Guide for First-Time Property Buyers in Dubai 2024

According to a report by CBRE, an American real estate investment firm, by November 2023, the total volume of property transactions in Dubai over the closing year peaked at 112,356. This stands for the highest milestone on record. With the average annual rent for an apartment in Dubai equaling AED 112K and flexible payment plans offered by local developers, buying property in Dubai in 2024 is as smart an investment as ever.

First-time property buyers in Dubai have to consider a lot before launching the endeavor, especially if it’s their first time buying realty in UAE. Understanding the local off-plan property market, Sales and Purchase Agreement (SPA) clauses, and mortgage conditions is crucial, and in this thorough guide, we’ll lead you through all the process stages—up to the post-purchase management of utilities.

Overview of the Property Market in Dubai in 2024

Dubai’s realty market is shaped by 4 factors:

an increasing inflow of tourists (15.4 million as of November 2023) influencing rent costs and, consequently, ready-to-move property on sale,
off-plan (under development) realty variety and price range,
tourism-defined prices for the property depending on the city area,
Dubai’s economic growth and urban & hospitality development plans driving its popularity as a destination for expats and investors.

Dubai’s property market is booming with both commercial and residential offers. The latter feature apartments, villas, townhouses, and land. In the Dubai market review by the leading global audit and advisory services company Deloitte, it is predicted that 2024 villa prices will continue to outpace apartments.

Setting the Budget and Choosing the Neighborhood

When setting your budget for purchasing property in Dubai, consider its desired type, living area, neighborhood, and available amenities. The city’s rich offers range from tiny studios to penthouses, 1-bedroom townhouses to you-name-the-number-bedroom villas. The prices vary depending on the location, developer, the project itself, and whether it’s an off-plant unit or a ready one.

Compare: $45,300 for a 463 sq. ft. studio in Trillionaire Residences in Business Bay and $3,791,592 for a 3,562 sq. ft. 3-bedroom second-housing apartment in the Opus Residences in the same neighborhood.

As the location is a determining cost factor in Dubai, these average prices per sq. ft. depending on the city’s district may help you identify your niche:

Palm Jumeirah, Downtown: AED 2,400
Arabian Ranches, Dubai Marina, Business Bay, MBR City: AED 1,500 to AED 1,900
Palm Jumeirah: AED 2,300 for apartments, AED 4,700 for villas
Dubai Sports City, International City, Al Furjan, Discovery Gardens: AED 560 to AED 1,000

All Dubai neighborhoods have their unique personality and appeal. Identify your priorities and study the map by the Department of Economy and Tourism. You can redecorate the interiors, pay for extra household services, or rent the property out, but you can never change its location!

Speaking about amenities, it should be noted community pools, gyms, and kid’s playgrounds are a default option in Dubai’s residential buildings, so feel free to dream big! Logically enough, premium development projects offer a wider choice of amenities, which takes its toll on the price of the residential units.

Please note the additional costs and fees associated with buying property in Dubai: there are obligatory government and service fees.

The Dubai Land Department (DLD) title registration fee is 4% of the property price, which is usually divided between the seller and the buyer.
The admin fee is AED 580 for second-hand apartments, AED 40 for off-plan, and AED 430 for land.
AED 1,040 oqood is a fee for off-plan real estate management.
Service fees are paid upon rights transfer and vary among projects.

Insurance, by the way, is optional.

Finding the Right Property in Dubai

Once you’ve identified the neighborhoods you’d like to move/invest in, follow the step-by-step guidance:

