December 23, 2025 | Dubai, UAE: Buying a home in Dubai, one has to stand in line with 25-30 per cent of the value in cash hand. It is not just the down payment, but it is a collection of fees which cannot be included in the mortgage, so you must expect a very big initial financial blow when you are entering the Dubai property market. Buying a home in Dubai requires buyers to prepare substantial upfront cash before entering the transaction.
Upfront Cash Requirements and Disaggregation
Ismail, Al, Hammadi, who is the CEO of IAH Group, states that the amount that you require typically includes the down payment, 20 per cent for expats and 15 per cent for Emirati, with additional items such as Dubai Land Department (DLD) fees, commission fee paid to the agent, valuation, and registration expenses for buying a home in Dubai.
Supposing the value of the property is a million dirhams, you will have approximately 250k dirhams cash in hand, so that the process can run smoothly. Buying a home in Dubai means understanding how down payments differ for expatriates and UAE nationals.
The down payment will vary depending on the price of the property and your nationality. In houses with a value of less than 5 million dirhams, the expatriates will be required to pay a down payment of a standard of 25 per cent, whereas UAE nationals will just pay 20 per cent. These are the lowest percentages you can be required to pledge before you can secure a mortgage in Dubai.
In addition to the down payment, there are compulsory charges that accumulate. A flat charge of 4 per cent on the value of the property is imposed by the DLD, and it is one of the largest additional charges. Navneet Mandhani, the founder of Karma Developers, reminds us that with such a 4 per cent DLD fee among other expenses, you are paying some 26 per cent of the property value as the first commitment. Buying a home in Dubai also involves accounting for Dubai Land Department charges early in budgeting.
Another 2% of the price is often added by agent commissions. The developer NOC is between 1,000 and 5,000 dirhams, excluding the 5% VAT. The valuation fees that banks demand to grant a mortgage are between 2,500 and 3,500 dirhams. The processing fee charged on mortgages is normally approximately 1 per cent of the loan value.
The Requirements and Criteria of a Mortgage
The standard minimum monthly salary needed to obtain a mortgage is 15,000-25,000 dirhams by the Dubai banks, which is relatively high; however, this trend has been changing as of late to accept people with an income of 15,000-20,000 a month.
The entire mortgage process takes approximately four weeks since you are signing the Agreement of Sale, but again, it may take more time depending on whether you are paying cash or financing. Buying a home in Dubai through a mortgage depends heavily on meeting the bank’s salary eligibility criteria.
The first-time purchasers typically require 20-25 per cent equity, and repayment is possible within 25 years with good rates offered by various banks. The number and rate of payment are dependent on your residence status, the term of the loan and the property value.
Down Payment Requirements by Buyer Type and Property Value
| Buyer Type | Property Value | Down Payment Required | |
| UAE Nationals | Under Dh5 million | 15% | |
| UAE Nationals | Over Dh5 million | 20% | |
| Expatriates | Under Dh5 million | 20% | |
| Expatriates | Over Dh5 million | 25% |
Typical Costs Breakdown and Investment
| Cost Component | Percentage | Amount (Dh) |
| Down Payment (Expat) | 20% | 200,000 |
| DLD Fee | 4% | 40,000 |
| Agent Commission | 2% | 20,000 |
| NOC from Developer | – | 1,000-5,000 |
| Property Valuation | – | 2,500-3,500 |
| Mortgage Processing Fee | 1% | 10,000 |
| Total Upfront Cash Needed | ~26% | ~260,000 |
When you purchase off-plan, you can make an alternative payment every month as it is being built or even five years after the building is complete. These longer-term schemes occasionally allow you to forego a conventional mortgage, but pre-completion schemes may frequently demand 40-60 per cent of the sales price as an initial sum. Buying a home in Dubai can be easier with flexible off-plan payment schedules for some buyers.
Dubai Land Department has introduced a First-Time Home Buyer Programme where new units are given priority access, reduced prices, and relaxed payment plans on registration fees upon using a qualified credit card. It is only available to properties that cost less than 5 million dirhams and to residents of the UAE who do not already own a property in Dubai. Buying a home in Dubai under first-time buyer programmes may reduce registration and payment pressure.
Majid Al Futtaim collaborated with Emirates NBD to provide off-plan mortgage funding to individuals who are already 50 per cent in their payments. And that is filling a long-standing gap in which funding was not typically available to homes that are still being built, as opposed to ready ones.
Even with easier rates and longer repayment plans, the biggest hurdle for buying a home in Dubai is the upfront cost. Analysts maintain that the primary obstacle is the 26 per cent upfront commitment, but the investment costs lessen the long-term ownership of those accustomed to renting.
Buying a home in Dubai remains challenging mainly because of the large upfront commitment. When you have the cash, it is better to pay up front:
- There are no interests, faster transactions (there are no loans that need approval and appraisal), and you can even bargain for better prices.
- Nevertheless, the majority of locally supported purchases are with the help of mortgages, whereas cash acquisitions (approximately 85% of spending on real estate in Dubai) are more often than not of foreign investors.
- Buying a home in Dubai with full cash can significantly speed up the ownership transfer.
Your payment, which alters the way of buying. Money transactions are quicker than those done on mortgages, providing an easier route to ownership, provided one has ready cash. Should you require finance, do due diligence on the implications of various modes of payment on you and stay on top of your financials to clinch the property deal in the emirate.
