The Ultimate Cheat Sheet for Buying Property in Dubai

Buying property in Dubai is faster than in most global markets, but the sequence matters. Miss a step and you either lose your deposit or lose the unit. This is the full path, in order.

1. Set your real budget, not your headline budget

The purchase price is never the total. Budget for the Dubai Land Department transfer fee of 4 per cent of the purchase price, agency commission of around 2 per cent, trustee office registration, title deed issuance and, if you are financing, mortgage registration and valuation costs. As a planning figure, assume 6 to 8 per cent on top of the price for a ready property bought in cash.

2. Decide freehold or leasehold

Foreign nationals can own freehold in designated areas, which covers most of what buyers actually want: Dubai Marina, Downtown, Palm Jumeirah, Business Bay, Jumeirah Village Circle, Dubai Hills Estate and many more. Leasehold gives you rights for a fixed term, usually up to 99 years, without owning the land. Confirm which one applies before you make an offer.

3. Check the agent before you check the unit

Every legitimate listing in Dubai carries a Trakheesi permit number issued by the Dubai Land Department. Every broker carries a BRN, and every agency an ORN. Ask for them. A listing without a permit number is either out of date or not authorised, and that tells you something about how the rest of the transaction will be handled.

4. Agree terms and sign the Form F

Once you and the seller agree, you sign the Memorandum of Understanding, known in Dubai as Form F, and pay a deposit that is typically 10 per cent. This is the point where the transaction becomes real. Read the completion date and the default clauses carefully, because they decide what happens if either side delays.

5. Get the No Objection Certificate

The developer issues an NOC confirming there are no outstanding service charges on the unit. Unpaid charges do not disappear at sale, so this step protects you directly. Expect the developer to charge a fee and to take a few working days.

6. Transfer at the trustee office

Both parties attend a registration trustee office. The balance is paid, usually by manager's cheque, the DLD fee is settled, and the title deed is issued in your name. If you are buying with a mortgage, your bank attends and registers its interest at the same time.

What about off plan?

Off plan follows a different track. You sign a Sales and Purchase Agreement with the developer, your payments go into a project escrow account protected under Dubai's escrow law, and the sale is registered on the Oqood system rather than issued as an immediate title deed. Ask for the escrow account number and the expected completion date in writing. Both are required in any compliant off plan advertisement.

Costs people forget

• Annual service charges, which vary enormously by community and building
• Chiller and utility registration with DEWA
• Home insurance, which most mortgage lenders require
• Property management fees if you intend to let the unit

There is no annual property tax in Dubai, which is why service charges deserve more attention than buyers usually give them. A low purchase price in a building with high service charges can be the worse deal.