Buying Property in Dubai as a New Zealander: 2024 Guide

Dubai is a global city that seamlessly blends tradition with modernity.

Known for its towering skyscrapers, luxurious lifestyle, and innovative infrastructure, Dubai is one of the world’s leading business hubs and tourist destinations.

As the most populous city in the United Arab Emirates (UAE), it attracts millions of visitors each year with its iconic landmarks like the Burj Khalifa, the world’s tallest building, and the Palm Jumeirah, a man-made island shaped like a palm tree.

Culturally, Dubai is a melting pot of nationalities, with over 80% of its population comprising expatriates. This community fosters a vibrant, cosmopolitan atmosphere, influenced by traditions from the Middle East, South Asia, Europe, and beyond.

The climate in Dubai is hot and arid, with temperatures soaring above 40°C (104°F) during the summer months. The city experiences mild winters, making it a popular destination during this time.

With its year-round sunshine and world-class amenities, Dubai offers a dynamic lifestyle that appeals to both investors and those looking to settle down.

Population distribution across UAE's regions

Why invest in Dubai?

Dubai’s real estate market has become a magnet for global investors due to a combination of factors that make it one of the most attractive destinations for property investment.

First and foremost, Dubai offers strong potential for high returns on investment (ROI), with average rental yields ranging from 5% to 8% in many areas—significantly higher than in many other major cities around the world.

One of the key draws is Dubai’s tax-free environment. The city imposes no property tax, income tax, or capital gains tax, allowing investors to maximize their returns. Additionally, the UAE's stable political environment, robust legal framework, and strategic location as a gateway between Europe, Asia, and Africa further solidify Dubai’s position as a global investment hub.

Dubai’s thriving tourism sector, which consistently ranks among the most-visited cities worldwide, also fuels demand for short-term rental properties. Landmark events like Expo 2020 (now extended as a legacy project) and upcoming initiatives under Dubai’s Vision 2040 plan continue to bolster infrastructure, attracting both tourists and residents. As a result, areas like Downtown Dubai, Dubai Marina, and Palm Jumeirah remain in high demand, making them prime spots for property investment.

Another compelling reason to invest in Dubai is its pro-business government policies. The introduction of long-term visas, including the 10-year Golden Visa for investors, entrepreneurs, and highly skilled professionals, makes it easier for foreign nationals to live and work in Dubai.

As we move through 2024, Dubai’s real estate market continues to show resilience and growth, driven by strong demand, government initiatives, and a diversified economy.

After experiencing significant momentum in 2023, the market remains bullish, with key sectors such as luxury properties and waterfront developments witnessing sustained demand.

One of the most notable trends is the ongoing boom in luxury real estate. High-net-worth individuals are increasingly attracted to exclusive communities like Palm Jumeirah, Dubai Hills Estate, and Emirates Hills, where high-end villas and apartments are fetching record prices.

Another significant trend is the growing demand for off-plan properties. Developers are offering flexible payment plans and attractive incentives to buyers, making off-plan investments an appealing option for those looking to capitalize on future growth. Areas like Business Bay, Downtown Dubai, and Dubai Creek Harbour are seeing considerable interest from investors eyeing both capital appreciation and rental income.

Sustainability is also shaping the market in 2024. There is increasing demand for eco-friendly and energy-efficient homes, driven by both consumer preferences and government regulations. Developments incorporating green building standards and smart technology are gaining popularity, as buyers become more conscious of environmental impact and long-term savings.

Average cost of buying property in Dubai

The cost of buying property in Dubai varies widely depending on the location, type of property, and market conditions.

As of 2024, the following are the average property prices in some of the most popular areas of Dubai:

Average cost of buying property in Dubai (by area) in NZD per square meter

While these figures provide a snapshot of the current market, property prices in Dubai can vary significantly based on the exact location, property type, and market conditions.

You can easily track the latest trends and price evolutions on our dedicated page:

1. Downtown Dubai: As one of the most iconic and sought-after locations, properties near landmarks like the Burj Khalifa and Dubai Mall command premium prices, especially for luxury apartments and penthouses.
2. Dubai Marina: Known for its waterfront living and vibrant nightlife, Dubai Marina continues to attract both residents and investors, particularly for high-rise apartments with sea or marina views.
3. Palm Jumeirah: As a symbol of luxury, properties on the Palm, especially villas and beachfront apartments, are among the most expensive in Dubai, offering exclusive amenities and private beach access.
4. Business Bay: This area offers a mix of commercial and residential properties with a strategic location near Downtown Dubai. It’s popular among young professionals and investors looking for strong rental yields.
5. Jumeirah Village Circle (JVC): Known for more affordable options, JVC is popular among families and investors seeking lower entry points while still enjoying community amenities.
6. Dubai Hills Estate: A master-planned community offering modern villas, townhouses, and apartments, Dubai Hills is favored by families looking for greenery, parks, and top-tier schools.
7. Arabian Ranches: Offering suburban living with spacious villas and community-centric amenities, Arabian Ranches appeals to those looking for a quiet lifestyle with good connectivity.
8. Al Barsha: Centrally located and known for its mix of villas and apartments, Al Barsha is a preferred area for those looking for a balance between cost and convenience.

