Thinking about acquiring a property in Dubai as a foreigner? One may have come across advertisements stating all of those criteria that personalizes ownership to luxury towers, tax-free returns, high ROIs, and in point of fact, a gateway into the lifestyle of the UAE, but behind those eye-catching brochures, glossy real estate videos, and everything else lies fine print that most property agents do not tell you straight.
This blog is about painting a real picture of property purchase in Dubai-especially for foreigners. Whether you’re a UK investor, a Russian buyer, or an Indian expatriate interested in living in Downtown Dubai, this is all you need to keep from finding any surprises.
What Foreigners Can (And Can’t) Own in Dubai
Dubai allows foreigners to a full ownership of properties in the following
freehold areas: Dubai Marina, Palm Jumeirah, Business Bay.
Leasehold areas mean you can only lease your property as long as it’s for an extended period, even up to 99 years.
Where resale properties are concerned, most of them get flummoxed. The real difference of freehold vs leasehold in Dubai is very crucial in deciding the long term return on investments and rights on properties.
The MoU Isn’t a Contract – but It Is Binding in Law :
There’s a strong myth among the new buyers that a Memorandum of Understanding (MoU) is not binding. But that really is serious commitment to sign that document.
What they don’t like to advertise after you sign the MoU and deposit money (10% generally). You lose this money if you decide to step out of the contract. This is true even if the seller or yourself later happens to have problems.
Impossible to take away to adverb. It is a standard RERA form but you should get a legal review before signing.
You Could Need a Lawyer- Even If No One Tells You So:
Their speech shall only be, “You don’t need a lawyer, we’re handling everything.” But the catch is that they do not work for the client since they are commission-based.
A property lawyer in Dubai undertakes contract reviews, title deed transfers, checks for unpaid dues, and does other general neglect. If buyers skip the step: in fact, they will discover hidden service charges or unpaid mortgages after they pay.
Related: Do You Need a Lawyer to Buy Property in Dubai? Profits and Disasters
Hidden Fees Not Mentioned in the Listing Price
The price at which it is advertised isn’t even the beginning. Here is what is hardly ever mentioned:
- Dubai Land Department (DLD) fee: 4% of property value. (Approx)
- Admin and agency fees: two-three percent. (Approx)
- Oqood registration (for off-plan): ~3,000 AED. (Approx)
- Service charges can go to 25 AED/sqft annually. (Approx)
Bonus Tip– Always check the latest service charge estimate before buying, especially in older buildings.
Can You Buy Without Ever Visiting Dubai?
Yes, and many do-that includes people living in Europe, China, and even the Gulf region. However, distant buying comes with its own traps.
You need these: a Power of Attorney (PoA) signed. An online due diligence preferably by a lawyer. Beware of scams against foreign buyers that are gaining popularity in off-plans.
Is It Really Possible in 2025?
Thriving property market in Dubai includes great reviews about high rental yields and new immigration rules, and incredible investor demand. That’s not to say that a deal necessarily ends up profitable.
Foreign investors should be wary of:
- Overpromised off-plan projects plagued by delays.
- Not a dime of escrow protection in any of those shady deals.
- High risk-impact investments from unregulated agents.
Bottom line: With proper guidance, Dubai can be a really great investment destination for property investment. Just walk in there with open eyes and not just cash in your pocket.
Investing in Dubai properties can be rewarding for foreigners. But before you plunge into it, make sure that you learn all the details.
Freehold restrictions, hidden charges, and legal loopholes, the list of undisclosed issues is endless. The smart ones among investors do their homework on foreign ownership rules; they know legal documents such as the MoU, probe each and every cost, and find a reason to complain even over a minor fee.
If you are an uncertain non-resident investor or expat buyer about your rights, then read on:
👉 Can Foreigners Own Property in Dubai? Legal Rules Explained.
It covers everything you need to know — simply and clearly.