Property Purchase Simulator – United Arab Emirates

Q: Can a foreigner buy property in the United Arab Emirates?

Yes, foreigners of any nationality can buy freehold property in designated zones of Dubai and Abu Dhabi. No nationality restrictions apply. You do not need a residence visa to buy, but purchasing a property worth AED 750,000 or more can entitle you to a 2-year residence visa, and AED 2 million or more to the 10-year Golden Visa.

Q: Can the 4% DLD fee be negotiated?

The 4% DLD fee is a government tax that is non-negotiable. However, the split between buyer and seller is negotiable. Traditionally, each party pays 2%, but in a buyer's market, you may negotiate for the seller to cover a larger share. Some developers occasionally offer a DLD fee waiver as a sales incentive for off-plan projects.

Q: What is the difference between fixed and variable rates in the UAE?

Most UAE mortgages are variable rate, indexed to EIBOR (Emirates Interbank Offered Rate) 3-month or 1-year, plus the bank's fixed margin (1 to 2%). Some banks offer fixed rates for an initial period of 1 to 5 years, after which the rate becomes variable. Fixed rates offer predictability, while variable rates can benefit from rate cuts. Note: early repayment penalties are capped at 1% of outstanding balance or AED 10,000.

Q: What is the NOC and why is it required?

The NOC (No Objection Certificate) is a document issued by the property developer confirming they have no objection to the property transfer. The NOC certifies that all service charges are up to date and there are no ongoing disputes on the property. It is mandatory for any property transfer at the DLD. The cost ranges from AED 1,000 to 5,000 depending on the developer. Some developers issue the NOC within 24 hours, others take up to 5 business days.

Q: What are the recurring costs after buying in the UAE?

After purchase, recurring costs include: service charges of AED 10 to 40/sqft/year, DEWA deposit (AED 2,000-4,000 on setup), municipality fee of 5% of annual rent (or estimated rental value), home insurance and potential mortgage repayment. There is no annual property tax or income tax on rental income. Service charges cover maintenance, security, common area AC and amenities.

Q: What is the difference between freehold and leasehold areas in Dubai?

In Dubai, freehold areas allow foreign nationals to purchase property with full ownership rights, including the right to sell, lease, or inherit without restrictions. Popular freehold zones include Dubai Marina, Downtown Dubai, Palm Jumeirah, and JBR. Leasehold areas grant ownership for up to 99 years but restrict outright land ownership. Since 2002, the Dubai government has progressively opened more areas to freehold foreign ownership. It is essential to verify the property's title deed (Oqood) status and ensure it is registered with the Dubai Land Department (DLD) before completing any transaction.

Calculate DLD fees, total acquisition cost and your monthly mortgage payment in Dubai and the UAE, whether the property is resale or off-plan (new build).

Your project resale

Rates 2026

Property priceAED 1,500,000

Down paymentAED 300,000 (20%)

Additional agency feesNo additional fees

Loan duration25 years (300 months)

Interest rate4.5 %

Insurance0.34 %

Total monthly payment

AED 7,628.91

≈ 2k €

incl. AED 370.02 insurance

DLD + transaction fees

AED 105,950.00

≈ 26k €

7.1% of price – Resale

Credit cost

AED 982,724.02

≈ 246k €

interest + insurance

Total cost

AED 2,588,674.02

≈ 647k €

price + fees + mortgage

Acquisition summary

Acquisition cost

Property priceAED 1,500,000.00

DLD + transaction feesAED 105,950.00

Total acquisition costAED 1,605,950.00≈ 401k €

Financing

Down paymentAED 300,000.00

Amount borrowedAED 1,305,950.00

Credit interestAED 871,718.27

Total insuranceAED 111,005.75

All-inclusive total costAED 2,588,674.02≈ 647k €

Key indicators

Fees / Price

7.1%

Down payment / Price

20.0%

Loan / Price

87%

Total surcharge

AED 1,088,674.02

Chart analysis

Breakdown of the total cost of your UAE property project: price, fees and mortgage.

