Checklist for Foreign Investors Before Buying Property in UAE (2026 Guide)
Buying property in the UAE can be a smart investment — especially in cities like Dubai and Abu Dhabi. But before signing any contract, foreign investors must follow a proper checklist to avoid legal or financial risks.
Use this complete guide to protect your investment.
1. Confirm Freehold Eligibility
Not all areas allow foreign ownership.
✔ Check if the property is in a designated freehold area
✔ Verify ownership rights (freehold vs leasehold)
✔ Confirm title registration is allowed under your nationality
Always confirm with the developer or agent.
2. Verify Developer & Project Approval
Before paying booking fees:
✔ Check if the developer is registered with Dubai Land Department
✔ Confirm project approval from Real Estate Regulatory Agency
✔ For Abu Dhabi, verify through the Department of Municipalities
Never invest in unregistered off-plan projects.
3. Calculate Total Investment Cost
Do not focus only on property price.
Include:
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4% DLD transfer fee
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2% agency commission
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Service charges (annual)
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Mortgage registration fee (if applicable)
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Utility deposits
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Property insurance
Hidden costs can add 6–8% extra to the property value.
4. Check Mortgage Eligibility (If Financing)
If you are taking a loan:
✔ Confirm down payment requirement (usually 20–25%)
✔ Compare bank interest rates
✔ Understand early settlement penalties
✔ Review life insurance & property insurance conditions
Always get pre-approval before committing.
5. Review the Sales Agreement Carefully
For ready properties:
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Review Memorandum of Understanding (MOU)
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Confirm payment schedule
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Check penalties for late payment
For off-plan:
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Review Sales & Purchase Agreement (SPA)
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Confirm escrow account details
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Check handover timeline
Consider hiring a property lawyer for contract review.
6. Confirm Title Deed & Ownership
For ready property:
✔ Verify seller owns the property
✔ Confirm no outstanding service charges
✔ Ensure no mortgage liability remains
Ownership must be transferred officially at the Land Department.
7. Check Service Charges & Community Fees
Ask for:
✔ Annual service charge per sqft
✔ Maintenance history
✔ Upcoming major repairs
✔ Community fee breakdown
High service charges reduce rental returns.
8. Study Rental Yield & Market Trends
Before investing for rental income:
✔ Research average rental yields in the area
✔ Check vacancy rates
✔ Compare price trends over last 3–5 years
✔ Evaluate demand for short-term vs long-term rental
Popular areas in Dubai often yield 6–9% annually.
9. Check Residency Visa Eligibility
Investment may qualify you for residency:
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AED 750,000+ → 2-year investor visa
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AED 2 million+ → 10-year Golden Visa
Confirm current immigration rules before applying.
10. Understand Inheritance & Will Registration
If something happens to you:
✔ Register a will in UAE courts
✔ Consider DIFC Wills Service
✔ Understand how inheritance laws apply to foreign nationals
Without a will, assets may be frozen temporarily.
11. Inspect Property Condition
For ready units:
✔ Conduct professional inspection
✔ Check plumbing & electrical systems
✔ Verify AC functionality
✔ Confirm parking allocation
Never skip physical inspection.
12. Keep All Official Documentation
Maintain copies of:
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Sale agreement
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Title deed
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Payment receipts
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Mortgage documents
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Service charge invoices
Store both digital and physical copies.
