How to choose and buy a flat in Dubai: neighbourhoods, prices, legal aspects

Acquiring property in the UAE may seem like a simple investment, especially against the backdrop of the absence of income tax. However, any deal in the Emirates is accompanied by mandatory financial expenses. The costs of buying real estate in Dubai include not only the payment for the property itself but also dozens of additional fees and duties. And if the buyer does not study the system in advance, the budget may unexpectedly increase by 8-10%.

For proper planning, it is worth analyzing the cost structure — from official payments to government agencies to hidden commissions and insurance. This is especially relevant for those considering long-term investments in Dubai real estate.

Mandatory fees and commissions

Any real estate transaction is accompanied by clearly defined expenses. They are regulated at the state level and do not depend on whether the property is purchased from a developer or on the secondary market. Let’s consider the parameters in more detail:

• registration fee — 4% of the property value, transferred to the Land Department;
• administrative fee — a fixed amount, usually around 580 dirhams;
• agent’s commission — 2% of the price;
• property ownership registration certificate — paid separately, around 250 dirhams;
• notarial support — depending on the company and the complexity of the transaction.

The listed expenses for purchasing property are mandatory. Their payment is necessary to complete the registration and obtain all rights to the property.

Mortgage and additional expenses when buying property in Dubai

If buying a property involves a bank loan, the list of expenses significantly expands. In addition to the main payment for the property, the buyer will need to take into account a number of additional costs associated with the financing process. For example, there is a mortgage fee, which is 0.25% of the total loan amount.

Additionally, banks require a mandatory property valuation, the cost of which can reach 3,500 dirhams. Property insurance also becomes a mandatory condition — its amount is calculated individually depending on the property characteristics and the insurance company’s terms.

Separately paid is the registration of the mortgage agreement at the Land Department, as well as legal and notarial costs associated with the transaction.

These measures ensure transparency of operations and compliance with all legal norms, which is especially important for banks. That is why an investor needs to clarify the loan structure and related obligations in advance, especially if they are a non-resident of the UAE.

However, buyers with confirmed income and a positive credit history can expect more favorable conditions from banks, including reduced rates and flexible repayment terms.

Indirect expenses when buying property and hidden costs of housing in Dubai

In addition to mandatory payments, there is a category of expenses that are rarely mentioned in developers’ brochures. However, they need to be taken into account when budgeting. Hidden expenses when buying property in Dubai include:

• DEWA account transfers (electricity and water);
• deposits for utilities — not always refundable;
• complex maintenance services;
• services of lawyers and translators;
• fee for issuing electronic access cards, parking, and services from the management company;
• property transfer tax — included in the registration fee, but sometimes specified separately in some contracts.

These payments can add several thousand dirhams to the final cost, especially if the property is located in the premium segment with developed infrastructure.

Documents to prepare in advance

To avoid delays and setbacks in the property acquisition process, it is recommended to prepare all the necessary documents in advance, which will not only expedite the process but also help avoid unnecessary expenses related to delays or additional commissions.

The mandatory documents include a valid passport — both a copy and the original will be required. It is also necessary to provide a preliminary agreement with the seller or developer, especially if the transaction is at the reservation stage. In the case of purchasing with a mortgage loan, the bank will require income confirmation.

For foreign citizens, a mandatory requirement is the presence of translated and notarized documents that comply with local legislation requirements. In addition, an application for registration with the Land Department is submitted before the start of the transaction, which directly affects the expenses when buying property in Dubai.

Even with the assistance of an agent, some documents will need to be filled out personally, and the correct completion of these documents directly affects the timing of obtaining the official property ownership certificate.

Property investment: what to know about housing formats

Different types of properties — studios, apartments, villas — entail different levels of expenses. For example, when purchasing a studio in a completed building, the expenses will be lower than when investing in a property under construction. The cost of annual maintenance also varies: for high-budget villas, it is higher than for regular apartments.

Investing in Dubai real estate is profitable if you choose a format with minimal operating costs in advance. This is especially important for those planning to rent out the property and generate a stable income.

Total expenses

On average, expenses when buying property range from 7 to 9% of the property value in Dubai. The main part consists of the registration fee and agent’s commission. With a mortgage, bank fees are added. Neglecting these items can lead to an increase in the budget and delays in processing.

Before proceeding with the transaction, it is advisable to create a budget — taking into account all payments, including mortgage fees, utility deposits, administrative fees, and legal services. This approach will help accurately understand the total cost of ownership.

Expenses when buying property in Dubai: conclusions

A full understanding of the cost structure when buying property in Dubai helps avoid unexpected expenses. Regardless of whether the transaction is made with personal funds or using a mortgage, the buyer faces mandatory commissions and fees. Every investor planning to invest in real estate must consider both direct and indirect expenses. Proper financial calculation is the key to a smooth transaction and effective asset ownership in one of the most stable markets in the Middle East.

