🕊️ Financial PlanningBuying property and getting a mortgage in the UAE
Foreigners can own property outright in the UAE, but only in designated freehold areas — most of the popular parts of Dubai and Abu Dhabi. Buying is a real option for long-term residents, and a AED 2 million purchase can also earn a 10-year Golden Visa. The two things to plan for are the deposit (you can borrow at most 80% of the value as an expat) and the cash cost of the fees, which cannot be added to the loan. This guide covers the loan, the fees and the process.
The mortgage: deposit, rate and limits
For an expatriate resident buying a first home worth up to AED 5 million, a bank can lend a maximum of 80% of the value, so you need at least 20% as a down payment (25% above AED 5M, and more for a second property or an off-plan purchase). A UAE national can borrow up to 85%. Your total monthly debt repayments — including this loan, car finance and credit-card minimums — must stay within a 50% debt-burden ratio of your income, and the loan term usually cannot run past age 65–70.
Rates are quoted as a fixed period (typically 1–5 years) then a variable rate of EIBOR plus a margin. Because the dirham is pegged to the US dollar, EIBOR tracks US interest rates. Islamic banks offer the same thing structured as Ijara (lease-to-own). Compare the rate after the fixed period, not just the teaser.
The upfront costs — all in cash
In Dubai the buyer pays: the Dubai Land Department transfer fee of 4% of the price plus a small admin fee; a mortgage registration fee of 0.25% of the loan plus AED 290; the estate agent commission of about 2% plus 5% VAT; a bank arrangement fee of around 1%; a property valuation fee (roughly AED 3,000); and trustee office fees. Abu Dhabi's transfer fee is lower (around 2%). None of this can be added to the mortgage.
So on a AED 1.5 million flat, plan for the 20% deposit (AED 300,000) plus roughly AED 100,000–120,000 in fees. Budget around 7–8% of the price for fees on top of the deposit.
Rent vs buy, and the exit
Renting is the norm in the UAE and stays flexible — useful if your job or visa is not certain. Buying makes more sense the longer you expect to stay, because the transaction costs are high (about 8% in, plus a fee to sell) and only pay off over several years.
If you buy, remember you may one day leave the country. A property is far less liquid than a global index fund, service charges continue whether you live there or not, and selling can take months. Treat a UAE home as a lifestyle choice with an investment element, not a core retirement asset.
Frequently Asked Questions
- Can a foreigner buy property in the UAE?
- Yes, in designated freehold areas — most of the popular parts of Dubai and Abu Dhabi. Outside those areas foreigners usually get only leasehold or usufruct rights. A qualifying purchase (from AED 2 million) can also make you eligible for a 10-year Golden Visa.
- How big a deposit do I need for a UAE mortgage?
- As an expat resident buying a first home under AED 5M, at least 20% (the loan is capped at 80% of value). 25% above AED 5M, and more for a second property or off-plan. On top of the deposit you need about 7–8% of the price in cash for fees.
- What are the fees to buy in Dubai?
- The Dubai Land Department transfer fee is 4% of the price, plus a mortgage registration fee of 0.25% of the loan, an agent commission of ~2% + VAT, a bank arrangement fee of ~1%, and a valuation. Together roughly 7–8% of the price, all payable in cash.
Informational content, not financial, tax or legal advice. Check amounts, limits and current rules directly with the official sources (the Central Bank of the UAE, the Federal Tax Authority, Al Etihad Credit Bureau, and MOHRE) before making a decision.
