United Arab Emirates — Property

The freehold map and the Golden Visa pivot

Foreign ownership in the UAE is geography-locked. Each emirate publishes a list of designated freeholdfreeholdIn the UAE, freehold is full foreign ownership available in designated zones per emirate (broad in Dubai, selective in Abu Dhabi, 100-year leasehold in Sharjah for non-Arab nationals). areas where non-GCC nationals may hold a title deed; outside those zones the land remains restricted. Dubai opened freehold first (Decree 3 of 2006), Abu Dhabi expanded its zones in 2019 and again in 2023, Sharjah pivoted in 2022 to a 100-year leasehold model for non-Arab foreigners, and Ras Al Khaimah, Ajman, Umm Al Quwain and Fujairah trail behind with smaller but growing maps.

The structural pivot for a relocation buyer is not the asset itself but the residency it can unlock. Property at or above 2000000 AED (around $ 545,000) triggers eligibility for the 10-year Golden VisaGolden VisaThe UAE 10-year residency, renewable. Routes: real estate from AED 2,000,000, investor with AED 2M capital, talent (scientists, doctors, top students, creatives, athletes), pensioner aged 55+ (AED 1M property or savings or AED 20K/month pension). Self-sponsored, employer-independent. for the owner, spouse and direct children. Off-plan units count once at least 50 % of the price has been paid; mortgaged units count when the owner's equity (cash down) reaches AED 2 million. That single threshold reshapes how international buyers think about Dubai: not as a yield play first, but as a residency vehicle that happens to throw off a yield.

The honest caveat: Dubai property is a cycle, not a one-way line. The market dropped sharply in 2009-2010 and again in 2014-2020. Between 2022 and 2025 prime stock added 30-50 % and Abu Dhabi prime added 20-35 %. Anyone underwriting an asset on the assumption that 2022-2025 returns continue is buying the top of a cycle. The Golden Visa floor moves the calculation: even in a flat market the residency yield is real.

Freehold by emirate

The seven emirates run seven property regimes under one federal framework. The differences are not cosmetic.

Dubai

The broadest map. Roughly 50 designated freehold areas covering the most familiar names: Dubai Marina, JBR, JLT, Palm Jumeirah, Downtown Dubai, Business Bay, Arabian Ranches, Emirates Hills, Springs, Meadows, JVC, JVT, Dubai Hills Estate, MBR City, Damac Hills, Tilal Al Ghaf. Mirdif is selective. New zones get added every cycle. The Dubai Land Department (DLDDLDThe Dubai Land Department. Registers real estate transactions, issues the title deed, and runs the Oqood off-plan registry. The 4 % transfer fee is paid on registration.) is the single registry; the regulator is RERARERADubai's Real Estate Regulatory Agency. Maintains the RERA Rental Index (rent-increase caps), supervises developer escrow accounts, and licenses brokers., a department within DLD.

Abu Dhabi

Selective freehold in five investment zones for non-GCC nationals: Saadiyat Island, Al Reem Island, Yas Island, Al Raha Beach, Al Maryah Island. Masdar City carries partial freehold. The 2019 reform that opened freehold beyond Emiratis triggered a slow expansion; another round of new zones landed in 2023. Outside the investment zones, foreigners can hold long-leasehold (50-99 years) but not freehold.

Sharjah

The 2022 reform introduced 100-year leasehold for non-Arab foreigners in select districts: Aljada, Tilal City, Maryam Island, Al Khan. Full freehold remains restricted to GCC and selected Arab nationals. The 100-year structure is closer to freehold than to a standard lease: it transfers, mortgages and inherits like ownership. Yields here are higher than Dubai, capital appreciation is lower, and the alcohol-free social setting filters the tenant pool.

Ras Al Khaimah and the Northern Emirates

Ras Al Khaimah is the only Northern Emirate building an active freehold market: Al Marjan Island, Mina Al Arab, Bab Al Bahr, Pacific. The 2024 Wynn Al Marjan announcement pushed both supply and price; the casino-resort itself opens in 2027. Ajman, Umm Al Quwain and Fujairah have small freehold pockets and limited buyer demand. The trade-off across the Northern Emirates is the same: lower entry, thinner services, fewer schools, modest transport.

What closing really costs

A UAE deal pays most of its bill on the day of transfer, at the DLD trustee office. The numbers are public, fixed and easy to verify on the DLD calculator. The total all-in cost runs around 6-7 % on top of the contract price for a cash resale; a mortgage adds another 0.5-1 %.