AED 2.6M

total cost

Property price (AED 1.5M)

DLD + transaction fees (AED 106k)

Credit interest (AED 872k)

Insurance (AED 111k)

Detailed transaction fees

Resale

For a resale purchase in the UAE, Property transfer tax paid to DLD – mandatory for all purchases

Item	Rate / Type	Amount
DLD Fee (Dubai Land Department) Property transfer tax paid to DLD – mandatory for all purchases	4%	AED 60,000.00
Agent commission Standard real estate agent commission (RERA-regulated)	2%	AED 30,000.00
NOC (No Objection Certificate) Developer's no-objection certificate – required for transfer	flat fee	AED 5,000.00
Trustee Fee DLD-approved trustee fee: AED 4,000 + VAT (AED 2,000 + VAT below AED 500,000)	flat fee	AED 4,200.00
Mortgage Registration Mortgage registration fee with the DLD	0,25%	AED 3,750.00
Valuation Fee Property valuation by a bank-approved expert	flat fee	AED 3,000.00
Total transaction fees	7.06%	AED 105,950.00

Amortization schedule

Year-by-year repayment breakdown

25 years

Year	Principal repaid	Interest paid	Total paid	Remaining balance
1 Year 1	AED 28,930.84	AED 58,175.89	AED 87,106.73	AED 1,277,019.16
2 Year 2	AED 30,259.92	AED 56,846.81	AED 87,106.73	AED 1,246,759.24
3 Year 3	AED 31,650.05	AED 55,456.68	AED 87,106.73	AED 1,215,109.19
4 Year 4	AED 33,104.05	AED 54,002.68	AED 87,106.73	AED 1,182,005.14
5 Year 5	AED 34,624.85	AED 52,481.88	AED 87,106.73	AED 1,147,380.29

Off-plan vs Resale Comparison

Impact of property type on transaction fees for a price of AED 1.5M.

Resale

AED 105,950.00

7.06% of price

New build (Off-plan)

AED 101,950.00

6.80% of price

Off-plan savings

AED 4,000.00

4% savings

The asking price is not what a purchase in the United Arab Emirates actually costs: on a property of AED 1,500,000.00, acquisition costs come to AED 105,950.00, or 7.1 % of the price. They break down into DLD Fee, Agent commission, NOC. These are paid in cash on top of the deposit and cannot be borrowed, which is the usual surprise for a first-time buyer and often runs into tens of thousands. On the financing side, at a rate of 4.50 %, borrowing over 25 years after a deposit of AED 300,000.00 gives a monthly payment of AED 7,628.91 including insurance. The calculator below recalculates all of it on your own price, deposit and term, and the table breaks out every fee line by line, because that is where most of the difference between one country and another sits, far more than in the interest rate itself.

Everything you need to know about buying property in the UAE

Buying property in the United Arab Emirates (Dubai, Abu Dhabi) involves specific fees: the 4% DLD fee, agent commission, NOC and trustee fees. Understanding these costs helps you better prepare your budget, whether you are a UAE resident or a foreign investor benefiting from the freehold regime.

DLD Fee: the Dubai Land Department transfer tax

The DLD fee (Dubai Land Department fee) is the main property transfer tax in the United Arab Emirates. It amounts to 4% of the purchase price and is paid at the time of property transfer. This fee is usually split equally between buyer and seller (2% each), but this arrangement is negotiable. The DLD fee applies to both freehold properties and leasehold arrangements. For off-plan purchases, the Oqood system handles interim registration with similar fees.

RERA and real estate market regulation

RERA (Real Estate Regulatory Authority) is the regulatory body for Dubai's real estate market, operating under the DLD. RERA oversees developers, real estate agents and property management companies. Every agent must hold a valid RERA card (broker ID) to practice legally. RERA also sets rent increase rules through the RERA index and manages escrow accounts for off-plan projects to protect buyers. Always verify your agent's RERA number before signing.

Freehold vs Leasehold: which ownership type?

In the UAE, foreigners can buy full ownership (freehold) in designated zones. In Dubai, main freehold areas include Dubai Marina, Downtown Dubai, Palm Jumeirah, JBR, Business Bay and Dubai Hills. Under freehold, you own the property and land in perpetuity. Leasehold grants usage rights for 30 to 99 years, typically in non-freehold zones. In Abu Dhabi, designated investment zones (such as Saadiyat Island, Yas Island, Al Reem Island) have offered freehold to foreigners since 2019.