The Emirates is no longer associated only with luxury holidays and skyscrapers. The country is impressing with its pace of development and large-scale projects, rapidly establishing itself as one of the world’s most dynamic business hubs. The unique combination of high living comfort, efficient infrastructure and ambitious government policy creates an exceptional environment for entrepreneurs. What exactly are the practical advantages of starting and developing a business in the UAE that make it so attractive? Let’s understand the specific advantages of the jurisdiction.

Dubai: a business oasis in the desert

A city where skyscrapers compete for attention not with nature, but with investment portfolios. The pros of doing business in the Emirates take on density right here.

Dubai provides:

• instant access to markets in Asia, Europe, Africa;
• developed logistics through Jebel Ali, the largest port in the Middle East;
• business infrastructure network: from co-working centres to technology incubators.

Business in Dubai is not limited to luxury – it lives in concrete terms. Export-oriented companies here earn an average of 17 per cent more than in comparable regions, thanks to low costs and the absence of hidden taxes.

Whether to open a business in the UAE: pros and cons

The cost of mistakes in choosing a jurisdiction directly affects the viability of a company. In the Emirates, businesses do not make promises, but concrete processes – fast, regulated and result-oriented. Here, comfort is not promised – it is created normatively. Business in the UAE demonstrates its advantages through real mechanisms, not theoretical conveniences:

1. Startup speed. Free Zone FZ-LLC form is registered in 48 hours. Licence – another 24 hours.
2. Transparent tax environment. No income tax up to 375,000 AED (≈100,000 USD), 9% rate – above this amount.
3. Flexibility of Free Zones. More than 45 free economic zones allow you to choose the conditions by type of activity, visa quota, access to foreign markets.

Example: the DMCC is an area that serves over 22,000 companies specialising in trading, technology, cryptocurrency. This is where 200+ new businesses are registered per month.

Minuses of doing business in the UAE

Behind the facade of tax incentives and business forums are details that are easy to miss. The mistaken perception of the Emirates as a universal comfort zone quickly collides with reality. Entrepreneurship in the Emirates is affirming, but only if you are prepared to consider the other side of the coin.

The minuses of business in the UAE affect:

• high cost of business (opening a company in DMCC – from 11,000 USD);
• The need to consider the culture of negotiation, especially in B2B (high context, preference for personal contacts);
• difficult adaptation to the climate – in summer temperatures reach 50°C, which increases energy costs and reduces the effectiveness of outdoor advertising.

The conditions are not critical, but require adaptation and calculation. Ignoring these factors increases risks and inhibits development, especially in the first 12 months of launch.

Visa, staff and communications

UAE visa for a business owner is issued for up to 10 years (Golden Visa). Personnel require separate sponsorship and quotas. Managing a team requires precise calculation – mistakes are costly.

Employees from the Philippines, India, Egypt and Lebanon form the core of recruitment. The average salary of an office specialist – from 2500 AED (≈680 USD), manager – from 10 000 AED.

The language of communication is English. Arabic is symbolic, important in legal documents and negotiations with government agencies.

Marketing and profit without illusions

Without advertising, commercial projects in the Emirates are sinking in the golden sand. In a highly competitive environment, the one who invests in digital wins.

Advertising in Google and Meta gives up to 6x ROI if properly adjusted to local specifics. For the offline segment, billboards in areas with a high density of expats are effective.

Business profits in property, logistics and e-commerce can reach 25-40% per annum, especially when entering the Saudi and Qatari markets through exports to the United Arab Emirates.

Exports to UAE

The pros of doing business in the UAE are enhanced by the export factor. Demand for quality products, technology and services continues to grow.

Exports to the UAE are showing momentum, with foreign trade exceeding AED 1.1 trillion in 2023. The main destinations are food products, construction materials, IT solutions and pharmaceuticals.

Entering the GCC market opens the door for exporters to the GCC, a region with a total GDP of over $2 trillion. Registering a company within the country facilitates certification of goods and participation in tenders.

Market and revenue: what a growth strategy works with

The pros of business in the UAE are revealed through income and flexibility. The average income of small companies in logistics is 1.2-1.5 million AED per year, and in retail – 800,000 AED.

The market is not oversaturated but requires adaptation to local preferences. Template import of ideas does not work – adaptation wins here.

Survival formula: localised product + digital strategy + good PR packaging. Case: a cosmetics brand from South Korea entered the UAE market in 2022, increasing sales by 300% through a TikTok campaign and collaboration with local Influencers.

Evaluate the pros of doing business in UAE and make a decision!

As our review shows, the Emirates offers significant advantages for entrepreneurs: fast company registration in free zones (e.g. FZ-LLC in a matter of days), a transparent tax environment with a threshold for zero corporate tax rate (up to ~100,000 USD), and Dubai’s strategic position with access to markets in Asia, Europe and Africa, backed by excellent logistics via Jebel Ali port. Opportunities for growth through exports to GCC countries and high profit potential in sought-after niches such as logistics, real estate or e-commerce are real here, especially with a sound digital marketing strategy.

However, it is important to approach the decision without illusions. Consider significant start-up costs (opening a company in popular areas like DMCC requires significant investment), high competition requiring product customisation and sophisticated marketing, and the need to understand local business practices and adapt to climatic conditions that affect operating costs.