Investing in Dubai property from the UK – FAQs and cost breakdown

From the football-themed collaboration between Chelsea FC and Damac Properties to several British-inspired luxury property developments, such as LEOS Developments’ Knightsbridge and Kensington Gardens, Dubai’s developers are going all out to attract UK buyers. The recent weakening of the Dirham against the pound has further boosted interest from UK investors. As a result, UK investment in Dubai properties rose by 62% in Q2 2025, highlighting Dubai’s rise as an overseas property hotspot for portfolio diversification.

Why does Dubai stand out to UK investors?

With its population closing in on 4 million, Dubai has a growing workforce, with over 80% of its residents being expats. High rental demand and capital growth mean better average yields and long-term growth than most parts of the UK. Furthermore, the UAE’s favourable tax policies and long-term residency visas make investing in the Emirate all the more lucrative for overseas property buyers.

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How can UK buyers purchase property in Dubai?

Similar to the UK, it starts with finding the right property that meets your budget and needs through a reputable estate agent, who will then guide you through the entire process with ease. This includes making an offer to the developer/seller, paying the deposit, signing the contract and completing the property transfer.

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What financing options are available in Dubai?

Most developers in Dubai offer flexible payment plans, making it easy to buy a property. For completed projects, investors can also seek mortgages from banks and lenders in the UAE. Different lenders may have different eligibility criteria and payment terms, so check which best suits your situation.

Can UK investors get mortgages from UAE banks?

Most UAE banks give mortgages on completed homes or the percentage that is due on handover for off plan properties. Investors from the UK and other countries buying property in Dubai can borrow up to 60% of the property value after paying a deposit of 40% either in one go or through a flexible plan offered by the developer.

What are the terms for the interest rate, repayment, and mortgage duration in Dubai?

You can get fixed or variable-rate mortgages to purchase a property in Dubai. The rates are usually between 4.5% and 6.5%. The borrower can have up to 25 years to pay back the loan, depending on their age, salary, and other financial factors. Connecting with a reliable mortgage broker in Dubai is the best way for UK investors to acquire the finest financing.

What are the service charges to own a home in Dubai?

Dubai property owners have to pay yearly service fees for things like maintenance, security, and upkeep, as well as for the kind, size, and amenities of the property. The average service fee for regular buildings is AED 10 to 15 per square foot. For high-end branded complexes and beachfront homes, it can go up to AED 50 or more.

Do developers in Dubai offer any flexible payment plans?

Many developers provide flexible payment options to make it easier to buy a property, especially for non-resident buyers who want to avoid bank mortgages and save on interest payments.

50/50 and 40/60 payments: Buyers can break down the total investment over a set number of smaller instalments tied to the construction and handover timelines.

1% monthly payments: Some developers have a special plan that allows customers to pay only 1% of the home’s total worth each month in easy instalments, which could exceed to several years after the property is handed over.

Let’s take an example of a Dubai property worth £250,000 (around AED 1.15M), a 1% instalment would mean the customer pays £2,500 straight to the developer every month. Most developers offer this plan with no interest, but buyers should always read the terms and conditions of the sale.

Are there any taxes or registration fees applied when buying?

While there is no stamp duty, council tax or annual property tax in Dubai, buyers have to pay a registration fee of 4% (of property price) to Dubai Land Development (DLD), along with a transfer fee of AED 4,000 (£830) + 5% VAT. Apart from these, buyers should also budget for agent and mortgage registration fees when planning a purchase.

How profitable is it to rent a property in Dubai as a UK landlord?

Dubai’s growing workforce of expat professionals, combined with its business, tourism and lifestyle appeal, makes it a sought-after destination to live and rent. Popular residential areas like Downtown Dubai, Jumeirah Village Circle, Business Bay and Dubai South can offer attractive yields of 7% to 9%.

What should UK investors know about letting a property in Dubai?

Like the UK, the UAE also has a highly regulated rental property market, with the Real Estate Regulatory Authority (RERA) and DLD overseeing all aspects of property lettings and management. A completely digitised process, renting a property in Dubai is safe and easy with an online Ejari (contract registration) process, Smart Rental Index for fair pricing and a dedicated Rental Dispute Settlement Centre.

Landlords should also be aware of their responsibilities regarding maintenance and safety of their rental properties, which a management company can handle on their behalf.

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Cost breakdown for a Dubai property worth £250,000

Booking Fee at 2% = £5,000

Deposit at 25% – 2% Booking Fee (23%) = £57,500

Registration and agent fees

DLD registration fees at 4% = £10,000

Agent fees at 2% = £5,000 (only for ready properties)

Oqood registration up to AED 5,000 (can be less) = £1,050 (only for registering off-plan property purchases)

Registration and agent fees in Dubai are subject to the status of the property being ready or off-plan*

Admin and registration fees

Trustee fee: £400

Conveyancing/legal: £800 – £1,200

Estimated total = £1,300

Service charges

Considering the size of the property is 600 sq ft, and the service charge is AED 15/sq ft, the annual service charge = AED 9,000 (£2,000 approx)

Developer payment plan for off-plan property

10% deposit payment at booking = £25,000

15% payment during construction = £37,500

Balance 80% paid at 1% per month over 80 months (2,500 x 80) = £200,000

Total initial investment value

As an investor, the total upfront costs at the start will include the deposit, registration, agent and legal fees.

£57,500 + £15,000 + £1,300 = £73,800

Estimated rental income

8% gross yield for a one-bed apartment costing £250,000 = £20,000

The net yield after deducting the service charge is £18,000 = 7.2%

Should you consider investing in a Dubai property from the UK?

After breaking down the initial investment value against the potential returns from the example provided, the investor can recover the initial investment (approx 30% of the property value) in just over four years. From a cash flow perspective, such a strong return on investment would be considered lucrative by financial advisors in most parts of the world. The added security, political stability, and growth indicators, combined with favourable currency exchange rates, make it all the more attractive to invest in the most popular Emirate from the UK.

Benham and Reeves bring its global reputation and London legacy of over 65 years to the Dubai and UAE property markets. Whether you are buying, selling, or successfully letting and managing your Dubai home, we offer a one-stop service to make the entire investment journey seamless and easy. Check out the latest properties for sale in Dubai.

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