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Market research

United Arab Emirates

Focus: Dubai. Transactional UAE path available below.

Foreign ownership

Freehold ownership permitted for all nationalities in designated freehold areas. Dubai has 60+ designated freehold zones including Downtown Dubai, Dubai Marina, Business Bay, JVC, Dubai Hills Estate and Palm Jumeirah. No nationality restrictions in these zones; leasehold applies elsewhere.as of 2026-07 · source

DLD transfer fee

4%as of 2026-07 · sourceLegally splittable 2% buyer / 2% seller, but Dubai market convention places the full 4% on the buyer in almost all resale transactions. Rate unchanged since a 2013 DLD circular.

Agency commission

2% + 5% VAT (effective 2.1%)as of 2026-02 · sourceSecondary/resale market only. Off-plan purchases direct from developers typically carry ZERO buyer commission — the developer pays the agency. This is a genuine 2%+ saving on off-plan.

Trustee, title deed and admin fees

AED 4,200–5,500as of 2026-05 · sourceTrustee office fee AED 4,000 (+5% VAT) for properties at or above AED 500,000; AED 2,000 below. Plus title deed AED 250, property map AED 250, knowledge/innovation fees AED 20.

Mortgage registration (if financed)

0.25% of loan + AED 290as of 2026-06 · source

Total transaction cost

7–10% of purchase price (ready property); 4–6% (off-plan)as of 2026-07 · sourceCash purchases sit nearer 7–8%; mortgaged purchases 8–10%. Off-plan is materially cheaper because there is no buyer agency commission.

Transaction costs cannot be financed

Since a UAE Central Bank directive effective February 2025, banks may NOT roll transaction costs into the mortgage. DLD fees, agency commission, trustee and admin charges must all be paid in cash upfront. A buyer needs roughly 25–30% of the purchase price in liquid cash for a mortgaged ready-property purchase (20% down payment plus 7–10% fees), not 20%.as of 2026-03 · source

Gross yield range

5.5%–8%as of 2026-07 · sourceDubai apartments; market-wide apartment average sits around 6.5–7% gross. Villas run 1.5–3 points lower (roughly 4.5–6%). Mid-market communities (JVC, Arjan, Dubai Silicon Oasis, Discovery Gardens) reach 7.5–9.5% gross; prime districts (Downtown, Palm Jumeirah) sit at 4–6% by design — those are capital-preservation plays, not income plays.

Net yield range

4.5%–5.5%as of 2026-07 · sourceNet typically lands 1.5–2.5 percentage points below gross after service charges, management, maintenance and vacancy. Service charges are the single largest deduction and the most under-modelled cost: AED 10–32 per sq ft annually for apartments. Always obtain the building-specific figure before purchase, not the community average.

Yield data disagreement

Sources disagree meaningfully on the UAE headline figure. Global Property Guide put the UAE-wide average gross yield at 4.94% in Q2 2026 (down from 5.45% in Q4 2025), while Dubai-specific sources (Property Finder, Engel & Völkers) report 6.7–7.4%. The gap is real: the UAE blended average includes lower-yielding emirates, and Dubai runs above it. Use Dubai-specific figures for Dubai decisions.

as of 2026-05 · source

Rental income tax

Noneas of 2026-05 · sourceNo personal income tax on rental earnings for individuals. A 9% UAE corporate tax may apply to net rental income above AED 375,000 where property is held in a corporate structure. Residential rentals are VAT-exempt; 5% VAT applies to commercial property.

Capital gains tax

Noneas of 2026-06 · sourceNo capital gains tax on residential property for individuals.

Annual property tax

Noneas of 2026-03 · sourceNo annual property tax. Owners do pay service charges (AED 10–32/sq ft for apartments) and a municipality housing fee of 5% of annual rental value, but these are not property taxes.

Residency pathway

Golden Visa — 10-year renewable residency from AED 2,000,000 property investmentas of 2026-05 · source

The AED 2M threshold survived the April 2026 rule changes and remains in force. Key 2026 changes: the previous requirement to have paid 50% (or AED 1M) upfront was removed in February 2026 — qualification is now based on the full DLD-certified property value regardless of mortgage status, provided the lending bank issues a No-Objection Certificate. Off-plan units from RERA-approved developers qualify. Up to three properties can be combined to reach the threshold. Property must be in a designated freehold zone. No minimum stay requirement — residency survives absence beyond 180 days. Holders can sponsor spouse, children of any age, and parents. A separate 2-year property investor visa exists with no minimum value for sole owners following the April 2026 reforms — do not confuse the two.

Non-resident mortgage

Yes — typically 50–75% LTVas of 2026-06 · sourceNon-resident mortgage rates in 2026 are typically 6.5–8.5%, variable and tracked to EIBOR. Underwrite carefully: a 60% LTV mortgage at 7.5% against an asset yielding 6% gross can produce negative net cash flow in the early years. That is viable only as a capital-appreciation strategy, not an income one.

Setup timeline

Ready property: typically 4–6 weeks to transfer. Golden Visa: roughly 5 working days end-to-end under the unified GDRFA–DLD portal launched 15 April 2026, assuming a clean file; practitioners report 5–7 weeks more realistically where documentation is incomplete.as of 2026-06 · source

Market conditions

Cooling from an exceptional run, not collapsingas of 2026-05 · source

ValuStrat recorded the first quarterly residential price decline since 2020 in Q1 2026, following a regional security disruption in late February and March; activity rebounded in April. CBRE reported rental growth easing to roughly 4.1% year-on-year in Q1 2026 as new supply approached. The practical effect for buyers: more negotiating room on agency commission, developer incentives and mortgage fees than during the 2024–25 boom.

Key risks

Supply concentration and absorption risk

A significant delivery wave is scheduled for 2026–2027. Business Bay alone has reported 15,000+ new units due. In oversupplied pockets, tower selection now matters more than neighbourhood selection — a good unit in an average area can outperform a weak unit in a famous one.

Service charges are the most under-modelled cost

At AED 10–32/sq ft annually, service charges can consume 8–15% of gross rent and are set by building management, not negotiated by the landlord. They are the primary reason an advertised 8.5% gross yield becomes a 5.5–6.5% net. Verify the building-specific figure on the DLD index before buying.

Off-plan delivery risk

Off-plan carries lower transaction costs but exposes the buyer to developer delivery, specification and handover-timing risk. Escrow protections exist under RERA but do not eliminate delay risk.

Headline yields are advertised gross, not net

The 9–10% gross figures marketed in fringe communities are statistically real but operationally unstable — they assume continuous occupancy in markets with rising supply and high tenant churn. Underwriting at 100% occupancy is the most common modelling error; a realistic vacancy allowance is 5–8% of annual rent in prime areas and 8–12% in high-churn communities.

UAE enquiry

Speak to our RERA-licensed Dubai team

This form routes to CoreSpaces Realty LLC in Dubai. We can advise on UAE property only — not on transactions in other markets covered on this site.