First-Time Buyer Guide
Purchasing property in Dubai as a first-time buyer can be both exciting and overwhelming. Whether you’re looking for a ready-to-move-in home or an off-plan investment, this guide breaks down the process, fees, and key considerations to help you make an informed decision.
1. Ready Properties (Existing Homes)
Process:
Step 1: Find a property (via agent or property website).
Step 2: Sign a Memorandum of Understanding (MoU) and pay a deposit (usually 10%).
Step 3: Seller applies for a No Objection Certificate (NOC) from the developer (depending on property).
Step 4: Register the sale with the Dubai Land Department (DLD) and pay fees.
Step 5: Transfer utilities and move in/rent out.
Timeline: 2-8 weeks (depends if mortgage is involved).
2. Off-Plan Properties (Under Construction)
Process:
Step 1: If in pre-launch - Reserve a unit with a token payment (5-10%, refundable), await launch and pick out a unit from availabilities.
If already launched - Reserve a unit with a deposit (5-20%, non-refundable).
Step 2: Sign the Sales Purchase Agreement (SPA) and pay installments as per the payment plan.
Step 4: Receive handover, pay remaining fees, and register with DLD.
Timeline: 1-4 years (depends on project completion).
Fee Comparison: Ready vs. Off-Plan
DLD Transfer Fee
Both ready and off-plan properties are subject to a 4% Dubai Land Department (DLD) transfer fee based on the purchase price.Agency Commission
Ready Property: Buyers usually pay an agency commission of around 2.1% of the purchase price.
Off-Plan Property: 0%, as most developers cover the commission themselves.
Mortgage Registration & Related Costs
Ready Property: If you're financing your purchase with a mortgage, expect to pay 0.25% of the loan amount as a registration fee. Additional costs include pre-approval application fees, property valuation fees, life and property insurance, and processing fees.
Off-Plan Property: Mortgages are generally not applicable during the construction period, so these fees are not usually incurred until handover (if at all).
Oqood Registration + Admin Fees (Off-Plan Only)
Applicable only to off-plan purchases.
Expect to pay between AED 4,000 to AED 10,000, depending on the developer and project.
Trustee Office Fee
Ready Property: A fee of approximately AED 4,200 is payable at the Trustee Office during the property transfer process.
Off-Plan Property: This fee is usually not applicable since ownership is registered directly with the developer through Oqood.
Note: Fees may vary slightly based on developer and property type.
Why Buy Ready?
✔ Immediate occupancy/rental income (no waiting).
✔ No construction risk (you see what you buy).
✔ Easier to secure a mortgage (banks prefer ready homes).
Why Buy Off-Plan?
✔ Lower entry costs (as low as 10% down).
✔ Higher appreciation potential (buy at launch prices).
✔ Flexible payment plans, avoid mortgage (installments over years).
Key Considerations for First-Time Buyers
Golden Visa Eligibility:
AED 2M+ in any property (ready or off-plan).
Mortgage Rules:
Expats (residents): Up to 80% LTV for first homes. Expats (non-residents): Up to 60% LTV for first homes.
Plot status:
Freehold/leasehold
Developer Reputation:
Pick a developer with a good track record (Emaar, Sobha, Damac, Ellington, Omniyat, Binghatti)
Hidden Costs:
Service charges (for ready properties): AED12-30/sqft yearly. Home insurance: ~AED 500 - 6,000/year.
Interested in beachfront homes? Don’t miss out on my full breakdown of the next big community, Dubai Islands: The Ultimate Guide for Investors and End-Users
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I write for buyers and investors who want to navigate Dubai’s off-plan and waterfront markets with more clarity and less noise.
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