How to Buy an Apartment in Dubai: A Step-by-Step Guide

The Law For Buying Property In Dubai

There are specific laws for people looking to buy an apartment in Dubai. Whilst you don’t need to be an expert, it's a good idea to understand the laws and regulations that oversee the property market. 

One of Dubai's most crucial property laws for expats is Article (4) of Law No. 7 of 2006. 

Article (4) of Law No. 7 of 2006

This article is the primary reference and regulation for property ownership in Dubai. It outlines that the UAE (United Arab Emirates) and GCC (Gulf Cooperation Council) residents can own property anywhere in Dubai. 

On the other hand, foreigners are allowed to buy properties in designated freehold or leasehold areas. 

Types Of Property Ownership In Dubai 

When buying an apartment in Dubai, there are two types of ownership: freehold and leasehold. Understanding the difference is crucial for making an informed decision. 

Freehold Ownership 

Freehold property ownership gives the buyer complete ownership of their property and the land it sits on - with no time restrictions. 

The Dubai Land Department (DLD) will register the freehold buyer’s name as the “landowner” in the government registry while granting them a title deed for their property. This deed and any contract with it are applicable in perpetuity; if the owner passes away, their heir will inherit the property. 

Dubai has designated freehold areas where expats and foreign nationals can buy ready and off-plan properties.

Some important points about freehold properties are:

• The owner can sell, lease, or occupy the property.

• According to the developer's guidelines, the owner can renovate their property as they see fit.

• If they fulfil certain conditions, the property owner and their family will be eligible for renewable UAE residence visas (up to 10 years).

• The owner will be responsible for the property’s maintenance and significant repairs.

Leasehold Ownership 

Leasehold property ownership gives the buyer the right to occupy a property for a fixed period—usually 99 years. It allows the buyer rights to the property, not the land it is built on.

Upon the lease’s expiration, the property ownership is transferred back to the freehold owner. Some important points about leasehold properties are:

• The leaseholder can renew the contract at the end of the term

• The leaseholder will have limited liability for major repairs

• Leasehold properties are generally more affordable than freehold properties. 

• Any changes to the property structure (e.g. renovation) will require the freeholder’s approval.

• Leaseholders may face certain restrictions, such as subletting or having pets. 

Legal Steps To Buying A Property In Dubai 

Before we cover exactly how to buy an apartment in Dubai, understanding these legal steps will help ensure a smooth and hassle-free buying process.

1. Formulating A Contract Between The Buyer And The Seller

The contract is an essential document for buyers and sellers. Once you have chosen an apartment, you must negotiate crucial terms and conditions with the seller, such as pricing and the payment method. 

Whilst this step does not legally require a real estate agent or conveyancer, it is highly recommended, as they can give detailed guidance on how to buy a flat in Dubai and negotiate on your behalf. 

2. Signing The Agreement Of Sale

Once both parties have mutually agreed upon the contract terms, the next step is signing the Real Estate Sale Agreement. This form (Form F/MOU) can be accessed from the Dubai Land Department’s (DLD) official website and customised to include the agreed-upon terms. 

The contract must be signed in the presence of the seller and a witness. The buyer must pay a 10% security deposit, which is refundable upon the transaction's completion.

3. Applying For A No Objection Certification (NOC)

The buyer must obtain an NOC from the developer before buying an apartment in Dubai. This confirms that there are no outstanding bills on the property, and the developer has no objections to the sale. 

4. Validating The Ownership Transfer With DLD

The transfer of ownership will be completed at an Approved Property Registration Trustee’s Office of the DLD. The buyer and seller must be present or they can send an authorised representative. 

The buyer must submit the required documents at the office, like the NOC and signed Form F, and pay for the property, usually using a Manager’s Cheque. They will also need to pay DLD fees to complete the process. 

Once the documents and payment have been verified, the transfer will be processed, and a new title deed will be issued in the buyer’s name as the new owner. 

A Step-By-Step Guide On How To Buy An Apartment In Dubai

The process of how to buy an apartment in Dubai​ can be broken down into 9 key steps: 

1. Set a Budget

2. Get Pre-Approved

3. Partner with a Real Estate Agent

4. View Properties 

5. Make an Offer

6. Sign the Form F

7. Sales Progression Process 

8. Apply for NOC

9. Property Transfer

Lets consider each of the steps in a little more detail.

1. Set a Budget

Setting a budget is a crucial first step to buy a flat in Dubai. You should consider not just the property’s purchase price, but also the additional costs of buying a property in Dubai, and ongoing costs like maintenance and service charges.

