Quick answer: If you’re an expat buying your first home in Dubai with a mortgage, budget around 25–30% of the property price in cash. On a AED 1,000,000 apartment, that’s roughly AED 280,000: a 20% down payment plus about AED 80,000 in fees. Cash buyers pay about 7% on top of the price, and off-plan buyers typically need 10–20% at booking plus the 4% DLD fee.
Most people only plan for the down payment. The fees are what catch first-time buyers out, and they must be paid in cash, not added to your mortgage. This guide shows every cost, what you can reduce, and exactly how much you need in five common situations.
Cash needed at a glance (AED 1,000,000 property)
| Your situation | Down payment | Fees and costs | Total cash needed |
|---|---|---|---|
| Expat resident, first home, mortgage | AED 200,000 (20%) | about AED 81,000 | about AED 281,000 |
| UAE national, first home, mortgage | AED 150,000 (15%) | about AED 82,000 | about AED 232,000 |
| Non-resident, mortgage at 50% | AED 500,000 (50%) | about AED 78,000 | about AED 578,000 |
| Cash buyer (resale) | Full price | about AED 68,000 | about AED 1,068,000 |
| Off-plan with a payment plan | 10–20% at booking | 4% DLD plus small admin fees | about AED 140,000–240,000 upfront |
Estimates for a resale apartment bought through an agent. Fees include the maximum typical bank arrangement fee; yours may be lower. Full breakdowns below.
1. The down payment: how much the bank will lend
The Central Bank of the UAE sets the maximum loan-to-value (LTV), which is the share of the property’s value a bank can lend. Whatever the bank doesn’t lend, you pay as your down payment.
| Buyer | First home up to AED 5M | First home above AED 5M | Second or investment property | Off-plan (any buyer) |
|---|---|---|---|---|
| Expat resident | 80% loan (20% down) | 70% loan (30% down) | 60% loan (40% down) | 50% loan (50% down) |
| UAE national | 85% loan (15% down) | 75% loan (25% down) | 65% loan (35% down) | 50% loan (50% down) |
| Non-resident | Set by each bank, often 50–60% loan (40–50% down) | |||
Three things can make your real down payment bigger:
- The bank lends on the lower of the price or its own valuation. If you agree AED 1,000,000 but the bank values the flat at AED 950,000, it lends 80% of AED 950,000, and you cover the gap.
- Your salary limits the loan. Your total monthly debt repayments, including the new mortgage, can’t exceed 50% of your monthly income.
- Banks can lend less than the maximum. The limits above are ceilings, not guarantees.
2. Every fee explained
| Fee | Who you pay | Typical amount | On a AED 1M purchase |
|---|---|---|---|
| DLD transfer fee | Dubai Land Department | 4% of the price | AED 40,000 |
| DLD admin fees (title deed, map, knowledge and innovation fees) | Dubai Land Department | about AED 520–580 | about AED 580 |
| Trustee office fee | Registration trustee office | AED 4,200 (AED 2,100 if the price is under AED 500,000), including VAT | AED 4,200 |
| Agent commission | Your buyer’s agent | 2% + 5% VAT | AED 21,000 |
| Mortgage registration | Dubai Land Department | 0.25% of the loan + AED 290 | AED 2,290 (on an AED 800,000 loan) |
| Bank arrangement fee | Your bank | Up to about 1% of the loan + VAT (sometimes waived) | up to AED 8,400 |
| Property valuation | Bank-appointed valuer | AED 2,500–3,500 | about AED 3,000 |
| DEWA security deposit (refundable) | DEWA | AED 2,000 apartment, AED 4,000 villa | AED 2,000 |
With a mortgage, you’ll also need life insurance, which most banks require and which is usually paid monthly.
3. Worked examples
Example 1: Expat resident, first home, AED 1,000,000 apartment with a mortgage
| Item | Amount |
|---|---|
| Down payment (20%) | AED 200,000 |
| DLD transfer fee (4%) | AED 40,000 |
| DLD admin fees | AED 580 |
| Trustee office fee | AED 4,200 |
| Agent commission (2% + VAT) | AED 21,000 |
| Mortgage registration (0.25% of AED 800,000 + AED 290) | AED 2,290 |
| Bank arrangement fee (up to 1% + VAT) | AED 8,400 |
| Valuation | AED 3,000 |
| DEWA deposit | AED 2,000 |
| Total cash needed | AED 281,470 |
That’s about 28% of the price, even though you’re only putting 20% down.
Example 2: UAE national, first home, same apartment
With an 85% loan (AED 850,000), the down payment drops to AED 150,000. Fees rise slightly because the loan is bigger, bringing the total to about AED 232,000. UAE nationals should also check federal and emirate housing programmes before taking a bank mortgage.
Example 3: Non-resident buyer with a 50% mortgage
With a AED 500,000 loan, you pay AED 500,000 down plus about AED 78,000 in fees, about AED 578,000 in total. Some banks lend non-residents up to 60%, which would reduce this, so compare offers.
Example 4: Cash buyer
You pay the full AED 1,000,000 plus the DLD fee, admin fees, trustee fee, agent commission and DEWA deposit: about AED 1,067,800. With no mortgage, your fees are about 6.8% of the price.
Example 5: Off-plan with a payment plan
Off-plan buyers usually pay a booking amount of 10–20% plus the 4% DLD fee when the sale is registered. On a AED 1,000,000 unit, that’s about AED 140,000 (10% plan) to AED 240,000 (20% plan) upfront. The rest is paid in instalments during construction and at handover. There’s usually no agent commission, because the developer pays it.
If you plan to take a mortgage at handover, you’ll need cash for that stage too, so check the payment plan carefully.
4. Costs people forget
- Service charges: paid yearly to the building’s owners association, and they vary a lot by community. Ask for the latest statement before you buy.
- Developer NOC fee: on resale properties, the developer issues a no-objection certificate, typically AED 500–5,000. Check your contract for who pays.
- Moving and furnishing: easily AED 10,000–50,000+ depending on the home.
- Power of attorney: if you can’t attend the transfer in person, budget roughly AED 1,000–2,000.
- An emergency fund: keep 3–6 months of expenses aside after buying. Don’t put every dirham into the property.
5. How to reduce the cash you need
- Look for DLD fee offers. Some developers pay part or all of the 4% DLD fee as an incentive on new projects.
- Buy ready units directly from the developer. When developers sell completed units themselves, there’s no agent commission to pay.
- Buy without a broker. Buying directly from an owner can also save the 2% commission. Our guide on how to buy property in Dubai without broker commission explains how to do it safely.
- Ask the bank to waive fees. Arrangement fees are often reduced or waived, especially if you have a strong profile or move your salary.
- Consider off-plan. Payment plans spread the cost over several years, but check the developer’s track record first.
- Get pre-approved early. Knowing your exact loan avoids surprises when the valuation comes in.
From my own experience: you can sometimes buy an apartment with less than AED 150,000 in cash, especially a studio, when a developer sells ready units directly. It isn’t common, but when these opportunities come up, buying straight from the developer can save you AED 10,000–15,000 because there’s no agent commission to pay.
This guide is for general information only and is not financial advice. Fees and bank criteria change, so confirm current amounts with the Dubai Land Department, your bank and your agent before buying.
