The idea of "dead money" on rent hurts me. So even though we're committed to renting for our first year, I had to explore what buying looks like.
Here's the complete process.
The Fees You Need to Know
When you see a property price on Bayut, that's not the final number. Factor in:
| Fee | Amount | When You Pay |
|---|---|---|
| Agency fee | 2% | On purchase |
| Transfer fee (DLD) | 4% | At Dubai Land Department |
| Admin fee | Up to 4,000 AED | At Dubai Land Department |
| NOC fee | 500–5,000 AED | From developer |
Example: A 2,000,000 AED property actually costs ~2,130,000 AED with fees.
Mortgage Deposit
Unless you're a cash buyer, you'll need a mortgage.
Deposit required: 25% of property value (some lenders do 20%, but budget for 25%).
I'm not going to pretend to be a finance expert – interest rates and terms vary. But 25% is the safe benchmark.
Step 1: Find a Great Broker
This matters more than you think.
What to look for:
- Someone you get on with
- Doesn't rush you through the process
- Explains pros AND cons
- Builds a relationship, not just a transaction
"I spoke to someone back in November, explained I wouldn't be looking until Q2 or Q3. We stayed in contact. He's continually shared advice, jumped on Google Meets. That's the relationship I value."
Tip: Reach out 3-12 months before you plan to buy. Build the relationship early.
Step 2: Get Pre-Approved
If you're financing (not cash), you need pre-approval from a bank before viewing properties.
What your broker will collect:
- Pay slips
- Emirates ID
- Proof of employment
- Residency status documentation
The bank confirms your borrowing capacity and issues a pre-approval letter.
Validity: 60 days
Without this, sellers won't take you seriously. It proves you can actually afford to buy.
Step 3: Find Your Property
This is the part my wife enjoys. I just want to get on with stuff.
Use Bayut (bayut.com) to search within your pre-approved budget. Remember to factor in those extra fees.
Step 4: Make an Offer
To have the highest chance of acceptance:
- Put your offer in writing
- Include a 10% deposit check as a sign of commitment
- Attach copies of ID (passport, Emirates ID) for everyone going on the title deeds
The 10% shows you're serious. It makes your offer stand out.
Step 5: MOU (Memorandum of Understanding)
Also called Form F.
Once your offer is accepted, you sign the MOU. This is the formal agreement between buyer and seller.
At this stage:
- All documents signed
- 10% deposit check handed over
Step 6: Bank Valuation
If you're using finance, the bank needs to value the property before proceeding.
The seller also provides a statement showing any outstanding debt on the property that the buyer will pay off.
Step 7: NOC (No Objection Certificate)
This comes from the property developer.
The NOC confirms:
- All outstanding fees on the property are settled
- Service charges are paid in full
- No objections to the sale proceeding
Cost: 500–5,000 AED
The developer may also ask for a refundable deposit. You get this back once you present the new title deeds at their office after completion.
Step 8: Dubai Land Department (DLD)
The final stage. Head to the DLD to complete the transfer.
You'll pay:
- 4% transfer fee (write a check)
- Admin fee (max 4,000 AED)
Once formalities are completed, new title deeds are generated with you as the owner.
Step 9: Get Your Deposit Back
Remember that refundable deposit from the developer?
Take your new title deeds to the developer's office to claim it back.
The property is now yours.
Full Cost Breakdown Example
For a 2,000,000 AED property:
| Item | Amount (AED) |
|---|---|
| Property price | 2,000,000 |
| Agency fee (2%) | 40,000 |
| Transfer fee (4%) | 80,000 |
| Admin fee | 4,000 |
| NOC fee | ~2,500 |
| Total | ~2,126,500 |
Plus your 25% deposit: 500,000 AED upfront.
The Process Summary
- Set budget – Factor in all fees
- Find broker – Build relationship early
- Get pre-approved – Valid 60 days
- Find property – View and shortlist
- Make offer – Written, with 10% deposit check
- Sign MOU – Formal agreement
- Bank valuation – If financing
- Get NOC – From developer (500-5,000 AED)
- DLD transfer – Pay 4% + admin, get title deeds
- Claim deposit back – From developer
Why We're Still Renting First
Even knowing all this, we're renting for year one.
Why?
- Buying feels like a big commitment before we know we love it here
- Want to understand neighbourhoods properly first
- Need to know which schools work for the boys
- Gives us time to build relationships with brokers
But we're exploring. And when the time comes, we'll be ready.
Related Content
Buying vs renting is a personal choice. But at least now you know exactly what the buying process looks like. 🏠