State and registry

• DLDDLDThe Dubai Land Department. Registers real estate transactions, issues the title deed, and runs the Oqood off-plan registry. The 4 % transfer fee is paid on registration. transfer fee: 4 % of the contract price. Convention says split 2 % buyer and 2 % seller; in practice the buyer almost always pays the full 4 %. Computed on the higher of contract price or DLD valuation.
• DLD admin fee: AED 580. Title deed issuance: AED 250.
• NOCNOCA No Objection Certificate from the developer, confirming no objection to a sale or transfer of property. Mandatory for DLD re-registration; typical cost AED 500-5,000. (No Objection Certificate) from the developer: AED 500-5 000. Confirms service charges are paid and the unit is clear to transfer.
• Trustee office fee: AED 4 000 for property under AED 500 000, AED 4 200 above. Paid at the registry on transfer day.

Agency

Agency commission in the UAE runs 2 % of the price, paid by the buyer, plus 5 % VAT on the commission. Unlike Spain or Portugal where the seller pays, in Dubai the buyer signs the buyer-side agreement (Form B) and the fee is theirs. There is no double-commission practice; the agent represents one side of the deal.

Mortgage costs

• Mortgage registration at the DLD: 25 % of the loan amount plus AED 290 admin.
• Bank valuation: AED 2 500-4 000, paid to a panel valuer.
• Processing fee: 0.5-1 % of the loan amount, set by the lender.
• Life insurance: typically 0.3-0.6 % of the loan per year, mandatory with the bank as beneficiary.

A worked example, AED 2 000 000 cash resale: DLD 4 % = AED 80 000, agency 2 % + VAT = AED 42 000, NOC AED 1 500, admin and trustee AED 5 200, title deed AED 250. Total around AED 129 000 on top of price, or 6.5 % of the deal. Add a 75 % LTV mortgage (AED 1 500 000 loan) and the bill picks up another AED 4 080 of registration, AED 3 500 of valuation, AED 12 000 of processing, plus AED 6 000-8 000 of first-year life insurance. The all-in lands around 8 %.

Off-plan is different. The 4 % DLD applies once, at the time of OqoodOqoodDubai's off-plan registry, maintained by DLD. Records the buyer's claim on an under-construction unit until the title deed is issued at handover. registration (the developer holds the funds in a RERARERADubai's Real Estate Regulatory Agency. Maintains the RERA Rental Index (rent-increase caps), supervises developer escrow accounts, and licenses brokers. trust account until handover). Agency commission on off-plan is paid by the developer to the agent, so the buyer often does not see a separate 2 % line. Closing costs on a standard off-plan deal land closer to 4-5 % of price.

Mortgages: LTV caps, EIBOR, DBR

The Central Bank of the UAE caps mortgage lending by buyer profile, property tier and purchase status. Expat first-home LTV is 75 % for property up to AED 5 000 000, dropping to 65 % above. Second home for an expat: 60 %. Off-plan, any buyer: 50 %. UAE nationals get higher caps (80 % first home, 65 % second).

Tenure and age

Maximum tenure is 25 yr. The borrower must be under 65 (salaried) or 70 (self-employed) at maturity, which compresses the tenure for older buyers. Debt Burden Ratio (DBR) is capped at 50 % of monthly income across all debt servicing (mortgage, car, cards, personal loans). Pre-approval typically takes 30-60 days.

Rates in Q2 2026

Variable rates link to EIBOREIBORThe Emirates Interbank Offered Rate — the UAE's benchmark interbank rate. Most expat mortgages are 3- or 6-month-EIBOR-linked plus the bank's margin. (1M, 3M or 6M) plus a bank margin of 1.5-2.5 %, putting the effective rate at 4.5 %-5.5 %. Fixed-rate products (3 or 5 years before reverting to variable) sit at 4.75-5.8 %. The Federal Reserve cycle drives EIBOR via the AED-USD peg, so anyone underwriting a 25-year mortgage on today's rates is taking a duration view on the US dollar.

What the bank asks for

• Emirates ID and residency visa, or non-resident package documentation (some banks lend to non-residents at 50 % LTV).
• Salary certificate plus 6 months of bank statements, or 2-3 years of audited accounts if self-employed.
• Liability letter from existing banks showing other debt commitments.
• Property valuation by a panel valuer (the bank chooses).
• Down payment plus all closing costs in a UAE bank account before signing.

Main lenders for expats: Emirates NBD, Mashreq, ADCB, FAB, HSBC, Standard Chartered. HSBC and Standard Chartered tend to be more selective on income source; Emirates NBD and Mashreq offer the deepest expat product set. A mortgage broker (Mortgage Finder, Holo, Better Homes) usually pays for itself through a 0.2-0.5 % rate improvement and a faster approval.

