Buying a Dubai Home: Upfront Costs and Income Requirements

First-time homebuyers in Dubai face significant upfront costs and income requirements. To purchase a home priced under Dh5 million, expatriate buyers typically need a 20% down payment, which translates to Dh300,000 for a Dh1.5 million property. Additional expenses include a 4% Dubai Land Department transfer fee, mortgage registration charges, valuation fees, and other bank charges, potentially bringing the total upfront cost to Dh360,000 to Dh400,000. Buyers should also factor in ongoing costs like service charges, which are crucial to evaluate when selecting a property.

Beyond the initial investment, income plays a vital role in mortgage approval. Banks in Dubai often use a debt burden ratio, capping monthly debt repayments at 50% of gross income. For properties between Dh1.5 million and Dh2.5 million, a monthly income of Dh30,000 to Dh40,000 is typically required. Maintaining a cash buffer equivalent to at least six months of housing costs is also advisable to manage potential delays and unexpected expenses.

Off-plan purchases remain popular due to their staggered payment structures, but require careful planning. Buyers should focus on total ownership costs, including registration fees and holding costs, rather than solely on installments. It's crucial to assess affordability by considering potential delays, vacancy periods, and carrying expenses. Areas like Jumeirah Village Circle and Al Furjan offer relatively accessible pricing, while Business Bay and Downtown involve higher entry costs.