Yes, New Zealanders can easily purchase property in Dubai, thanks to clear regulations and a welcoming legal framework. Dubai allows non-residents and expatriates to buy property in designated freehold areas, where they can own property outright with full ownership rights. This makes Dubai one of the most accessible cities in the Middle East for foreign investors.

There are no significant restrictions on foreign ownership in these freehold areas, which include popular locations like Downtown Dubai, Palm Jumeirah, Dubai Marina, Jumeirah Lakes Towers (JLT), and Arabian Ranches. Foreigners can buy apartments, villas, and even plots of land in these zones, either for residential use or as investment properties.

What is the Golden Visa, and how does it work in Dubai?

The UAE’s Golden Visa program is a residency initiative aimed at attracting long-term foreign investment and skilled professionals by granting extended residency rights to investors, entrepreneurs, and certain professionals. For real estate investors in Dubai, the Golden Visa offers significant benefits, making it a popular choice for those looking to establish a more permanent presence in the UAE.

1. Minimum investment requirement: To qualify for a Golden Visa under the real estate category, investors need to purchase property worth at least AED 2 million (approximately USD 545,000). This investment can be in a single property or across multiple properties, as long as the total value meets the minimum requirement.

2. Property type: The property must be in one of Dubai’s freehold zones, allowing for full ownership by foreign nationals. Both ready and off-plan properties are eligible, but the investment must be fully paid and free from any mortgages.

3. Duration of the visa: The Golden Visa is typically granted for a 10-year period, with the option for automatic renewal as long as the investment is maintained.

4. Benefits of the Golden Visa:

   • Residency rights: The Golden Visa allows investors, along with their families (spouse and children), to reside in the UAE long-term.
   • No sponsor requirement: Unlike other residency visas, Golden Visa holders do not need a local sponsor.
   • Visa-free travel: Holders of the Golden Visa can travel freely within the UAE and enjoy ease of access to other GCC countries.
   • Path to business and education opportunities: Visa holders can engage in business activities and access educational facilities for their dependents without requiring additional approvals.

5. Eligibility for retirees and entrepreneurs: The Golden Visa is also available for entrepreneurs, senior executives, and retirees who meet specific criteria related to investment, savings, or professional achievements.

The process of applying for the Golden Visa involves purchasing the property, providing proof of ownership and valuation, and submitting relevant documents to the Dubai Land Department or through authorized real estate developers and agents. Once approved, the investor receives their residency visa.

Sources:

1. Dubai Land Department - Golden Visa Overview
2. UAE Government Portal - Golden Visa Details

1. Make sure you have a valid passport and visa

As a foreigner, you do not need a special residence visa to purchase property in Dubai. However, having a valid passport is essential. While not required to buy property, many investors choose to apply for a long-term visa (like a property investor visa) once the property is purchased.

2. Open a UAE bank account

Opening a local bank account is advisable to manage payments related to the property purchase, including the deposit, purchase price, taxes, and ongoing utility payments.

To open a bank account, you’ll typically need:

• A valid passport
• Proof of residence (if you already reside in Dubai)
• Proof of income or employment
• An initial deposit amount, which varies by bank

Most banks in Dubai offer tailored accounts for non-residents or investors.

3. Start searching for properties

Explore online listings on Properstar to find properties for sale in your area of interest. You can leverage our advanced filters and even draw your preferred area on the map.

Additionally, hiring a RERA-registered real estate agent can provide significant market insights, help in the negotiation process, and ensure that the property meets all legal requirements. Dubai has specific freehold areas where foreigners can own property outright, such as Downtown Dubai, Palm Jumeirah, Dubai Marina, and Jumeirah Lakes Towers.

Make sure to conduct thorough due diligence, including checking the developer’s reputation and verifying that the property is in a freehold zone.

4. Find the right real estate agent

A knowledgeable real estate agent in Dubai can be your key partner in navigating the complex property market of the city, helping you find the best properties that match your needs, and guiding you through negotiations and legalities.