Off-plan: RERA escrow, payment plans, no cooling-off

Off-plan is roughly half of Dubai's transactional volume. The legal framework is tighter than the reputation suggests: every developer must hold buyer funds in a RERARERADubai's Real Estate Regulatory Agency. Maintains the RERA Rental Index (rent-increase caps), supervises developer escrow accounts, and licenses brokers. trust account, released against verified construction milestones. The buyer signs a Sales and Purchase Agreement (SPA) and the property is registered on OqoodOqoodDubai's off-plan registry, maintained by DLD. Records the buyer's claim on an under-construction unit until the title deed is issued at handover., the off-plan registry, which replaces the title deed until handover. At handover the unit migrates to a standard DLD title deed.

Payment plans

The standard payment plan is 40/60: 40 % during construction in milestone tranches, 60 % at handover. Many developers offer 30/70 or 20/80 to attract investors, and "1 % monthly" plans on smaller units (a marketing label for a long instalment schedule). Post-handover payment plans (PHPP) extend payments 2-5 years after handover, useful for buyers who plan to fund the back end from rental income.

Mortgages on off-plan

Bank financing on off-plan is capped at 50 % LTV, which means the buyer needs 50 % cash. Most off-plan deals are funded directly from the buyer to the developer (no mortgage) until handover, then the buyer takes a mortgage on the completed unit. Some banks now offer a "construction-linked mortgage" releasing in tranches against milestones, but the terms are tighter and the buyer pool is small.

What is missing

The UAE has no statutory cooling-off period for off-plan. Once the SPA is signed and the booking deposit is paid (5-10 % at signing, non-refundable), the buyer is committed. Compare this to the UK (14 days), Spain (7-14 days for new build in some autonomous communities) or France (10 days). Delivery delay is the other risk: even with the RERA escrow, completion runs 6-18 months behind the brochure date in roughly half of projects. Pick the developer (Emaar, Damac, Nakheel, Sobha, Dubai Properties, Aldar in AD) and the project's funding profile before the unit.

Holding costs: service charges, district cooling

There is no annual property tax in any emirate. 0 %. The owner's annual bill is built from four lines instead: service charges, district cooling, DEWA (utilities) and the municipality housing fee.

• Service charges: AED 10-40 per square foot per year for apartments. Set by the building's management company and approved by RERA. Marina towers run AED 20-30 per sqft, mid-tier JVC sits at AED 12-18, premium Palm villas can hit AED 40. A 1 000 sqft apartment in JLT therefore carries AED 15 000-18 000 per year just in service charges.
• Community fee for villas: AED 4-10 per sqft per year. Lower per sqft than apartments, but a 4 000 sqft villa still runs AED 24 000-40 000 per year.
• District cooling: most apartment buildings use EmpowerEmpowerThe largest district-cooling provider in Dubai. Serves Marina, JLT, Business Bay, and Downtown; the chiller bill is separate from DEWA and scales with floor area and consumption. (in Dubai) or TabreedTabreedA major UAE district-cooling provider. Residents pay a separate chiller bill on top of DEWA; tariff is measured in AED per refrigeration ton (RT). (federal). Billed at AED 0.30-0.80 per refrigeration ton per hour, separate from DEWA. A typical 2-bedroom apartment runs AED 8 000-15 000 per year on chiller, summer-heavy.
• DEWA (Dubai Electricity and Water Authority): AED 400-1 200 per month for a 2-bedroom apartment, weighted heavily to AC season.
• Municipality housing fee: 5 % of annual rental value. Charged on the DEWA bill, paid by the tenant in let units, imputed against the owner for owner-occupied.

Service charges are the line that surprises foreign buyers. A 1 200 sqft apartment in Downtown can carry AED 25-30 per sqft, which means AED 30 000-36 000 per year. Plus chiller AED 10 000-15 000 plus DEWA AED 8 000-12 000 plus building insurance AED 1 500-3 000. Total annual carry: AED 50 000-65 000, before factoring in any tenant. Compare to a similar New York apartment paying USD 12 000-20 000 in annual property tax alone: the UAE comes out lighter, but only because the service-charge structure substitutes for the tax.

