Everything You Need To Know About Renting Or Buying A Residential Property In Dubai


Renting or buying a property in Dubai is a straightforward process, only if you follow the rules and know about Dubai’s property laws, otherwise it would be a fatigue and hectic process for you.  There are steps to follow in every process, rules, and regulations to adhere to, and factors to consider so that your efforts are more successful. The same is true in the real estate market as well. Whether you are buying a property or renting a property, it is important to understand the knowledge of the whole process, the ins, and outs of the procedure, what important factors to consider, and what essential things you need to know before entering the market and finalizing your decision.

Dubai itself is a real estate hub, it has a huge market, and it gives multiple opportunities to homebuyers and investors. For tenants who are looking for luxurious homes at a reasonable rental amount, Dubai is a favorite and attractive destination. To make the whole process simple and to reduce the disputes between homeowners and tenants, the government of the United Arab Emirates has introduced different laws i.e. “Tenancy Contract Law” and there are different departments in Dubai who are organizing and regulating the property matters.

As an expat, if you want to know the legal process of buying a property, with a few easy-to-follow steps, you can make your dream of owning a property in Dubai.

In this blog, we have discussed everything necessary to know about renting or buying a residential property in Dubai. After reading this blog, you can have a successful, smooth, and hassle-free property journey.

Legal Process For Buying A Residential Property In Dubai

The ruler of UAE has declared the land registration law – Law no. 07 of 2006 for buying a property in Dubai. According to this law, UAE and GCC can buy property anywhere in Dubai but foreigners or expats are not allowed to buy property anywhere, there are some restricted areas designated as freehold or leasehold areas in Dubai where they buy and own the property.

Freehold Vs Leasehold Properties

Both types of properties are for foreigners or ex-pats ownership but the main difference between these properties is that in freehold properties, the buyers have full ownership of the property while in leasehold properties, the buyers can own the property for a specific time, which is up to 99 years.

Areas For Freehold Or Leasehold Properties In Dubai

Following are the areas designated for freehold or leasehold properties in Dubai:

  • Downtown Dubai
  • Business Bay
  • Emirates Hills
  • Dubai Marina
  • Palm Jumeirah
  • Dubai Sports City

Legal Steps To Follow For Buying A Residential Property In Dubai

As a buyer, if you wish to have a smooth, hassle-free, and successful process of buying a residential property in Dubai, it is essential to follow the following steps:

Positive Negotiation Between Buyer And Seller

The very first and most effective step that plays a vital role in making your deal successful is your positive negotiation with the seller. In real estate investment, a man who can negotiate and has convincing power can be the most successful person in the field.

After conducting deep research in the real estate market, when you find the property as per needs and expectations then foremost is positive negotiations. In that negotiation, you need to convince the opposite property in your favor.

Finalize The Contract

After positive negotiation, finalize the terms and conditions. To avoid any future misunderstandings, clear the outlines about pricing, payment methods, and other terms and conditions.

Sign A Contract MOU, Memorandum Of Understanding

After finalizing your contract, the next step to follow is to sign a sale contract form, also known as MOU, “Memorandum of Understanding”. This form is available on the official website of DLD, Dubai Land Department.

Both parties will sign this contract in front of the witness, which is normally a Registration Trustee’s office. Moreover, the buyer has to pay an amount of 10% on a payment as a security deposit to the registration trustee.

Application For NOC, No Objection Certificate

The next step is to submit an application for “NOC” No Objection Certification in the real estate developer’s office and some charges are also payable for this application

Visit Dubai Land Department

The final step in Buying residential property in Dubai is to visit the “DLD” Dubai Land Department, in this office, you just need to follow a few steps and after that, your process of buying a property will be completed.

These steps involved:

1. Submit the required documents

  • A payable cheque for the property price
  • Original Emirates ID or password for both parties
  • Signed Contract of Memorandum of understanding
  • Original no objection certificate, NOC

2. Get verification of the data

3. Pay the fees and receive the receipt of payment

4. Receive the output through email

Property keys are handed over to the buyers if both parties submit all the required documents.

Dubai Property Administrative Costs

  • Issuing the Title of Deeds: AED 580
  • Admin Fees to DLD: AED 4,200
  • Fees for the DLD are 4% of the property value

Legal Process For Renting A Residential Property In Dubai

According to a rough estimation, 70% of the population in Dubai is living in rental properties, most of whom are foreigners or expats. Many foreigners, who are living in Dubai for jobs or businesses and are newly shifted to Dubai with their families, cannot afford to buy a property at this stage so they prefer to choose another option which is renting a property.

Rents in Dubai are regularized by the Real Estate Regulatory Agency. To rent a home in Dubai, there is a tenancy contract and legal process to follow. This tenancy contract outlines the rules and regulations and minimizes rental disputes among both parties.

According to tenancy law registered by EJARI, the rental property should not be leased twice at the same time. If any of the properties wants to quit the contract then they have to be informed 90 days before the contract ends. The tenants cannot renovate or decorate the property without the permission of the property owner.

Documents Required For Renting A Property In Dubai

The essential documents required for renting a house for both emirates or foreigners are:

  • Original Emirates ID
  • Passport copies of both parties (tenants and landlords)
  • Valid residence visa copy
  • Security deposit cheque
  • Agency fee cheque

Types Of Properties To Rent In Dubai

  • Villas in compounds
  • Standalone villas or townhouses
  • Apartments
  • Serviced apartments or hotel apartments
  • Furnished and unfurnished homes

Popular Areas In Dubai For Renting Residential Property

Here is the list of the most popular areas for rent in Dubai:

  • Jumeirah Village Circle
  • Dubai Marina
  • Bur Dubai
  • Al Nahda
  • Downtown Dubai
  • Dubai Silicon Oasis
  • International City
  • Jumeirah Golf Estate
  • Business Bay

Know More : erehomes.ae

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