Investing in real estate in Dubai is becoming increasingly popular among international buyers. This modern, dynamic emirate offers stability, high rental yields, and zero income tax, making it an attractive destination. However, before purchasing an apartment in Dubai, it’s important to understand some key facts. Here are the 10 most common questions foreign investors ask:

1. Can foreigners own property in Dubai?

Yes, foreign investors can legally own property in designated freehold areas in Dubai. These are government-approved zones where foreigners can purchase property under their name with full ownership rights.

2. What’s the difference between freehold and leasehold ownership?

• Freehold – You own the property and the land beneath it outright and indefinitely. You can sell, lease, or transfer the property without restriction.

• Leasehold – You own the property for a fixed period, usually 30 to 99 years. After the lease period ends, ownership reverts to the original owner (usually the developer or government).

3. What are the current apartment prices in Dubai?

Prices vary depending on location, project type, and construction phase. Generally:

• Studio: from AED 600,000 (approx. EUR 150,000)

• 1-bedroom: from AED 950,000 (approx. EUR 240 000)

• 2-bedroom: from AED 1,200,000 and up

Luxury apartments in areas like Dubai Marina or beachfront communities can go for several million dirhams.

4. What is an “off-plan” property?

An off-plan property is one that is purchased directly from the developer before it is built or completed. Advantages include lower prices and flexible payment plans. Risks include construction delays or potential project changes.

5. What is the “secondary market”?

The secondary market refers to ready or completed properties that are being resold by a current owner. Benefits include immediate handover and the ability to view the actual unit. Prices may be higher than off-plan, but the investment is less risky.

6. What payment plans are available when buying property?

Developers offer various flexible payment plans, most commonly:

• 60/40 – 60% during construction, 40% upon handover

• Post-handover plans – a portion of the price is paid after moving in, typically over 2–5 years

• 0% interest over the full term

These options are especially popular for off-plan investments.

7. Can foreigners get a mortgage in Dubai?

Yes, UAE banks offer mortgages to non-residents, though conditions are typically stricter than for residents:

• A minimum down payment of 20–25% is usually required

• Interest rates range from 4-6% annually

• Mortgage terms can go up to 25 years

Some banks may require proof of income, employment contracts, or business documents.

8. What are the costs associated with buying property?

In addition to the property price, there are other costs to consider:

• Dubai Land Department (DLD) fee: 4% of the purchase price

• Administrative fees: approx. AED 2,000 – 5,000

• Service and maintenance fees - service charge: annual charges depending on the project (around AED 10–30 per sqft)

9. What kind of rental yields can I expect from an apartment?

Dubai offers some of the highest rental yields in the world:

• 6–10% net annually is common in areas like Dubai Marina, Downtown Dubai, or Jumeirah Village Circle.

• Short-term rentals (e.g., Airbnb) can bring even higher returns, but require proper licensing and property management.

10. Is it safe to invest in Dubai real estate?

Yes. Dubai’s property market is regulated by the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA). Key protections include:

• Transparent legal framework

• Buyer protection via escrow accounts

• Reputable, government-approved developers (e.g., Emaar, Nakheel, Iman, Object1, Sobha)

It’s recommended to work with a licensed real estate agent and legal advisor, especially for off-plan purchases.