Dubai’s property market is one of the most regulated in the region, and that protects buyers, tenants and investors who know the rules. This guide covers the key laws for buying off-plan, buying ready property and renting in Dubai. Other emirates have their own real estate laws, so check the rules for the emirate where your property is.
The main laws and regulators
- Dubai Land Department (DLD) registers property and title. Its regulatory arm, RERA, licenses developers, brokers and projects.
- Law No. 7 of 2006 (Real Property Registration) allows foreigners to own freehold property in designated areas.
- Law No. 13 of 2008 (Interim Real Estate Register) covers off-plan sales. It was amended by Law No. 19 of 2017.
- Law No. 8 of 2007 requires off-plan payments to go into a project escrow account.
- Law No. 26 of 2007, as amended by Law No. 33 of 2008, governs landlord and tenant relationships.
- Law No. 6 of 2019 regulates jointly owned property, including service charges and owners’ associations.
Buying a ready property
- Check the title deed, any mortgage and outstanding service charges before you sign.
- Use a RERA-licensed broker and the standard DLD sale contract (Form F).
- Budget for the DLD transfer fee, typically 4% of the price, plus registration and trustee fees.
- Transfer of ownership takes place at a DLD registration trustee office.
Buying off-plan: escrow and default rules
Your payments for an off-plan unit must go into the project’s escrow account, not to the developer directly. If RERA cancels the project, the developer must refund all amounts paid.
If a buyer misses payments, the developer cannot simply keep the money. It must notify the DLD, which gives the buyer 30 days to pay or settle. After that, what the developer may do depends on how far construction has progressed:
- Over 80% complete: keep the contract and claim the balance, request a public auction, or terminate and deduct up to 40% of the unit value.
- 60%–80% complete: terminate and deduct up to 40% of the unit value.
- Under 60% complete: terminate and deduct up to 25% of the unit value.
- Not started, for reasons outside the developer’s control: terminate and deduct up to 30% of the amounts paid, refunding the rest within 60 days.
These procedures are mandatory, so steps taken outside them can be challenged. Buyers facing default should get advice before the 30-day window closes.
Renting: the rules landlords and tenants must follow
- Ejari registration. Every tenancy contract must be registered on Ejari. It is needed for utilities, visas and any rental dispute.
- Rent increases. Under Decree No. 43 of 2013, increases are capped according to how far the current rent is below the average market rent for similar units. A rent within 10% of the average cannot be increased. A rent more than 40% below the average can be increased by up to 20%. The DLD’s Smart Rental Index, launched in 2025, now sets these benchmarks building by building.
- 90 days’ notice. Either party who wants to change the terms at renewal, including the rent, must give at least 90 days’ notice before the contract ends.
- Eviction. A landlord can recover the property at the end of the lease only on specific legal grounds, such as selling it or moving in personally. This requires 12 months’ notice, served through a notary public or registered mail.
- Disputes are heard by the Rental Dispute Settlement Centre at the DLD.
Investor checklist
- Confirm the project is registered with RERA and has an escrow account.
- Read the sale and purchase agreement for handover dates, delay penalties and specifications.
- Keep proof of every payment made to the escrow account.
- If you buy to let, factor in Ejari, service charges and the rent-increase rules.
- Make a registered will so your property passes as you intend.
How we can help
Our real estate lawyers review purchase contracts, act in developer and buyer disputes, and represent landlords and tenants at the Rental Dispute Settlement Centre. Contact us before you sign, or as soon as a dispute arises.
