fees: For properties valued above AED 500,000, the charges are AED 4000 and 5% VAT
- For Mortgaged Properties: 0.25% of the total loan amount and an AED 290 admin fee will be charged
Do I Need to Hire a Real Estate Agent When Buying a Home in Dubai?
Buyers are not legally obligated to hire a real estate agent to buy properties in Dubai. However, there are multiple benefits of hiring a real estate agent, which makes it an ideal option.
What Documents Are Required to Purchase a Property in Dubai?
The documents required to purchase a property in Dubai are as follows.
- Seller and buyers’ Emirates ID
- The manager’s cheque equals the property price
- Real Estate NOC
- Signed SPA
Please remember that the list of required documents can vary, and it is recommended to consult with the authorities prior to initiating the property buying process.
Can I Apply for a Mortgage to Buy a Home in Dubai?
To secure a home loan in Dubai, first-time buyers must meet the following conditions.
- Must be a UAE resident or national
- Should be older than 21 years and younger than 65 years
- The minimum monthly income for salaried individuals is AED 15k, and for business owners, it is AED 25k.
These were the answers to all the queries by first-time home buyers in Dubai. The process of buying a property is lengthy, and finding an ideal unit can take time. However, to cut to the chase, you can browse through these properties for sale in Dubai and choose from an array of options.
Stay tuned to dubizzle’s property blog for more information on the property buying process.