Logo
Logo

Buyer's Guide

  • Home
  • /
  • Buyer's Guide

EVERYTHING YOU NEED TO KNOW BEFORE BUYING A HOME IN DUBAI

Buying a home in Dubai is an exciting prospect, whether you're looking to settle in one of the world’s most dynamic cities, invest in its thriving real estate market, or secure a luxurious holiday home. However, navigating the real estate landscape here is not without its complexities. From understanding freehold vs leasehold zones to evaluating legal requirements and hidden costs, there’s a lot to consider before making a purchase. 


This guide will walk you through everything you need to know before buying a home in Dubai — helping you make informed, confident decisions in one of the Middle East's most exciting property markets.

WHY BUY IN DUBAI?

Dubai has become one of the world’s most sought-after destinations for property investment, offering an unmatched combination of lifestyle, opportunity, and long-term security. Whether you are an investor looking for strong returns or a homeowner seeking a dynamic city to call home, Dubai stands out for several reasons:


  • Tax-Free Environment: Enjoy zero property tax and no capital gains tax, ensuring you keep more of your returns and maximize your investment potential.
  • High Rental Yields: Dubai consistently ranks among the top cities globally for rental returns, with yields often outperforming those in major international markets such as London, New York, and Hong Kong.
  • World-Class Lifestyle: From luxury beachfront living to vibrant urban hubs, Dubai offers an unmatched quality of life with world-class shopping, dining, healthcare, and education at your doorstep.
  • Safe & Secure: Recognized as one of the safest cities in the world, Dubai provides peace of mind for families, professionals, and investors alike.
  • Strategic Location: Situated at the crossroads of East and West, Dubai is a global hub connecting Europe, Asia, and Africa—perfect for business, travel, and global living.
  • Strong Government Vision: Backed by visionary leadership, Dubai’s economy continues to thrive, with major projects, infrastructure, and innovation driving growth across every sector.
  • Investor-Friendly Regulations: With clear property ownership laws for both residents and foreigners, along with long-term residency visas linked to property investment, Dubai is a secure and transparent market to buy in.


STEP-BY-STEP BUYING PROCESS

  1. 1

    Decide Your Budget & Financing


    • Cash Buyers: A smoother, faster process with fewer approval steps.
    • Mortgage Buyers: Pre-approval from a UAE bank is highly recommended before making offers. UAE expats can typically borrow up to 80% of the property value for first homes.


  2. 2

    Choose the Right Property

    At Newstead, we’ll help you shortlist properties that align with your needs — whether for family living, lifestyle, or investment. Together, we’ll consider:


    • Community 
    • Sub-community preferences
    • View
    • Plot size and layout
    • Off-plan vs ready-to-move-in


  3. 3

    Make an Offer

    Once you've found the right home, we negotiate the best terms on your behalf. As your trusted agents, we ensure:


    • Market-aligned pricing
    • Clean ownership and title deed
    • Fair contract terms


  4. 4

    Sign Contracts & Pay Deposit

    Once the offer and terms have been agreed, the next steps are:


    • Form B: You’ll digitally approve a Form B, which outlines the agreement between you (the buyer) and the broker. This is part of the documentation required for the official sales contract (Form F).
    • 10% Security Deposit: This is held in escrow with the broker and secured until the day of transfer.
    • Form F: The Memorandum of Understanding (Form F) is sent electronically to both parties via the Dubai Land Department system for review and approval.


  5. 5

    Final Transfer at the Dubai Land Department

    On the day of transfer, both the buyer and seller, or their appointed POAs, will meet at the trustee office for the official transfer of ownership.


    • Pay the remaining balance and fees
    • The property title will be transferred into your name(s)
    • Celebrate purchasing a new home/investment


COSTS TO CONSIDER

Fee Type Typical Cost
DLD Fee 4% of the purchase price
DLD Admin Fee AED 580
Agency Fee 2% of sales price + VAT
Mortgage Registration Fee (if any) 0.25% of loan amount + AED 290
Property Valuation (if mortgaged) AED 2,500 – AED 3,500
Conveyancing Fee AED 5,000 – AED 6,000