The term "no down payment" is a very common term used in Dubai property sales. It is commonly used in property developer advertising, property agent sales pitches, and social media posts touting the ability to own a property in Dubai without a huge amount of money saved up. While some are legitimate, many are false, and a small percentage are downright false but presented in a very attractive manner.
The honest answer to whether it is possible to buy a property in Dubai without a down payment is: yes, it is possible at times, depending completely on the path you choose, the type of property you are purchasing, and the profile of the borrower. While there are legitimate financing structures in place that make it possible to buy a property in Dubai without a huge amount of money saved up, it is the difference between the people who will consider the options and the people who actually take the steps to buy a property in Dubai. This guide will cover all the legitimate options available to property buyers in Dubai who wish to buy a property in Dubai without a down payment. We will cover how they work, who they are best suited for, the actual cost to the buyer, and the hidden pitfalls. While there are always pitfalls in a property sale in Dubai, the ones we will cover here are the ones most likely to be hidden from the buyer.
Before we get into the options available to property buyers in Dubai who wish to buy a property in Dubai without a down payment, a brief word of context: "no down payment" and "low down payment" are related terms but are not exactly the same. While "low down payment" is a legitimate term used in property sales in Dubai and is a legitimate option for property buyers in Dubai, "no down payment" is not. While there are legitimate "no down payment" options available in Dubai, they are rare and are usually accompanied by conditions that offset the benefit elsewhere.
The Dubai property market recorded over AED 400 billion in transaction value in 2023 according to the Dubai Land Department, with off-plan sales making up a growing share of that total. A significant portion of those off-plan buyers used payment plan structures rather than traditional mortgage financing. That's not a coincidence — payment plans have become one of the most effective tools for buyers who want to enter the market without a large upfront cash commitment.
Off-Plan Payment Plans: The Closest Thing to No Down Payment
If there's one financing structure in Dubai that genuinely comes close to the "no down payment" promise, it's the off-plan developer payment plan. This is how it works and why it's become so popular.
When you buy an off-plan property — meaning a property that hasn't been built yet or is still under construction — the developer typically doesn't require you to pay the full purchase price upfront. Instead, they structure the payment across a timeline that matches the construction schedule, and sometimes extends beyond it. The upfront amount required, which functions as a down payment, is often as low as 5% to 10% of the purchase price.
On a AED 1.5 million apartment, that's AED 75,000 to AED 150,000 upfront instead of the AED 300,000 to AED 450,000 you'd need as a minimum down payment on a mortgage for the same property. That's a meaningful difference for buyers who have some savings but not a full mortgage deposit ready.
The payment schedule after that initial amount varies by developer and project. Common structures include:
- 10% on booking, 10% during construction milestones, 80% on handover
- 20% during construction spread across milestones, 80% on handover
- 60/40 plans: 60% during construction, 40% post-handover spread over 2 to 3 years
- 50/50 plans: 50% during construction, 50% after handover
- 1% per month plans: small monthly payments over the construction period, balance on handover
- Post-handover payment plans: a portion of the purchase price paid after you receive the keys, sometimes interest-free for 2 to 5 years
The post-handover payment plan is particularly interesting for buyers who expect their income or savings to grow over the construction period. You move in, or your tenant moves in, and you continue paying down the purchase price from rental income or salary rather than needing the full amount upfront.
Developers including Emaar, Danube, Samana, and several others have run aggressive post-handover plans in recent years specifically to attract buyers who can't or don't want to commit the full purchase price at once. Some of these plans are genuinely attractive. Others have higher base prices than equivalent ready properties, meaning you're effectively paying for the payment flexibility through a price premium. Always compare the off-plan price against recent resale transactions for similar completed units in the same area before deciding the plan is good value.
You can browse current off-plan projects and payment plan structures on our property launches page to see what's available right now across different developers and price points.
Mortgage Financing: What the Minimum Down Payment Actually Is
If you're buying a ready property rather than off-plan, you're almost certainly going to need a mortgage if you don't have the full purchase price in cash. And mortgages in the UAE have mandatory minimum down payment requirements set by the Central Bank of the UAE — these are not negotiable with individual banks.
Here's how the minimums break down:
- UAE nationals buying a first property: minimum 20% down payment for properties up to AED 5 million
- Expat residents buying a first property: minimum 20% down payment for properties up to AED 5 million
- Any buyer (national or expat) buying a property above AED 5 million: minimum 30% down payment
- Second property purchase (any buyer): minimum 35% down payment regardless of value
- Non-resident buyers: minimum 50% down payment
These minimums are Central Bank regulations, not bank policy. No UAE bank can legally offer a mortgage below these thresholds, regardless of your credit profile or the relationship you have with the bank. If someone is telling you they can get you a mortgage with a 10% down payment on a ready property in Dubai, they're either mistaken or not being straight with you.
