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How Much Deposit Do I Need To Buy A Property In Dubai?

Understanding Property Deposits in Dubai

If you’re considering buying a property in Dubai, one of the key factors to consider is the deposit required. The deposit is an upfront payment that you make when purchasing a property and it is typically expressed as a percentage of the property’s total value. In Dubai, the deposit amount can vary depending on various factors, such as the type of property, the financing option you choose, and the developer’s terms. It’s important to have a clear understanding of the deposit requirements in Dubai to plan your finances accordingly and make an informed decision. In this article, we will explore how much deposit you need to buy a property in Dubai and the factors that can influence this amount.

To get a better understanding of the deposit amount needed to buy a property in Dubai, it’s important to be aware of the market norms in the emirate. Typically, the deposit amount for ready properties in Dubai is around 10% of the property’s value. For off-plan properties, the deposit amount is usually higher and can range between 20% to 30%. These percentages may vary based on the developer’s terms and the stage of construction of the property. Additionally, it’s important to note that some developers may offer flexible payment plans that allow you to pay the deposit in installments over a specified period, making it more manageable for buyers.

It’s important to understand that the deposit amount is separate from other costs and fees associated with buying a property in Dubai, such as registration fees, agent commissions, and other administrative expenses. These additional costs can add up and should be factored into your budget when calculating the total amount required to purchase a property in Dubai. It’s always a good idea to consult with a financial advisor or a property expert to get a clear understanding of the overall costs and expenses involved in buying a property in Dubai.

Factors Influencing the Deposit Amount

Property Type

The type of property you plan to buy can have an impact on the deposit amount required. As mentioned earlier, ready properties usually require a lower deposit percentage compared to off-plan properties. This is because off-plan properties are still under construction and carry a higher level of uncertainty. Developers may require a higher deposit for off-plan properties to mitigate potential risks and secure buyer commitments during the construction phase. When considering the property type, it’s essential to evaluate your risk tolerance, financial situation, and timeline to determine the suitable deposit amount you’re willing and able to pay.

Financing Option

Another factor that can influence the deposit amount is the financing option you choose. If you plan to finance your property purchase through a mortgage, the deposit amount required by the bank or financial institution may vary. Banks in Dubai generally require a minimum deposit of 20% for expatriates and 25% for UAE nationals. However, these percentages can vary depending on the individual’s financial profile, income, and the specific terms of the mortgage agreement. It’s advisable to consult with multiple banks or mortgage providers to understand their deposit requirements and choose the option that aligns with your financial capabilities.

Developer’s Terms

The terms set by the property developer can also influence the deposit amount. Some developers may offer attractive payment plans with lower deposit requirements to attract buyers. These payment plans may allow you to pay the deposit in installments or offer extended payment periods to make the purchase more affordable. On the other hand, some developers may have stricter terms and require a higher deposit percentage to secure the property. It’s essential to research and compare different developers’ offerings to find one that suits your financial situation and preferences.

Additional Considerations

When planning your property purchase in Dubai, there are a few additional factors to keep in mind regarding the deposit amount:

  • The deposit amount is typically non-refundable, so it’s important to conduct thorough research and due diligence before making the payment.
  • Consider the impact of the deposit amount on your overall budget and cash flow. Ensure that you have sufficient funds available and that paying the deposit doesn’t strain your financial situation.
  • Take into account any additional costs associated with the property purchase, such as registration fees, agent commissions, and maintenance charges.
  • If you’re considering an off-plan property, carefully review the developer’s track record, construction timeline, and any potential risks before committing to a higher deposit.


When it comes to buying a property in Dubai, the deposit amount plays a significant role in the overall purchase process. Understanding the deposit requirements, considering the property type, financing option, and developer’s terms can help you make an informed decision. It’s important to evaluate your financial situation, conduct thorough research, and seek professional advice to ensure a smooth and successful property purchase in Dubai.

Frequently Asked Questions

Here are some common questions and answers regarding the deposit required to buy a property in Dubai:

1. What is the typical deposit required to buy a property in Dubai?

The typical deposit required to buy a property in Dubai is 25% of the purchase price. This means that if the property you want to buy is priced at AED 1 million, you would need to make a deposit of AED 250,000.

This deposit is usually paid upfront when signing the sales agreement or can be paid in installments based on the developer’s or seller’s discretion. It is important to note that the deposit is non-refundable if the buyer decides to back out of the purchase.

2. Can I negotiate a lower deposit amount?

While the typical deposit amount is 25%, it is possible to negotiate a lower deposit with the seller or developer. This might be especially true for off-plan properties or if you have a good relationship with the seller.

However, it is important to keep in mind that a lower deposit might come with certain conditions or disadvantages, such as a higher overall purchase price or less favorable payment terms. It is recommended to carefully consider the terms and conditions before negotiating a lower deposit amount.

3. Are there any other costs in addition to the deposit?

Yes, apart from the deposit, there are other costs associated with buying a property in Dubai. These include:

– Dubai Land Department (DLD) fees: These are government fees that need to be paid for the transfer of ownership. They are usually around 4% of the purchase price.

– Real estate agent commission: If you are using the services of a real estate agent, their commission fee will also be an additional cost. It is typically around 2% of the purchase price.

– Mortgage registration fees: If you are financing your property purchase through a mortgage, there will be additional fees for registering the mortgage with the bank.

4. Can I use my current property as a deposit?

Yes, it is possible to use your current property as a deposit for the purchase of a new property in Dubai. This is known as a part-exchange or trade-in option. The value of your current property will be assessed, and it will be used as a partial payment towards the new property.

However, it is important to note that not all developers or sellers accept part-exchange options, and the value of your current property may not fully cover the cost of the new property. It is recommended to consult with a real estate agent or developer to understand the specific requirements and conditions of using your current property as a deposit.

5. How do I secure my deposit when buying a property in Dubai?

When buying a property in Dubai, it is important to ensure the security of your deposit. Here are a few steps to follow:

– Use a trusted real estate agent or developer: Work with reputable professionals who have a track record of successful transactions.

– Verify the payment terms and conditions: Read the sales agreement thoroughly and understand the terms and conditions related to the deposit payment.

– Consider using an escrow account: An escrow account is a third-party account that holds the funds until the property purchase is completed. This offers an extra layer of security and ensures that the deposit is only released to the seller upon meeting certain conditions.

When buying a property in Dubai, it is important to consider the deposit required. Generally, the deposit for purchasing property in Dubai is around 25% of the total property value. This means that if the property is worth $500,000, you would need to put down a deposit of approximately $125,000.

It’s worth noting that some developers may require a higher deposit, up to 50% of the property value, depending on the specific project. Additionally, it’s important to factor in other costs associated with buying a property, such as registration fees, agent commission, and mortgage fees. Therefore, it is advisable to carefully examine the specific requirements of each property and work with a reputable real estate advisor to ensure a smooth and successful purchase.

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