Golden Visa: invest and reside in the UAE

The UAE Golden Visa program grants a 10-year residence visa to real estate investors. To qualify, you must purchase property worth at least AED 2 million (approximately USD 545,000). This visa is renewable, requires no local sponsor and allows you to sponsor your family. The investment can be in one or multiple properties, mortgage included provided the amount paid is at least AED 2 million. The Golden Visa grants access to an Emirates ID, local banking and residence facilities with no continuous presence requirement.

Oqood: off-plan purchase registration

Oqood is the Dubai Land Department's registration system for off-plan (under construction) sales contracts. When buying off-plan, the sales contract is registered through the Oqood system, guaranteeing the buyer's rights before property handover. Oqood fees amount to 4% of the purchase price plus administrative charges. Once the property is completed, the Oqood registration is converted into a definitive title deed with the DLD. Oqood registration protects the buyer in case of developer default.

DEWA and service charges

Property owners in the UAE should budget for recurring costs. The DEWA deposit (Dubai Electricity and Water Authority) is AED 2,000 for an apartment and AED 4,000 for a villa. Service charges range from AED 10 to 40 per square foot per year depending on building quality and amenities (pool, gym, security, parking). On average, for a 1,000 sq ft apartment, expect AED 15,000 to 25,000 per year. These charges cover common area maintenance, central AC (in some buildings) and management services.

UAE mortgages: conditions for residents and non-residents

UAE banks offer mortgages to both residents and non-residents. For residents, the minimum down payment is 20% for a first property (up to AED 5M) and 30% above that. For non-residents, the minimum down payment is 20 to 25%. Maximum term is 25 years and the loan cannot extend beyond age 65 for employees and 70 for self-employed. The rate is usually variable, based on EIBOR (Emirates Interbank Offered Rate) plus a margin of 1 to 2%. Fixed rates for 1 to 5 years are also available.

UAE property taxation: 0% income tax

One of the main advantages of investing in the United Arab Emirates is the absence of income tax, including on rental income and capital gains. There is no annual property tax per se, but owners pay municipality fees of 5% of annual rent (added to the DEWA bill) when renting out. For owner-occupied properties, a housing fee of 5% of estimated rental value applies. The 5% VAT does not apply to residential property sales but applies to commercial properties.

UAE transaction fees summary table

Detailed comparison of each fee component between resale and off-plan purchases in the United Arab Emirates.

Component	Resale	New build (Off-plan)	Detail
DLD Fee	4%	4% (Oqood)	Transfer tax paid to Dubai Land Department
Agent commission	2%	2%	RERA-registered real estate agent commission
NOC Fee	~AED 5,000	~AED 1,000	Developer's no-objection certificate
Trustee Fee	AED 4,000 + VAT	AED 4,000 + VAT	Approved trustee fee for transfer (AED 2,000 + VAT below AED 500,000)
Mortgage Registration	0.25%	0.25%	Mortgage registration with DLD
Valuation Fee	~AED 3,000	~AED 3,000	Property valuation by approved expert
Estimated total	~6-7%	~6-7%	Percentage of property price

Key steps for buying property in the UAE

Mortgage pre-approval and property selection

Obtain mortgage pre-approval from a local bank (ENBD, ADCB, Mashreq, etc.) to determine your borrowing capacity. Select a property in a freehold zone if you are a foreigner. Verify that the agent holds a valid RERA card. For off-plan purchases, ensure the project is registered with the DLD with a compliant escrow account.

MOU signing and NOC obtainment

Sign the MOU (Memorandum of Understanding) – equivalent to a sale agreement – and pay a 10% deposit. The seller then requests the NOC (No Objection Certificate) from the developer, confirming no outstanding charges on the property. This process typically takes 5 to 10 business days. The bank proceeds with the property valuation.

Property transfer at the DLD

The property transfer takes place at the DLD office (or via the online Dubai REST system). Both parties, the trustee and bank representative attend. You pay the 4% DLD fee, trustee fees and agent commission. The title deed is issued immediately in the buyer's name. Keys are handed over on the same day or per contract terms.

Frequently asked questions about buying property in the UAE

Can a foreigner buy property in the United Arab Emirates?

