What is the minimum down payment for buying property in Dubai?
The minimum down payment to buy property in Dubai is 20% of the purchase price for expatriates purchasing properties under AED 5 million, while it rises to 30% for properties above AED 5 million. For UAE nationals, the requirement is lower at 15% for properties under AED 5 million and 25% for higher-value properties.
These figures reflect the Dubai Land Department (DLD) and Central Bank regulations governing loan-to-value (LTV) ratios for mortgages. So what does this mean for buyers? Essentially, your nationality, property value, and whether it’s a first home or investment determine how much you need upfront.
Down Payment Rules in Dubai
- Expatriates: 20% minimum down payment (properties ≤ AED 5M), 30% for higher-value homes.
- UAE Nationals: 15% minimum down payment (properties ≤ AED 5M), 25% for higher-value homes.
- Off-Plan Purchases: Developers may set structured installment plans, but banks still follow LTV caps if financing is involved.
Other Costs to Consider
- 4% DLD transfer fee plus admin charges.
- Mortgage registration fee: 0.25% of loan value.
- Valuation fees (usually AED 2,500–3,500).
- Service charges depending on community and property type.
Why These Rules Matter
The down payment requirements are designed to balance market stability with investor access. For buyers, this ensures you enter with adequate equity, reducing risk. If you’re purchasing for investment, higher down payments for luxury or second homes are meant to encourage sustainable growth in the market.