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A little over a decade ago, only citizens of Dubai could own land. In May 2002, Sheikh Mohammed bin Rashid Al Maktoum passed a decree allowing foreigners to buy property freehold. Needless to say, the city's property market boomed. Both local and international real estate developers purchased land and began construction.

From 2002 to 2008, Dubai's property prices almost quadrupled. Large-scale developments turned Dubai into one of the fastest growing cities in the world.

After 6 years of unprecedented price increase, the global financial crisis brought the real estate market in Dubai to its knees. High-end apartments and villas were the worst-hit, with prices falling 35% from the second to the last quarter of 2008. Apartment prices in Downtown Burj Dubai fell 28%. Caution and reluctance exercised by homebuyers caused a steep decline in demand and delayed or cancelled nearly half the construction projects in the city.

From 2012, Dubai's property market made a remarkable recovery. Within the first quarter of 2013, there was a 16.5% hike in average rents for apartments. The RPPI skyrocketed by a record 25.9% by November 2013. Sales prices of apartments rose by 24.5% and those of villas rose by 14.9% during this period. In the present day, Dubai's property market continues to grow steadily and outperform its global peers.

Dubai offers a range of property types, spanning villas, townhouses, penthouses, apartments and duplexes. Once you have selected a property that you like, place a formal offer through an agent. If your offer is accepted, you will have to pay a deposit amount between 5% and 15% of the property price. As a buyer, you will also have to pay a transfer fee (4%) and agent fees (2%). Per the Real Estate Regulator Agency (RERA), the 4% transfer fee should be split between buyer (2%) and seller (2%). However, during Dubai's peak property market times, the buyers have been the ones bearing the full cost of the transfer fee. At the end of the day, always remember that everything is negotiable in real estate transactions.

If you plan to purchase off-plan property, make sure to thoroughly research the developer and project. The best place to start is to check with Dubai Real Estate Regulatory Agency (RERA) that the developer is registered with RERA, the project is registered with RERA and the project escrow accounts must also be registered with RERA.