If you plan to buy using a mortgage, you will need to save a deposit, which will be at least 20-25% of the purchase price. 

2. Get Pre-Approved

If you will be financing the apartment  purchase with a mortgage, rather than in cash, you should get pre-approval from a bank prior to starting your search. Pre-approval is where a bank considers your circumstances and gives an initial indication of how much they could be willing to lend you. 

When considering how to buy apartment in Dubai​, this is a step that can get it overlooked. But, getting pre-approved confirms that your budget is realistic and it makes you appear more serious in the eyes of sellers. You do not want to find your perfect flat, only to discover its not possible to get pre-approved for the right amount of money. 

The bank will issue a pre-approval letter/email which will be valid for 60 days, giving you time to start your property search. 

3. Partner with a Real Estate Agent

With thousands of real estate agencies in Dubai, finding the right agent can be crucial when buying an apartment in Dubai. Its a great idea to enquire with established real estate agencies, like Engel & Völkers, to find an agent that specializes in your area of interest. 

Your real estate agent should take the time to understand your criteria, preferences and budget, allowing them to provide you with tailored advice and shortlist properties that meet your requirements. 

4. Do Viewings

With your budget and criteria in mind, your real estate agent should begin to help you find suitable properties. Arrange with your agent to go and view as many of these properties as you can. 

Visiting properties in person will give you the best opportunity to evaluate their location, condition, suitability and ultimately whether it feels like the right property for you. 

5. Make an Offer

Once you find an apartment that you would like to move forwards with, you can submit an offer through your agent. Your agent will negotiate on your behalf to secure you the best price with the seller. 

6. Sign the Form F

One of the most crucial steps of how to buy an apartment in Dubai​ is the signing of the Form F. This is a legally binding contract between the buyer and seller which outlines all of the terms of the sale, such as the selling price and payment method. Without this, the property sale cannot proceed. 

At this time, the buyer will also be required to pay a 10% deposit to secure the apartment, which will be refunded once the property is transferred. 

7. Sales Progression Process

The real estate agency that you are working with should assign you a Sales Progression Officer. This person will oversee the sales progression process, such as completing due diligence, finalizing the financing and preparing the required documents for the transaction. 

8. Apply for NOC

Another necessary step for buying an apartment is to apply for an NOC from the property’s developer. This confirms that there are no outstanding service charges or bills on the property, and the developer has no objections to the ownership transfer. 

9. Property Transfer

Finally, both the buyer and seller (or their legal representatives) and the real estate agent should attend an Approved Property Registration Trustees office of the DLD to finalize the property transfer. This will involve the submission of documents, payment of fees and the issuance of a new title deed to the buyer. 

Common Mistakes To Avoid When Buying An Apartment In Dubai 

When purchasing an apartment in Dubai, it's important to be aware of potential pitfalls that can lead to unnecessary complications or costs. Here are some common mistakes to avoid.

Top Areas To Buy An Apartment In Dubai

Wondering where to buy an apartment in Dubai? With so many residential areas to choose from, it can be a difficult decision. One that requires thorough research and consultation with an experienced real estate agent.  

However, beginning your search with some of Dubai’s most popular apartment communities can be a great place to start. Here’s some neighbourhoods to consider: 

• Dubai Marina

• Palm Jumeirah

• Jumeirah Lake Towers

• Jumeirah Village Circle

• Dubai Hills Estate

• Downtown Dubai

• Business Bay

Benefits Of Buying An Apartment in Dubai

Dubai offers a wealth of advantages for property buyers, making it one of the most attractive destinations for real estate investment. Whether you're a resident or an international investor, here are some key benefits of buying an apartment in Dubai. 

Conclusion

Understanding how to buy apartment in Dubai is essential for anyone looking to take advantage of the city’s thriving property market. With rising rental prices and the benefits of investing in a tax-free environment, buying an apartment can be a smart move for both residents and international investors.

Whether you’re exploring how to buy flat in Dubai as a first-time buyer or looking to expand your investment portfolio, the process can be straightforward when you have the right guidance. From understanding the laws and types of ownership to navigating the steps of property transfer, being informed ensures a smooth and stress-free experience.

Dubai’s unparalleled lifestyle, excellent rental yields, and long-term growth potential make it a top destination for property ownership. If you're ready to buy an apartment in Dubai, partnering with a trusted real estate expert like Engel & Völkers ensures you receive personalized advice and access to the city’s most exclusive listings.

Start your journey today and discover why buying an apartment in Dubai could be one of the best decisions you make.