Investing in Dubai Real Estate from France: Things to Know

Why French Nationals Are Investing in Dubai Real Estate

Dubai is attracting a growing number of French investors for several reasons:

Tax Advantages

Unlike France, where personal tax rates can exceed 40%, Dubai does not have an individual income tax. Additionally, Dubai does not impose capital gains tax or property tax, enabling investors to retain a greater portion of their rental income and achieve higher returns.

Competitive Prices

The average cost to buy real estate in Dubai is very competitve compared to major French cities, and almost half the price of Paris. For example, the cost to buy a city centre apartment is:

Attractive Rental Yields

The gross rental yields in Dubai typically range between 5% and 8%. This is an extremely attractive rental yield by global standards, with average rental yields in Paris of around 2% to 4%. 

Stable Currency

The UAE Dirham (AED) is pegged to the US dollar, offering stability that can be particularly attractive during fluctuations in the Euro.

Flexible Financing Options 

French investors benefit from accessible mortgage solutions when buying in Dubai. Mortgage rates in Dubai are often competitive compared to those in France, with non-resident buyers typically accessing rates between 4% and 5%. Financing up to 60% of the property value is possible for non-residents (80% for Dubai residents), making it easier to invest without needing to commit full capital upfront.

Growing French Community

In addition to the above points, French-speaking schools, healthcare services, and a growing French expat community make Dubai a comfortable choice for buyers from France.

Best Neighbourhoods in Dubai for French Investors

Choosing the right location is critical for maximizing your investment. You can choose between up-and-coming areas in Dubai, or established communities. The most popular established communities include:

Downtown Dubai

Downtown Dubai is home to some of the city’s most famous landmarks, including the Burj Khalifa and Dubai Mall. Its central location and vibrant atmosphere ensure high demand for both short-term and long-term rentals, with high Dubai rent prices. Properties in this area are positioned in the higher price bracket, offering strong potential for capital appreciation.

Dubai Marina

Dubai Marina offers a lively waterfront lifestyle with luxury towers and endless dining and entertainment options. Its popularity with tourists and residents alike makes it an excellent choice for holiday homes and high-yield investment properties.

Palm Jumeirah

Palm Jumeirah is Dubai’s world-famous man-made island, featuring some of the most prestigious villas and apartments in the city. It appeals to lifestyle buyers seeking exclusivity, beachfront access, and world-class amenities. Properties on the Palm command premium prices, reflecting the community’s reputation for luxury.

Dubai Hills Estate

Dubai Hills Estate is a master-planned community known for its spacious villas, modern townhouses, and elegant apartments. Its family-friendly environment and proximity to leading French international schools make it especially attractive for relocating families. Property prices here are generally more affordable compared to prime coastal areas, with strong long-term growth prospects.

Property Types Available to Foreign Buyers

When investing in real estate in Dubai, UAE, French nationals can buy in one of the many freehold communities. Investors can choose from a range of properties, including:

• Apartments: Ideal for those wanting to buy an apartment in Dubai for rental or personal use. Layouts from studios to three-bedroom flats offer spaces to suit all preferences. 

• Villas and Townhouses: Ideal for families or those seeking spacious living with private gardens.

• Off-Plan Properties: Buying an off-plan property directly from a developer at pre-construction prices offers the potential for significant capital gains upon project completion.

How to Buy Property in Dubai from France

The process to buy real estate in Dubai from France is straightforward, but it differs slightly depending on whether you're purchasing off-plan (directly from a developer) or a secondary market (resale) property. In both cases, careful planning and professional support are essential.

Choose a trusted real estate advisor

Work with a reputable real estate agency that understands both the Dubai market and the needs of international buyers. A specialist can help you shortlist suitable properties, handle paperwork, and coordinate the purchase remotely.

Reserve the property

• Off-plan: Reservation fees are typically between 5% and 10% of the total price. The developer may also require specific documents such as passport copies and signed reservation forms.

• Secondary market: You’ll generally sign a Form F (the unified sales contract) and pay a 10% deposit held by the broker or in escrow, depending on the arrangement.

Sign the Sales Agreement

• Off-plan: You’ll sign a Sales and Purchase Agreement (SPA) directly with the developer, outlining key terms such as property details, payment plan schedule, and expected handover date. 

• Secondary: Once all terms are agreed upon and both the buyer and seller have signed the Form F, a No Objection Certificate (NOC) is requested from the developer to proceed with the transfer.

