To purchase a home in Dubai, the required deposit—or down payment—varies based on your residency status and the property's value. Here's a breakdown:
🏠 Deposit Requirements for Mortgages in Dubai
For UAE Nationals:
- Properties under AED 5 million: Minimum deposit of 15%.
- Properties over AED 5 million: Minimum deposit of 25%.
For Expatriates (Residents):
- Properties under AED 5 million: Minimum deposit of 20%.
These percentages are mandated by the UAE Central Bank and are standard across most lenders
For Non-Residents:
- Deposits typically range from 25% to 50%, depending on the lender and property value. Some banks may require higher deposits for non-resident buyers .
🏗️ Off-Plan Property Purchases
When buying off-plan properties (those under construction), developers often offer flexible payment plans:
- Initial deposit: Typically 10% to 20% at the time of booking.
- Staggered payments: Scheduled throughout the construction phase, often tied to project milestones.
- Post-handover plans: Some developers allow up to 50% of the property price to be paid after completion, over a period of 2 to 5 years .
💰 Additional Costs to Consider
Beyond the deposit, buyers should budget for:
- Dubai Land Department (DLD) fee: 4% of the property value.
- Mortgage registration fee: 0.25% of the loan amount plus AED 290.
- Valuation fee: Approximately AED 2,500 – AED 3,500.
- Agency commission: Typically 2% of the property value.
These costs can add an additional 7% to 8% to the property's price .
💡 Tips for Prospective Buyers
- Higher deposits: Offering more than the minimum can improve mortgage approval chances and may secure better interest rates.
- Pre-approval: Obtaining mortgage pre-approval helps determine your budget and shows sellers you're a serious buyer.
- Consult professionals: Engage with mortgage advisors or brokers to navigate the buying process effectively.
Moving to Dubai: How to Get Residency Through Real Estate Investment(Opens in a new browser tab)
How to move to Dubai from uk and become Tax Free(Opens in a new browser tab)
non-dom status will be abolished from April 2025(Opens in a new browser tab)
This article is general information about the Dubai property market, not financial advice. Prices and regulations change; ask for up-to-date details before you buy.
