Dubai is a thriving city that attracts expats from around the world. The appeals of a luxurious lifestyle, tax-free income, high standard of living, and general safety draw many people in. Next to business opportunities and a multitude of job openings is another option for both investors to consider: real estate.


Dubai's real estate market is booming, offering a diverse range of housing options, from studio apartments to luxury villas, available to buyers worldwide. But buying property in Dubai involves more than just having the financial means. It requires a good understanding of local property laws, homeownership regulations, and legal guidelines to ensure that your investment is secure and legally protected. 

Here are the seven important legal factors to consider when purchasing property in Dubai as an expat.

1. Know the Difference Between Freehold and Leasehold Properties

Before purchasing property in Dubai, it’s essential to understand whether the property is freehold or leasehold. Freehold properties allow expats to own both the property and the land it stands on. However, only properties located in "freehold zones", or specific areas approved for foreign ownership, can be considered. Freehold ownership also allows resale or inheritance, which might be important to families thinking of living in Dubai long-term. 

Leasehold properties, on the other hand, are based on long-term leases that usually last 99 years (or less). During this time, the land remains under the ownership of the original owner. The property is free to use as the tenants wish, but ultimately, ownership belongs to the original (usually local) owner. 

Knowing which type of ownership to choose will affect your rights, resale options, and overall legal protection as the tenant or owner of the property. It’s therefore critical to understand the differences between the two and choose the right setup for you.

2. Check the Developer’s Reputation Before Signing on the Project

Dubai’s real estate market is filled with many developers, but not all of them operate under the same standards. Always verify that the developer you choose to work with is registered with the Dubai Real Estate Regulatory Agency (RERA). You can use RERA’s database to confirm the developer’s record, completed projects, and any legal issues they might have faced in the past. 

Reading online reviews and client testimonials about the developer can help investors decide who they want to trust with the project. Working with a reliable developer lowers the risk of project delays, disputes over property titles, and unmet expectations. In the long term, it’s always worth taking the time to find and choose the right developer.

3. Get Clear On Off-Plan Property Regulations

Buying an off-plan property essentially means buying a project that is still under construction. It comes with advantages like flexible payment plans and the potential for higher capital growth. Both make it a popular choice among foreign investors.

However, legal checks are essential before going through an off-plan property purchase. First and foremost, investors need to be sure that their chosen project is registered with RERA. Plus, all payments must be made through a RERA-approved escrow account. This type of account protects your funds in the case that the developer fails to deliver according to plan. 

The good news is that Dubai’s property laws are designed to protect off-plan buyers. Even still, it’s important to understand your rights as a buyer, especially in the case of project delays and modifications.

4. Review the Sales and Purchase Agreement

The Sales and Purchase Agreement (SPA) defines all legal terms between the buyer and the seller. It includes payment milestones, handover timelines, penalties for delays, and details on the responsibilities of both parties. 

Because the Sales and Purchase Agreement is a binding contract, having a qualified real estate lawyer review it is strongly advised. A good lawyer will help you understand any unclear clauses, propose corrections for potential errors or issues within the document, and make sure that the agreement is in line with UAE property laws.

5. Understand Mortgage Laws and Requirements

If you need financing and are considering taking out a loan, we recommend learning about Dubai’s mortgage rules (that apply specifically to expats). Most banks in the UAE allow foreigners to borrow up to 75% of an off-plan property’s value and up to 80% of a completed property’s value.

Mortgage approval usually depends on several factors, most notably on your income, employment stability, and residency status. Those applying for a mortgage can also expect to pay additional fees for valuation, registration, and processing. It’s important to be aware of these details from the beginning, to help plan your budget and avoid unpleasant surprises down the line.

6. Verify the Title Deed

Every property in Dubai has a title deed issued by the Dubai Land Department (DLD). This is an official document that proves the ownership of a property and confirms that it is legally recognized by the government. 

Before you make any payment, make sure the property has a clean title without any disputes, mortgages, or unpaid debts. Also, ensure it is registered in the name of the current owner or developer. For expats choosing the freehold option, it’s also important to confirm that the property is located in an approved freehold area. A legal consultant can help you work through these details and resolve any potential misalignments.

7. Consider Having A UAE Will and POA

Having a valid will in the UAE is an important step for expat property owners. Without one, your assets may be subject to Sharia Law, which might not reflect your personal wishes. Writing a will that is registered in the UAE ensures that your property will be inherited according to your own plan. 

Additionally, having a Power of Attorney (POA) can be very useful in the case that legal matters arise while you are outside the country. It allows a trusted person to manage property transactions, legal procedures, and official issues regarding the property, all on your behalf. Having a POA is common among expats living in Dubai to ensure that everything runs smoothly, even if they are not in the country.

Final Thoughts

Purchasing property in Dubai is generally a great investment option. It’s no surprise that expats from around the world are looking to secure a home in the UAE, for either personal use or simply as an investment.

Understanding the legal framework around real estate purchases is key to avoiding risks and bad deals. Partnering with an experienced legal advisor or real estate consultant can help ensure that the process runs safely and efficiently, leaving you with the best possible deal. It does take preparation, but once everything is sorted, you’ll be ready to enjoy the security and the opportunities that come with owning property in one of the world’s most dynamic cities, Dubai.

If you’re seeking legal guidance on buying real estate in the UAE, our team at Credibility Corporate Group is here to help. Our legal experts help investors secure the best deals, ensuring that the process runs safely and legally from start to finish.

Contact our team today for more information and to book a free appointment with one of our legal consultants! We look forward to assisting you.