Novice Investor's Guide

Investing in Dubai Real Estate: First Steps

1️. Define Investment Goal

This could be:

• Rental Yields
• Resale Upon Project Completion
• Flipping
• Capital Preservation in m²

2️. Evaluate Budget

The entry threshold for Dubai's market is $150,000. This is a price for a studio 20 mins from the sea. More comfortable to choose with a budget from $300,000.

Consider additional expenses:

• DLD Registration Fee: 4%  
• Service Charge: from $8.8–$88 per m² per Year  

3️.Choose Property Type

– Ready or Off-plan

This choice depends on your strategy. Ready properties are perfect for rentals. Off-plan units are good for resale.

– Residential or Commercial  

Residential real estate in Dubai is tax-free. The supply of commercial properties is limited, while demand for offices and shops is growing rapidly.

– Apartment or Villa  

Although apartments are more common for investing, villas in Dubai also offer potential for rental and resale. In September 2024, annual price growth for villas on Palm Jumeirah exceeded 42%.

4️. Decide Between Primary and Secondary Market

A purchase from a developer offers interest-free installments with a down payment of 10%–20%. Sometimes it's 2–3 years post-handover, with a current maximum of 8 years. Agency fee – 0%.

For purchases from a private seller, be ready to pay the full amount upfront. Agency fee – 2%.

5️. Explore Financing Options

Both UAE residents and non-residents can secure mortgages with Dubai banks. For non-residents, the process is more complex, and the down payment is from 40%. You can combine payment plans with a mortgage.

6️. Choose Location

• Flagship areas in the centre and by the sea: Dubai Marina, Downtown Dubai, Palm Jumeirah.
• Developed family areas 15 mins from the centre: Dubai Hills Estate, JVC, Dubai Creek Harbour.
• Emerging areas with growth potential: Town Square, DAMAC Lagoons, Azizi Riviera.

7️. Research Developers

Choose reputable companies. Some of Dubai's largest developers include Azizi, Danube, DAMAC, Emaar, Sobha.

8️. Decide Against Getting Resident Visa

A 2-year visa is available with a property purchase from $204,000, while a 10-year visa requires $545,000. You can sponsor family members and renew the visa as long as you own the property. However, if you decide to sell, the visa will be cancelled.