Here’s how to ensure you choose the best professional:

• Local expertise: Dubai’s real estate market is complex and ever-evolving. Look for agents who specialize in the area you are targeting, whether it’s luxury properties in Palm Jumeirah, apartments in Downtown Dubai, or investment properties in newer areas like Dubai Hills Estate. A good agent should have in-depth knowledge of local property trends, pricing strategies, and legal regulations.

• RERA certification: In Dubai, real estate agents are regulated by the Real Estate Regulatory Agency (RERA). Ensure that the agent is RERA-certified, which confirms that they are legally qualified and adhere to professional standards. You can verify an agent’s credentials via the Dubai Land Department (DLD) website.

• Language and communication: If you’re not fluent in Arabic, selecting an agent who speaks your preferred language is crucial. They will play a pivotal role in liaising with sellers, property developers, and legal representatives, so clear communication is key.

• Experience and track record: Choose an agent with a proven history of assisting foreign buyers in Dubai. An experienced agent can help you navigate common challenges faced by international investors, from understanding freehold versus leasehold areas to securing mortgage financing if needed.

You can utilize Properstar's agent search feature to find reputable local real estate agents. Our platform offers access to a wide network of professionals vetted for their expertise and reliability, making it easier to find someone who meets your specific needs.

5. Conduct property viewings

Once you have identified properties that meet your criteria, it's time to conduct in-person viewings. Assess the property's condition, location, amenities, and suitability for your needs.

When conducting viewings, consider:

• The quality of construction and any potential issues (like maintenance needs).
• The property’s proximity to essential amenities like schools, hospitals, public transport, and shopping centers.
• The overall community atmosphere and the quality of facilities such as gyms, pools, and parks.

6. Legal checks and due diligence

Before committing to a property purchase in Dubai, conduct thorough legal checks and due diligence.

• Title deed verification: The Dubai Land Department (DLD) manages the property registry in Dubai. You can verify the title deed through the DLD’s online portal or with the assistance of your agent. This step ensures that the property is free from liens, mortgages, or disputes and that the seller is the legal owner.

• Compliance with zoning and regulations: Ensure that the property complies with local zoning laws and regulations. This is especially important for off-plan purchases where the property is still under construction. Confirm that the developer has obtained all the necessary permits and approvals from relevant authorities, including the Real Estate Regulatory Agency (RERA).

• Property inspection: Although not mandatory, it is highly recommended to have a professional property inspection to assess the condition of the building, utilities, and overall structure. Inspections can uncover hidden issues that could lead to significant repair costs later.

7. Make an offer

Once you have identified the right property, work with your agent to make a formal offer. Negotiation is common in Dubai’s property market, so the initial asking price can often be adjusted. If the offer is accepted, you’ll move forward to the contract stage.

8. Sign the sales agreement (Memorandum of Understanding - MOU)

In Dubai, the preliminary agreement between the buyer and seller is known as a Memorandum of Understanding (MOU) or Form F. This document outlines the terms of the sale, including the purchase price, payment schedule, and any other conditions agreed upon.

Typically, a 10% deposit is required at this stage, which is held in escrow by the agent or developer. The MOU is legally binding, and if the buyer backs out, they may forfeit their deposit.

9. Finalize mortgage arrangements (if applicable)

If you’re financing the purchase through a mortgage, finalize the terms with your bank. Dubai banks typically offer mortgages to foreigners with competitive rates, but they may require a down payment of 20-25% for expats. Ensure your mortgage approval is in place before proceeding to the next stage.

10. Sign the sales and purchase agreement (SPA)

The Sales and Purchase Agreement (SPA) is the final binding contract between the buyer and seller. This document finalizes the sale and includes all legal terms, payment details, and transfer conditions.

At this stage:

• The buyer pays the remaining balance, any applicable fees, and ensures all documents are in order.
• Both parties meet at the Dubai Land Department (DLD) to sign the SPA, completing the legal transfer of ownership.

11. Register the property

Once the SPA is signed and the payment is completed, the property needs to be registered with the Dubai Land Department (DLD). The new owner will receive a title deed in their name, confirming ownership.

12. Pay associated fees

Unlike many other countries, Dubai does not impose property taxes, making it an attractive investment destination. However, there are fees associated with the purchase:

Fees for buying property

These fees are typically split between the buyer and seller, but the specifics should be agreed upon during negotiations.

13. Transfer utilities and set up local services

After the property is registered in your name, you’ll need to transfer utilities such as electricity, water, and cooling to your name. The main utility provider is DEWA (Dubai Electricity and Water Authority). You may also need to set up services for district cooling (if applicable) through providers like Empower or Tabreed.