Scan through the available facilities like metro stations, hospitals, schools, parks, beaches, and restaurants. If there is something on the list that is your top priority, Google-map and save it. If a facility, like a beach, a landmark, an airport, or an office building, is located out of your selected districts, bookmark it still because it’ll help you later to calculate the driving distance and compare different property options.
Compare the actual prices for off-plan and ready properties located in the same area. Thus you’ll ensure you dream within the budget. Second-hand housing is more expensive in Dubai, while off-plan units come with affordable payment plans that can be managed by anyone.
Study the available offers by applying search filters with your preferences. Most developer and property aggregator websites have a section where you can use both filters and a map. Subscribing to a developer’s newsletter so as not to miss new project launches is a good idea too.
Assess the surroundings: see the buildings in person, use Google Street View, or ask a local friend, a developer’s representative, or a realty agent to send you footage or photos. This way you’ll see how far the properties are from busy roads, how green adjacent grounds are, and what development stage they are at.
Schedule a viewing appointment for the ready-to-move property or examine the developer’s reviews on the internet to check its reputation and if it has any lawsuits, associated scandals, or new projects coming soon—it’s a good sign they’re active.
For off-plan properties: check the payment plan and how suitable it is to your financial abilities: some developers ask for a 20% payment upfront, 40% during construction, and the rest upon completion; others offer even more attractive schemes.

If all is well, paying the deposit is your next step to start the purchase procedure.

Financing Options for Purchasing Realty in Dubai

First-time property buyers may find the financial intricacies of the purchase complicated at first sight, but Dubai isn’t that hard at cracking in deal-making. We reveal a few things to mind below, but if online guidance seems insufficient, don’t hesitate to contact experts to lead you through.

Mortgage options for Dubai property are available to UAE nationals, residents, and non-residents. First-time property buyers have to start with a 20% down payment.

As the law states, the mortgagee shall be a bank or a financing company or institution registered with the Central Bank of the UAE as a property-financing practitioner in Dubai. Another important point: you won’t be able to sell the mortgaged unit without the approval of the bank or the financing company.

Different banks have their eligibility criteria for mortgage applicants and property. The most common are these two: (1) a proven steady income equal to or surpassing the minimal threshold and (2) proof of funds in the form of a bank statement.

FAB Bank, Mashreqbank, HSBC, and others offer dedicated home loan services for foreign buyers and non-UAE nationals.

Legal Aspects of Buying Property in Dubai

After you have paid the deposit, you may either approach a bank to apply for a loan or start the contract negotiation with the developer or the seller. The Sales and Purchase Agreement (SPA) is the pathway for off-plan units, whereas second-hand property requires signing the Memorandum of Understanding (MoU) and obtaining a No Objection Certificate (NOC).

Dubai Land Department (DLD) and Real Estate Regulatory Agency (RERA) are two regulatory bodies that oversee Dubai’s real estate sector. You’ll definitely see or read these names a couple of times throughout the buying process.

Closing the Deal and Post-Purchase Considerations

Once the SPA is signed, you have to submit all required documents to the DLD office. It’s there that you’ll have to pay the DLD title registration fee. Then it’ll generally take about a month for DLD to process the property-owner change and finalize the transaction. When the audition is over and the transaction is approved, you’ll receive a link for the title deed and the map in your e-mail.

If you’ve bought a second-hand property, you have to notify utility providers that you’re its new owner. To register and activate electricity and water services, you’ll have to contact Dubai Electricity & Water Authority (DEWA), for internet, chiller (air-conditioning), and telephone, you’ll have to reach out to either a company of your preference or the one that has already provided services to the unit.

Maintaining and managing the property seems a menial task for you? Well, there are service companies in Dubai waiting to do just that for you. They can assist you with account management, usage monitoring, payments, or any disputes with the utility providers.

If you’ve invested in off-plan property, a good tip would be to add installment deadlines in your calendar so as not to miss them and avoid potential penalties. Also, plan your budget for the upcoming few years so that, should anything unexpected occur, you still have the means to pay the next installment. A contingency plan is best left on paper, but if something really happens, you’ll be glad you’ve prudently and sober-mindedly devised at least some roadmap for maneuvering.

Take Action to Make It Come True

Because unless you do, nothing will ever change. If your dream is to become an owner of an apartment or a villa in Dubai, the fact that you haven’t bought anything in the UAE before doesn’t make you less capable or deprive you of any opportunities.

So, buying property in Dubai in 2024 doesn’t look as hard as it might have been, right? If you still bother about the legal or financial sides of the matter or are afraid of misdefining the neighborhood or property to invest in, make sure you contact Dubai real estate experts.

Buying property in Dubai for the first time is just one enjoyable experience if you entrust the task to professionals. Contact our agents today to seal the deal as smoothly and fast as none of your dreams ever dared to picture!