The United Arab Emirates (UAE) continues to attract international attention for its vibrant lifestyle, modern infrastructure, and investor-friendly property laws. For foreigners, buying an apartment in the UAE has become an appealing option, whether for personal use or as a long-term investment. However, one of the most common questions asked is: how much does it actually cost to own a home in the Emirates?
Let’s break down the main cost components, areas to consider, and what you should expect when purchasing an apartment as a non-resident in the UAE.
Understanding the UAE Property Market
The UAE has a well-regulated real estate market, especially in cities like Dubai and Abu Dhabi. Thanks to progressive laws, foreigners can now purchase freehold properties in designated zones, giving them full ownership rights. This openness has led to a significant increase in international buyers looking for stable and profitable investments in the region.
Dubai, in particular, has become a leading hub for property investors. The Dubai real estate market is known for its diverse range of options—from luxury high-rises to more affordable mid-market apartments—all supported by world-class amenities and strong rental demand.
Average Price Range for Apartments
The cost of buying an apartment varies significantly depending on the city, location, property size, and whether it is off-plan or ready to move in.
In Dubai:
- A studio apartment typically starts from AED 450,000
- A one-bedroom unit ranges between AED 650,000 and AED 1.2 million
- Two-bedroom apartments may cost anywhere from AED 1 million to AED 2.5 million
In Abu Dhabi:
- Studio apartments start from around AED 400,000
- One-bedroom units generally fall between AED 600,000 and AED 1 million
- Larger units cost more depending on location and building facilities
For those looking to buy apartments in UAE, it is essential to research various emirates and neighbourhoods. Properties in central areas or with waterfront views will naturally command higher prices than those located further from commercial centres.
Additional Costs to Consider
When buying an apartment, it’s important to account for more than just the purchase price. Here are some common additional expenses:
- Dubai Land Department (DLD) Fees – Typically 4% of the property value
- Agency Commission – Around 2% of the property price
- No Objection Certificate (NOC) – Between AED 500 to AED 5,000 (for ready properties)
- Service Charges – Annual maintenance costs charged by developers or building management, ranging between AED 10 to AED 30 per square foot
- Mortgage Registration – If financing is involved, a fee of 0.25% of the loan amount is applicable
It’s wise to have a budget cushion of at least 7–8% of the purchase price to cover all these added expenses comfortably.
Off-Plan vs Ready Properties
Foreign buyers also need to decide whether to invest in off-plan properties (still under construction) or ready units. Off-plan apartments usually have lower entry prices and flexible payment plans, but they come with longer waiting periods and potential project delays.
On the other hand, ready apartments provide immediate occupancy or rental income but tend to be priced higher upfront.
Final Thoughts
Buying an apartment in the UAE is a viable and secure option for foreigners, thanks to well-structured regulations and a strong legal framework. The total cost varies based on property type, location, and associated fees, but with careful planning, it can be a rewarding long-term investment.
Whether you’re drawn by lifestyle perks or financial gains, entering the UAE property market requires proper research, financial preparation, and professional advice.
