How much cash do you need to buy a townhouse in Dubai?

For a ready townhouse bought with a mortgage, plan for roughly a quarter of the price in cash: the down payment, the 4% registration fee and the mortgage registration. On a AED 2.7M townhouse that is about AED 653,690, before agency commission and bank fees.

1. Down paymentFor a first completed home, banks lend at most 80% of the value up to AED 5M (70% above that), so a resident pays at least 20% from their own cash: AED 540,000 on AED 2.7M.
2. Registration fee: 4%The land registration fee is 4% of the price: AED 108,000 on AED 2.7M. In most sales the buyer pays it; confirm this in the sale agreement.
3. Mortgage registration0.25% of the loan plus AED 290. On a AED 2.16M loan that is about AED 5,690.
4. Commission and bank feesAgency commission, valuation and bank processing fees are not in the figures above. Ask for each one in writing before you start, so the total holds no surprises.
5. Off-plan is differentOff-plan purchases follow the developer's payment plan, and a mortgage can cover at most 50% of the value, so the cash you need depends on the plan, not only on the price.
6. Keep a bufferLeave room for service charges, moving and furnishing. Running out of cash at transfer is costlier than waiting a month.

More guides

• What is the monthly payment on a AED 2.7M townhouse?
• 6 steps to buy a ready villa in Dubai
• 8 things to check in a villa before you pay
• End-unit or middle-unit townhouse?
• Choose the community before the home
• 5 rules for negotiating a villa price
• Documents banks ask for
• Service charges: 4 questions to ask before buying