Buying a $1 million (AED3.67 million) property in Dubai is more than just making a down payment — financial experts advise buyers to have AED1.25–1.6 million ($340,000–$435,000) in liquid savings before diving in.

Mike Coady, a Dubai-based financial adviser, recommends saving at least 30-35% of the property price, factoring in the minimum 20% down payment (for properties under AED5 million) and closing costs, fees, and emergency funds. Jo Phillips of Phillips & Walls Mortgage Brokers echoes this, noting that buyers must budget for about 7% of the property price in additional fees, including:

• Dubai Land Department Fee: 4%

• Agent Commission: 2%

• Mortgage Processing Fee: 0.25%

• Valuation Fee: AED2,500–AED5,000 ($680–$1,300)

Altogether, that’s around AED220,000–AED290,000 ($59,900–$78,900) in extra costs.

Buyers are also advised to keep an emergency fund of 6–12 months of mortgage payments, which for an $800,000 loan means roughly AED17,500 ($4,700) monthly — requiring a monthly income of AED50,000 ($13,600) for financial comfort.

Mortgage rates currently range from 3.99% to 5.5%, with options for fixed, variable, or Islamic financing. Buyers should avoid overleveraging and ensure that mortgage payments don’t exceed 30-35% of their net income, despite legal limits being 50%.

Furnishing and renovation for second-hand homes could cost AED50,000–500,000 ($13,600–$136,000), and expats should also consider service and maintenance fees — which vary by developer and can be billed monthly or quarterly.

Dubai’s lack of property or capital gains tax makes it appealing for investors, but buyers moving abroad may face taxation on global assets. Experts urge buyers to save consistently, use high-interest, accessible accounts, and consult a financial advisor to ensure a smooth, well-planned purchase.