Rental side: Ejari, rent caps, yields

Long-term tenancy in Dubai is registered through EjariEjariDubai's tenancy registry. Registering a lease through Ejari is mandatory; the issued contract number is required to activate DEWA utilities, enrol a child at a local school, or register a car with RTA. Fee AED 220., the rental contract registry administered by RERA. Abu Dhabi uses Tawtheeq, Sharjah uses Tasdeeq. Registration is mandatory and the system is the single source of truth for tenancy disputes. Eviction for non-renewal requires a 12-month notarised notice; eviction for cause (non-payment, illegal use, owner sale) is faster but still channelled through the Rental Dispute Centre.

Rent caps

The Dubai RERARERADubai's Real Estate Regulatory Agency. Maintains the RERA Rental Index (rent-increase caps), supervises developer escrow accounts, and licenses brokers. Rental Index sets the maximum annual increase by tying it to the gap between current rent and market median. If the current rent is at or above the market index, the landlord cannot raise it on renewal. If it sits 10-20 % below, the cap is 5 %; 20-30 % below, 10 %; 30-40 % below, 15 %; more than 40 % below, 20 %. Any rent increase requires 90 days notice and a written rationale. The calculator is public on the Dubai REST app.

Holiday lets

Short-term lets (Airbnb, Booking) in Dubai require a Dubai Department of Economy and Tourism (DET, formerly DTCM) holiday-home licence. Apartment licence fee: AED 1 520. Plus 10 % Tourism Dirham per night, billed to the guest but remitted by the host. Licensing in Dubai is open and active; in Abu Dhabi it is more restrictive. Realistic net yields on a managed short-term let after platform fees, cleaning, utilities and the licence run 6-10 % gross translating to 4-7 % net, sensitive to occupancy and season.

Yields by segment

Gross annual yields, apartments: 6 %-9 %. Villas: 4-6 %. Off-plan handovers sometimes 8-10 % in the first year (lower base, market-rate rent). Sharjah and Ras Al Khaimah run higher gross yields (7-9 %) because capital values are lower; Abu Dhabi prime sits at 5-6 %. The widget below shows the spread across six common segments.

How property unlocks the Golden Visa

Property at or above AED 2000000 (around USD $ 545,000) triggers eligibility for the 10-year Golden VisaGolden VisaThe UAE 10-year residency, renewable. Routes: real estate from AED 2,000,000, investor with AED 2M capital, talent (scientists, doctors, top students, creatives, athletes), pensioner aged 55+ (AED 1M property or savings or AED 20K/month pension). Self-sponsored, employer-independent. under the real-estate route. The visa covers the owner, spouse and direct children. Three structural variations matter:

• Single unit at or above AED 2M: straightforward. Title deed in the applicant's name (or 50 % spousal joint ownership), held free and clear.
• Multiple units totalling AED 2M: accepted, provided the aggregate value at current DLD valuation meets the floor.
• Mortgaged property: counts when the applicant's equity (cash paid down) reaches AED 2M. A 75 % LTV mortgage on an AED 8M property where the buyer paid AED 2M cash qualifies; a 75 % LTV on an AED 2M property where the buyer paid AED 500 000 does not.
• Off-plan: eligible once at least 50 % of the AED 2M+ price has been paid to the developer, with the project under construction or completed.

Application is filed through ICP (the federal Identity and Citizenship Authority) or GDRFA Dubai for Dubai-based applicants. Processing runs 15-30 days for clean files. The visa renews on the same property; if the property is sold, the visa is cancelled at the next renewal unless replaced by another qualifying asset or visa track. The Golden Visa is the durable answer to the UAE's "no citizenship" structure: a 10-year residency that travels with the property rather than with an employer.

Where to read next

There is no personal income tax on UAE rental income, no capital gains tax on a resale, and no inheritance tax. Where it gets specific: if the property is held through a UAE company rather than personally, corporate tax of 9 % applies to profit above AED 375 000 (rental net of expenses). The Taxes chapter covers that calculation, free-zone qualifying income, and the UAE-Russia DTT renegotiated in 2025. The Visa chapter expands the Golden Visa application paths, including the talent, investor and pensioner routes that do not require property ownership.

Frequently asked

What does a UAE deal really cost to close?▾

On a standard Dubai resale: DLDDLDThe Dubai Land Department. Registers real estate transactions, issues the title deed, and runs the Oqood off-plan registry. The 4 % transfer fee is paid on registration. transfer fee 4 %, agency commission 2 % plus 5 % VAT, developer NOC AED 500-5 000, trustee office fee AED 4 000-4 200, title deed AED 250, DLD admin AED 580. All-in around 6-7 % on top of contract price for a cash deal. A mortgage adds 25 % of the loan amount in registration plus AED 2 500-4 000 of bank valuation plus 0.5-1 % processing fee. Off-plan closes lighter, closer to 4-5 %, because agency commission is paid by the developer.

