The UAE’s rapidly growing economy, favorable tax policies, and high standard of living continue to attract people from around the world — and Russians are no exception. In 2022, Russian nationals purchased a record volume of real estate in Dubai, with over 86,000 transactions registered. Interest in purchasing property in the Emirates remains strong in 2024. Some buyers aim to generate income through resale or rentals, while others invest in Dubai apartments or villas for personal use. Regardless of your goal, it’s crucial for every non-resident to understand the legal aspects of buying property in the UAE. Here’s what you need to know.
Freehold vs Leasehold
Foreigners can purchase real estate in the UAE only in designated areas known as Freehold or Leasehold zones.
In Freehold zones, citizens of any country can buy property outright, and later rent it out, gift it, pass it on by inheritance, or sell it. In Leasehold zones, foreigners are only allowed to lease property on a long-term basis — up to 99 years. So, if you plan to buy property from a private individual rather than a licensed developer, make sure to verify your right to buy in that specific location. It’s best to do this before making any deposit.
Some of the most popular Freehold areas in Dubai include Dubai Marina, Business Bay, Palm Jumeirah, Damac Hills, Dubailand, Arabian Ranches, Al Barari, Downtown Dubai, Dubai Creek Harbour, and Al Furjan.
Legal Transfer of Ownership
According to UAE law, all real estate transactions must go through the Dubai Land Department (DLD) and be registered in the Interim Register. Without this registration, the deal is considered legally invalid, even if you hold a signed sales contract or rental agreement. Even if a Freehold zone maintains its own internal register, this does not replace the requirement to register the transaction with the DLD.
To register a property sale or a rental agreement (Ejari), both parties must meet either in person at a DLD office or online through the official mobile app. For resale properties, both the buyer and seller must obtain a No Objection Certificate (NOC) from the developer, confirming that the transaction is permitted.
Contract Types
In the UAE, all real estate contracts are identified by Latin letters:
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Contract A – An agreement between the property owner and the real estate agent. It includes property details, seller information, agent’s commission, and the expected sale price.
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Contract B – An agreement between the buyer and the agent. It outlines the property, sale price, and agent commission.
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Contract I – An agreement between two agents representing the buyer and the seller.
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Contract F – The main agreement, also known as a Memorandum of Understanding (MOU). If Contracts A and B are already in place, the seller’s agent can consolidate the deal into a Contract F, which includes complete transaction details.
If any of these contracts are issued in two languages — for example, Arabic and English — it’s advisable to translate both versions and compare them for accuracy to avoid any misunderstandings or costly errors.
Primary vs. Secondary Market Transactions
The process of purchasing property in the UAE differs significantly between the primary and secondary markets.
For off-plan properties, buyers receive officially registered rights only after paying a 20% down payment. After that, a 4% registration fee must be paid to the Dubai Land Department. The next step is signing a sale agreement and receiving an OQOOD certificate, which grants ownership rights for the unfinished property. Upon project completion, the buyer pays the remaining balance and receives the Title Deed.
All resale transactions must be handled through licensed brokers or agencies. After reaching a verbal agreement, the buyer and seller sign three contracts (A, B, and F) at the Dubai Land Department. An NOC is also required from the developer. The final agreement is then notarized and registered.
Required Documents
To sign the main sale agreement (Contract F), the foreign buyer must provide:
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A copy of their passport
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A valid phone number
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Email address
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Power of attorney, if acting through a representative
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A deposit cheque for 10% of the property value
The seller must provide:
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Original passport
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Sale agreement or preliminary contract (for off-plan properties)
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Proof of ownership (for resale properties)
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NOC from the developer
Helpful Tips
Here are some important considerations before buying property in Dubai:
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Due diligence on the developer – Check reviews, completed projects, and resident satisfaction if you’re buying off-plan.
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Use of escrow accounts – This is strongly recommended for primary market purchases to reduce risks of construction delays or developer insolvency.
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Project delays are common – Developers can legally extend handover dates by up to one year.
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Check for full payment – Ensure the current owner has fully paid off the property if buying a resale unit.
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Ownership certificate timelines – For ready properties, the buyer typically receives the Title Deed within 7 days. However, for assignments of off-plan properties, the transfer process may take up to a month as the developer must reissue the contract to the new buyer.