Yes, foreigners of any nationality can buy freehold property in designated zones of Dubai and Abu Dhabi. No nationality restrictions apply. You do not need a residence visa to buy, but purchasing a property worth AED 750,000 or more can entitle you to a 2-year residence visa, and AED 2 million or more to the 10-year Golden Visa.

Can the 4% DLD fee be negotiated?

The 4% DLD fee is a government tax that is non-negotiable. However, the split between buyer and seller is negotiable. Traditionally, each party pays 2%, but in a buyer's market, you may negotiate for the seller to cover a larger share. Some developers occasionally offer a DLD fee waiver as a sales incentive for off-plan projects.

What is the difference between fixed and variable rates in the UAE?

Most UAE mortgages are variable rate, indexed to EIBOR (Emirates Interbank Offered Rate) 3-month or 1-year, plus the bank's fixed margin (1 to 2%). Some banks offer fixed rates for an initial period of 1 to 5 years, after which the rate becomes variable. Fixed rates offer predictability, while variable rates can benefit from rate cuts. Note: early repayment penalties are capped at 1% of outstanding balance or AED 10,000.

What is the minimum down payment to buy in Dubai?

The minimum down payment depends on your status and property value. For residents: 20% for a first property under AED 5 million, and 30% above AED 5 million or for a second property. For non-residents: 20 to 25% minimum. Off-plan properties often have attractive payment plans (e.g., 10% on booking, 40% during construction, 50% on handover). These rules are set by the UAE Central Bank.

What is the NOC and why is it required?

The NOC (No Objection Certificate) is a document issued by the property developer confirming they have no objection to the property transfer. The NOC certifies that all service charges are up to date and there are no ongoing disputes on the property. It is mandatory for any property transfer at the DLD. The cost ranges from AED 1,000 to 5,000 depending on the developer. Some developers issue the NOC within 24 hours, others take up to 5 business days.

What are the recurring costs after buying in the UAE?

After purchase, recurring costs include: service charges of AED 10 to 40/sqft/year, DEWA deposit (AED 2,000-4,000 on setup), municipality fee of 5% of annual rent (or estimated rental value), home insurance and potential mortgage repayment. There is no annual property tax or income tax on rental income. Service charges cover maintenance, security, common area AC and amenities.

What is the difference between freehold and leasehold areas in Dubai?

In Dubai, freehold areas allow foreign nationals to purchase property with full ownership rights, including the right to sell, lease, or inherit without restrictions. Popular freehold zones include Dubai Marina, Downtown Dubai, Palm Jumeirah, and JBR. Leasehold areas grant ownership for up to 99 years but restrict outright land ownership. Since 2002, the Dubai government has progressively opened more areas to freehold foreign ownership. It is essential to verify the property's title deed (Oqood) status and ensure it is registered with the Dubai Land Department (DLD) before completing any transaction.

UAE real estate glossary

DLD Fee

4% property transfer tax paid to the Dubai Land Department. The main transaction fee for real estate in Dubai.

RERA

Real Estate Regulatory Authority – Dubai's real estate regulatory body. Oversees agents, developers and property management companies.

Freehold

Full ownership regime allowing foreigners to own property and land in perpetuity in designated zones of Dubai and Abu Dhabi.

Oqood

DLD's off-plan purchase contract registration system. Protects buyer rights before property handover by the developer.

NOC (No Objection Certificate)

Certificate issued by the developer confirming no unpaid charges or disputes on the property. Mandatory for any DLD transfer.

Golden Visa

10-year residence visa granted to real estate investors who purchase property worth at least AED 2 million in the UAE.

EIBOR

Emirates Interbank Offered Rate – the UAE's benchmark interbank rate used to index variable-rate mortgages.

Service Charges

Annual community fees covering common area maintenance, security, amenities (pool, gym) and building management.

Title Deed

Official property ownership document issued by the DLD in the buyer's name. Definitive proof of property ownership in the UAE.

Oqood

The registration system for off-plan properties in Dubai managed by the Dubai Land Department. Oqood certificates protect buyers' rights during construction and are converted to full title deeds upon project completion.

DLD (Dubai Land Department)

The government authority responsible for regulating and registering all real estate transactions in Dubai. All property purchases must be registered with DLD, which charges a 4% transfer fee on the property value.