Can a foreigner buy property in the UAE?▾

Yes, in designated freeholdfreeholdIn the UAE, freehold is full foreign ownership available in designated zones per emirate (broad in Dubai, selective in Abu Dhabi, 100-year leasehold in Sharjah for non-Arab nationals). areas. Dubai has the broadest map (around 50 zones including Marina, JLT, Downtown, Palm, Arabian Ranches, JVC, Dubai Hills). Abu Dhabi has selective freehold (Saadiyat, Al Reem, Yas, Al Raha Beach, Al Maryah). Sharjah introduced 100-year leasehold for non-Arab foreigners in 2022 in Aljada, Tilal City, Maryam Island and Al Khan. Ras Al Khaimah has Al Marjan Island and Mina Al Arab; Ajman, Umm Al Quwain and Fujairah have limited but growing freehold. Outside these zones, foreign ownership is restricted to long-leasehold (50-99 years).

How much can an expat borrow on a UAE mortgage?▾

Central Bank caps: first home up to AED 5 000 000, LTV 75 %; above AED 5 000 000, 65 %. Second home: 60 %. Off-plan: 50 %. Maximum tenure 25 yr, borrower under 65 (salaried) or 70 (self-employed) at maturity. Debt Burden Ratio capped at 50 % of monthly income. Q2 2026 rates: variable EIBOR-linked 4.5 %-5.5 %, fixed 3-5 year 4.75-5.8 %. Main lenders: Emirates NBD, Mashreq, ADCB, FAB, HSBC, Standard Chartered.

Does property unlock the Golden Visa?▾

Yes. Property at or above AED 2000000 (around USD $ 545,000) triggers 10-year Golden VisaGolden VisaThe UAE 10-year residency, renewable. Routes: real estate from AED 2,000,000, investor with AED 2M capital, talent (scientists, doctors, top students, creatives, athletes), pensioner aged 55+ (AED 1M property or savings or AED 20K/month pension). Self-sponsored, employer-independent. eligibility for the owner, spouse and direct children. Off-plan counts once at least 50 % of the AED 2M+ price has been paid. Mortgaged property counts when the applicant's equity (cash down) reaches AED 2M, regardless of total property value. Application via ICP or GDRFA Dubai, processing 15-30 days for clean files. The visa renews on the same asset; selling the property cancels the visa at the next renewal cycle unless a replacement is in place.

Is there an annual property tax?▾

No emirate levies an annual property tax on the owner. The Dubai municipality housing fee (5 % of annual rental value) sits on the DEWA bill and is paid by the tenant for let units, or imputed against owner-occupiers. The annual carry an owner actually pays sits in service charges (AED 10-40 per sqft for apartments, AED 4-10 for villa communities), district cooling (EmpowerEmpowerThe largest district-cooling provider in Dubai. Serves Marina, JLT, Business Bay, and Downtown; the chiller bill is separate from DEWA and scales with floor area and consumption. or TabreedTabreedA major UAE district-cooling provider. Residents pay a separate chiller bill on top of DEWA; tariff is measured in AED per refrigeration ton (RT)., billed by refrigeration ton), DEWA utilities and building insurance.

What are the rental yields I can expect?▾

Gross annual yields, apartments: 6 %-9 %. Villas: 4-6 %. Off-plan handovers sometimes 8-10 % in year one. By segment: Dubai Marina 1BR around 6.5 %, JLT 2BR 7-8 %, Downtown 1BR 5-6 %, JVC villa 4-5 %, Abu Dhabi Saadiyat 5-6 %, Sharjah Aljada 7-9 %. Net yield after service charges, agency rental fees (5 % of annual rent), management (10 % if let by a manager) and chiller typically runs 60-70 % of gross. Short-term lets in Dubai gross 8-12 %, net 5-7 % after platform fees and DET licensing.

Is there capital gains tax on sale?▾

No personal capital gains tax on a UAE property sale. The seller pays the agency commission if applicable; the buyer pays the 4 % DLD transfer fee again. No federal or emirate-level CGT, no inheritance tax, no estate tax. If the property is held through a UAE company rather than personally, the 9 % federal corporate tax applies to net rental income above AED 375 000 per year; sales gains within a corporate structure are also subject to the 9 %. Average holding period is 4 yr-7 yr years; flipping is common in hot off-plan zones.

Related chapters

• 🧮TaxesPIT rates, regimes, treaties
• 💶Cost of livingRent, groceries, services
• 🏦BankingAccounts, SWIFT, residency rules