The Hidden Number: How Much Cash You Really Need to Enter Dubai’s Property Market
During recent periods, it has been seen that with the rise in prices of renters in Dubai, numerous individuals, especially young people, look to purchase property, considering it to be the most viable solution compared to paying hefty rents. On one hand, it has been analyzed that entering the property market in Dubai does not involve just securing a mortgage loan, but one must be financially prepared to pay a huge portion of expenses in cash, which was not considered by numerous individuals, according to experts in real property transactions, even with new off-plan purchase schemes introduced in the recent property market . Estimated Initial Capital Required to Buy a Home in Dubai Market analyses indicate that, on average, buyers require 25% to 30% of the value of the property in cash to kick-start the process of home-buying in Dubai. The amount in question is not constrained by the mortgage down payment; it includes a range of additional associated costs. Down Payment Share of Foreigners and Emiratis Purchasing Homes The down payment, claims Ismail Al Hammadi, CEO, IAH Group, varies between 20% of the property value in relation to foreign buyers, while it is around 15% in relation to UAE