The 20% minimum on a first property is the most relevant number for most buyers. On a AED 1.5 million apartment, that's AED 300,000 upfront before you factor in the 4% DLD transfer fee (AED 60,000), agent commission (AED 30,000), and any other costs. Total cash required to close on a AED 1.5 million property with a mortgage is roughly AED 420,000 to AED 450,000. That's the reality, and any financing guide that doesn't say this clearly is doing you a disservice.
Robert Kiyosaki, author of Rich Dad Poor Dad and a well-known voice on real estate investment strategy, has written extensively about the difference between leverage and overextension. Using a mortgage to acquire an asset that generates income is leverage. Stretching to buy an asset you can't comfortably service is overextension. The distinction matters enormously when interest rates move, and in the UAE they have moved meaningfully over the past few years.
Key mortgage facts for buyers in Dubai:
- Minimum down payment for first property (expats and nationals): 20% up to AED 5 million
- Minimum down payment above AED 5 million: 30% for any buyer
- Second property minimum: 35% regardless of value
- Non-resident minimum: 50% of purchase price
- DLD transfer fee: 4% of purchase price, not mortgageable, paid separately
- Agent commission: typically 2% on the buy side, paid by buyer
- Total cash required on AED 1.5M first property with mortgage: approximately AED 420,000 to AED 450,000
- Mortgage interest rates in early 2026: 4.5% to 5.5% depending on bank and product type
- Maximum mortgage tenure: 25 years for expats, 30 years for UAE nationals
- Maximum age at end of mortgage term: 65 for expats, 70 for UAE nationals
Rent-to-Own Schemes: What They Are and When They Make Sense
Rent-to-own is a financing structure that occasionally appears in the Dubai market and tends to generate a lot of excitement when it does. The basic idea is straightforward: you rent a property for an agreed period, and a portion of each rental payment is credited toward the eventual purchase price. At the end of the rental period, you have the option — sometimes the obligation — to buy the property, with the accumulated credits reducing the amount you need to finance.
In theory, this allows someone with no down payment saved to gradually build up equity through rental payments rather than needing a lump sum upfront. In practice, the structure is less common in Dubai than the marketing around it suggests, and the terms of the deals that do exist vary enormously.
Some rent-to-own schemes in Dubai have been offered by developers on specific projects, typically where the developer wants to move inventory and is willing to structure a creative deal to do it. Others have been offered by individual landlords or through specialised financial intermediaries. The key things to examine in any rent-to-own proposal are:
- What percentage of each rental payment is credited toward the purchase price, and is that in writing
- What purchase price is locked in at the start, and how does it compare to current market value
- What happens to your accumulated credits if you decide not to buy at the end of the term
- Who holds the title during the rental period and what your legal protections are
- Whether the final purchase requires additional mortgage financing and whether you'll qualify at that point
Andrew Baum, professor at the University of Oxford's Said Business School and author of Real Estate Investment: A Strategic Approach, has noted that creative financing structures in real estate markets often shift risk from seller to buyer in ways that aren't immediately obvious. Rent-to-own arrangements deserve particular scrutiny on this point because the buyer is committing to a future purchase at a price set today, which may or may not reflect market conditions when the purchase option actually arrives.
Rent-to-own considerations:
- Credit percentage: typically 20% to 30% of monthly rent credited toward purchase, varies by deal
- Price lock-in: advantageous if market rises, potentially unfavorable if market falls
- Legal title: usually remains with seller or developer until final purchase completes
- Default risk: losing accumulated credits if you miss payments or can't complete the purchase
- Availability: genuinely limited in Dubai, less common than marketing suggests
- Best suited for: buyers with stable income but limited savings who have a specific property in mind
- Not suitable for: buyers who may need to relocate or whose income is variable
- Always get independent legal review of a rent-to-own contract before signing anything
Developer Incentives and Waived Fees: How They Reduce Upfront Costs
Even when a true zero-down-payment deal isn't available, developers regularly offer incentives that meaningfully reduce the total upfront cash required. These are worth knowing about because they can make a significant difference to affordability even if they don't eliminate the down payment entirely.
The most valuable incentive in the Dubai market is the DLD fee waiver. The Dubai Land Department transfer fee of 4% is one of the biggest upfront costs in any property transaction. When a developer offers to cover this fee on an off-plan purchase, they're effectively reducing your upfront cash requirement by 4% of the purchase price. On a AED 1.5 million unit, that's AED 60,000 back in your pocket — not nothing.