Additional resources for official information

• Dubai Land Department (DLD): For title deed verification and property registration.
• Real Estate Regulatory Agency (RERA): For information on licensed agents, developers, and regulations.
• DEWA (Dubai Electricity and Water Authority): For setting up utilities.

Given the complexity of the process, hiring a property lawyer or using the services of an experienced agent is highly advisable.

Many major banks in Dubai, such as Emirates NBD, Mashreq Bank, and HSBC, offer mortgages specifically tailored for foreign buyers. Mortgage terms and conditions may differ slightly for non-residents compared to residents, but Dubai is well-known for its accessibility to international property investors.

Interest rates in Dubai typically range between 3.5% to 5% for fixed-rate mortgages, though rates can fluctuate depending on factors such as loan tenure, down payment, and the applicant’s financial profile. It’s essential to shop around for competitive rates as they can vary across different banks and mortgage providers.

How to obtain a mortgage

To apply for a mortgage in Dubai as a foreigner, you’ll need to gather key documentation, which usually includes:

• A valid passport
• Proof of income (e.g., salary slips, employment letter)
• Recent bank statements (typically covering the last 6-12 months)
• A credit report from your home country (if available)
• Proof of current residence
• Evidence of the down payment

Dubai banks generally accept documents in English, but if your documents are in another language, notarized translations may be required.

Steps to securing a mortgage

1. Get a mortgage pre-approval: The first step is to approach multiple banks for a pre-approval, which gives you a clear understanding of the loan amount you qualify for and the interest rates you can expect. This step is crucial in determining your budget before you start property hunting.

2. Submit required documents: Once you’ve chosen a lender, you’ll need to submit all necessary documentation. The bank will evaluate your application based on your financial profile, creditworthiness, and the property’s value.

3. Property valuation: The bank will conduct a valuation to determine the property's market value and verify that it meets their lending criteria. The approved loan amount is usually based on the lower of either the property’s market value or the agreed sale price.

4. Mortgage approval and offer letter: If your application is successful, the bank will issue an offer letter detailing the loan amount, interest rate, repayment period, and any special terms.

5. Legal and administrative process: After mortgage approval, the bank manages most of the legal procedures, including coordinating with the developer or seller and the Dubai Land Department (DLD).

Special considerations for non-residents

Non-residents in Dubai can typically obtain mortgages covering 50% to 75% of the property’s sale price or appraised value, depending on the property type and location. A down payment of at least 25% to 50% is required for non-residents, along with associated fees and taxes.

Key points to note:

• Interest rates: Non-resident mortgage interest rates are generally slightly higher than those offered to residents, reflecting the additional risk lenders take when dealing with international clients.
• Loan tenure: Non-residents often face shorter loan tenures (typically up to 20 years), with most banks requiring that the loan term ends by the time the borrower turns 65-70 years old.
• Mortgage caps: Dubai regulations limit the maximum loan-to-value (LTV) ratios for non-residents, typically capping them at 50-75%, depending on the property type and the buyer’s profile.

While the process for obtaining a mortgage in Dubai is straightforward, it’s recommended to work with a mortgage broker or financial advisor familiar with the local market.

While Dubai is a lucrative market for property investment, there are potential risks and challenges that buyers—especially foreigners—should be aware of. Here are some common pitfalls:

Overpaying due to lack of market knowledge

The Dubai property market is dynamic, with prices influenced by economic conditions, new developments, and demand trends. Without thorough research or local expertise, there’s a risk of overpaying for a property. It’s crucial to understand the market, assess comparable properties, and work with a reputable, RERA-registered agent who knows the ins and outs of specific areas.

Developer delays and off-plan risks

Purchasing off-plan properties (those under construction) is common in Dubai due to attractive payment plans and lower prices. However, project delays are a frequent issue. Some developments get delayed by months or even years, and in rare cases, projects are abandoned altogether. Always verify the developer’s track record and financial stability before committing to an off-plan purchase.

Issues with property quality and maintenance

Some properties, especially in high-density developments, may suffer from poor construction quality or inadequate maintenance. This can lead to unexpected repair costs and impact the property’s value. Conducting a thorough property inspection and reviewing the maintenance history are critical steps before finalizing a purchase.

Legal and regulatory complexities

Although Dubai’s property laws are well-regulated by the Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA), legal complexities still exist. These include:

• Zoning and usage restrictions: Certain properties have restrictions on their usage (e.g., residential vs. commercial).
• Freehold vs. leasehold: Not all properties in Dubai are freehold. Some areas only allow leasehold ownership (up to 99 years), which can affect long-term investment strategies.
• Disputes and contract issues: In the event of a dispute, resolution processes can be time-consuming and costly. Engaging a property lawyer to review contracts and terms is highly advisable.