Payment and fund transfer

Payments can be made via escrow accounts (off-plan) or directly to the seller (secondary). French buyers should factor in currency conversion from EUR to AED, and may wish to consult a currency exchange specialist to optimise rates.

Property transfer and registration

• Off-plan: Registration is completed through the Oqood system (for under-construction projects) under the Dubai Land Department (DLD).

• Secondary: The transaction is finalised at an Approved Property Registration Trustee office, where ownership is formally transferred and the buyer receives the title deed.

Consider using a Power of Attorney (POA)

If you don’t plan to travel to Dubai during the process, you can appoint a legal representative with a notarised Power of Attorney. This allows them to sign contracts, make payments, and complete registration on your behalf.

Financing (optional)

If you're not purchasing in cash, it’s important to explore your options. Non-residents can typically finance up to 60% of the property value, with mortgage rates in Dubai ranging from 4% to 5%, depending on the bank and your eligibility.

Tax and Financial Benefits

There can be significant tax and financial benefits to buying real estate in Dubai UAE when compared to France. These include: 

Not only is the absence of income and capital gains tax advantageous, but Dubai rent price trends also present strong yield opportunities.

While the average Dubai rental price for a one-bedroom apartment is around €18,000 per year, Parisian rents often barely offset ownership costs due to high taxation and maintenance expenses. 

Currency and Tax Planning Tips for French Buyers

While Dubai offers tax-free benefits, French residents must consider cross-border tax implications. It is advisable to consult a tax advisor familiar with French-UAE treaties to assess potential exposure to French wealth tax (IFI) and ensure full compliance.

Currency risk can also be mitigated through forward contracts or specialist currency brokers, helping you lock in favorable EUR-AED exchange rates when transferring larger sums.

Residency Options for French Investors in Dubai

In addition to the financial benefits, property ownership in Dubai can open the door to residency.

Investors who purchase property worth AED 750,000 or more (approx. €190,000) may qualify for a renewable 2-year residence visa.

For investments of AED 2 million+ (approx. €500,000), a 10-year Golden Visa may be available. These options are particularly attractive for French buyers seeking long-term access to the UAE without employment sponsorship.

Legal Framework and Buyer Protections

Dubai’s property market is regulated by the Dubai Land Department (DLD) and the Real Estate Regulatory Authority (RERA), which provide a strong legal framework to protect international buyers.

All off-plan developments must be registered and linked to escrow accounts, ensuring your funds are secure. French investors can benefit from clear property laws, transparent developer licensing, and mandatory sales contracts—offering peace of mind throughout the transaction.

Mistakes to Avoid When Buying Dubai Property from Abroad

If you decide to ​buy real estate in Dubai, make sure to safeguard your investment by avoiding these common mistakes:

• Don't skip research: Always research the area you are investing in, the project information and the developer’s track record. 

• Avoid emotional decisions: Focus on investment metrics, not just lifestyle appeal.

• Budget for all costs: Include DLD fees (4%), agent fees (2%), and service charges when calculating returns.

• Consider market trends: Understand the latest market trends to identity the best investment opportunities and high-growth areas. 

Partnering with an experienced agent who specialises in helping European buyers navigate real estate in Dubai UAE can prevent common pitfalls.

Tips for Long-Distance Property Management

Managing a property from France can be simple with the right setup:

• Hire a reputable property manager: They will handle tenant sourcing, rent collection, and maintenance.

• Opt for furnished units: Ready-to-move-in homes are easier to rent out.

• Monitor remotely: Many property managers offer online dashboards so you can track occupancy and income.

By putting strong management processes in place, you can maximize rental returns without constant involvement.

Conclusion: Is Now a Good Time to Buy Property in Dubai from France?

With a stable currency, tax advantages, strong rental yields, and property prices still significantly lower than France’s top markets, there has never been a better moment to buy real estate in Dubai. Whether you aim to buy an apartment in Dubai for lifestyle or investment purposes, the current climate offers excellent value compared to cities like Paris.

If you're considering entering the market, it’s essential to work with an experienced real estate advisor who understands both the nuances of Dubai’s property laws and the expectations of European investors.

Engel & Völkers is a leader in premium real estate, with over 1,000 locations in 35 countries, including France and the UAE. 

Contact Engel & Völkers Dubai today to discover the best real estate opportunities tailored to your goals and take the first steps towards property ownership in one of the world’s fastest-growing real estate markets.