Other common developer incentives in the current market include:
- DLD fee waiver: developer pays the 4% transfer fee on your behalf, saving 4% of purchase price
- Zero agent commission on off-plan: developer pays the agent, buyer pays nothing
- Free furniture packages: value AED 50,000 to AED 150,000 on mid-range units, eliminates setup cost
- Post-handover payment plans: defer 30% to 50% of the price until after you receive keys
- Guaranteed rental returns: developer guarantees a rental yield for 1 to 3 years post-handover
- Service charge waivers: some developers cover service charges for 1 to 5 years after handover
- Extended payment periods: 5 to 10 year payment schedules that reduce monthly commitment
- Flexible booking fee structures: some projects accept as little as 5% to book and reserve a unit
- Price lock guarantees: protection against price increases during the construction period
- Free parking allocation: eliminates a cost that can reach AED 30,000 to AED 50,000 in some buildings
Not all of these incentives are as valuable as they look. A guaranteed rental return, for example, is only as good as the developer's financial standing — if the developer runs into trouble during the construction period, that guarantee may not be honoured. A furniture package sounds attractive until you realise the furniture is budget quality and you'd replace it anyway. Evaluate each incentive on its actual cash value rather than its marketing appeal.
You can see which current projects come with fee waivers and other incentives on our property launches page, where listings are updated regularly with the current offer terms.
Using Existing Property Equity to Fund a New Purchase
This option doesn't apply to first-time buyers, but it's one of the most underused financing tools for existing property owners in Dubai who want to expand their portfolio without liquidating savings.
If you already own a property in Dubai with built-up equity, you may be able to release some of that equity through a mortgage equity withdrawal or a top-up loan, and use those funds as a down payment on a second property. This allows you to use the growth in your existing asset to fund the acquisition of a new one without needing fresh cash.
The mechanics work like this: if you own a property currently worth AED 2 million and your outstanding mortgage balance is AED 800,000, you have AED 1.2 million in equity. Depending on your bank and your financial profile, you may be able to borrow against a portion of that equity — typically up to 70% of the property value less the outstanding mortgage — and use the released cash for your next purchase.
The numbers on a second property purchase are more demanding. The minimum down payment for a second property is 35% regardless of value, so on a AED 1.5 million second purchase you need AED 525,000 as a minimum before other costs. Using equity release from your first property to fund part or all of that is a legitimate and commonly used strategy.
Our mortgage services team can walk you through whether equity release makes sense for your specific situation, what the banks will currently lend against your existing property, and how to structure the financing on a second purchase efficiently.
Equity release considerations:
- Available to existing UAE property owners with built-up equity
- Typical maximum borrowing: 70% of current property value minus outstanding mortgage
- Released funds can be used as down payment on a new property
- Second property minimum down payment: 35%, higher than first property requirement
- Interest applies on the released equity at current mortgage rates (4.5% to 5.5% in early 2026)
- Property valuation required by the bank before equity release is approved
- Combined debt service on both mortgages must meet bank affordability criteria
- Rental income from existing property can be counted toward affordability assessment by some banks
- Best suited for: existing owners who have seen capital appreciation and want to reinvest it
- Risk: if property values fall, negative equity on the first property affects borrowing capacity
What to Realistically Expect and How to Plan
Let's be direct about something that doesn't always get said clearly in property financing content.
There is no free lunch in the UAE property market in Dubai. Any model that reduces or eliminates the traditional requirement for a down payment means that the cost will simply be shifted elsewhere. The key is not to avoid these models but to understand them before making a decision.
The most sensible option for a first-time buyer with limited savings in Dubai at the moment is off-plan with a developer payment plan and a Dubai Land Department fee waiver. The former allows entry into a property with a 5% to 10% down payment. The latter waives the highest ancillary cost. The former can be anticipated over time. It is not free, but it is a lot easier than the traditional mortgage route on a ready property.
The sensible advice for those with savings but not enough for a full deposit for a mortgage is generally to consider both options—off-plan with a developer payment plan and a mortgage on a ready property—and weigh up the costs using concrete numbers on the properties in question. The decision should be made on the basis of the cost of ownership over five years rather than cash costs.
The sensible advice for those with no savings is to save up the deposit before buying. It is foolish to buy a property with no savings. It leaves one vulnerable to cost escalations, market fluctuations, and income interruptions. It eliminates the positive effects of early entry.
If you want help working through the real numbers on any of these structures for a specific property or budget, our team covers financing options alongside our property search service. Reach out and we'll take it from there.
