Down Payment in the UAE: How Much You Actually Need

For most expatriate buyers, the minimum down payment starts at 20% of the purchase price for a first residential property valued under AED 5 million, because banks commonly lend up to 80% loan-to-value. UAE nationals are commonly offered around 85% financing. Second properties, higher-value homes and off-plan units commonly require more; confirm the exact figure with your bank.

Example in round numbers: a AED 1 million apartment implies roughly AED 200,000 of equity at 80% financing. The same logic applies whether you are buying a studio in Town Square or a villa in Arabian Ranches — the percentage, not the address, sets the floor. Budget in dirhams, not in percentages alone.

The down payment is only part of the cash you need. In Dubai add the 4% Dubai Land Department transfer fee plus small administration charges, resale agency commission of typically 2% plus 5% VAT, and the mortgage registration fee of 0.25% of the loan plus AED 290 where a mortgage is used. Valuation, trustee-office and insurance costs are commonly added on top.

Abu Dhabi, Sharjah, Ajman, RAK, Fujairah and Umm Al Quwain each run their own registries with their own fee schedules, which differ from Dubai's. Ask the transfer office or your conveyancer for the current schedule in writing before you commit, because published tariffs change.

A workable rule of thumb is to hold 27% to 30% of the purchase price in cash for a mortgaged purchase in Dubai, covering the down payment, transfer costs and a buffer. Add furnishing, utility deposits and the first months of service charges, which for apartments are charged per square foot and vary widely by tower.

Keep an emergency fund after completion rather than arriving at the transfer office with exactly the right amount. If you are buying off-plan instead, the staged instalments replace the single down payment, but handover still requires the remaining equity, so plan the same way and verify every milestone in the contract.