The idea of purchasing property without any upfront payment is very tempting. In the Dubai and broader United Arab Emirates (UAE) real-estate market, you may have seen advertisements like “zero down payment” or “buy with no money down”. But how legitimate are these offers? What does the law say? Here’s a breakdown of the situation, based on the latest regulations and practices as of late 2025.
What the Law Requires: Mortgages & Down Payments
If you are buying a property in the UAE via a bank mortgage (i.e., the bank lends you the bulk of the money and you provide a down payment), there are clear legal requirements set by the Central Bank of the UAE (“the CBUAE”). For example, under Notice No. 226/2013 on Mortgage Loans:
- For UAE nationals, first home/owner-occupier:
- Property value ≤ AED 5 million: loan up to 85 % of value → minimum down payment ~15%.
- Property value > AED 5 million: loan up to 75 % → down payment ~25%.
- For second/subsequent homes/investment property: max loan 65 % → down payment ~35%.
- For expatriates (non-UAE nationals):
- Property value ≤ AED 5 million: loan up to 80 % → down payment ~20%.
- Property value > AED 5 million: loan up to 70 % → down payment ~30%.
- Second/subsequent/investment property: loan up to 60 % → down payment ~40%.
- For off-plan properties (under construction) financed via a bank: maximum loan is 50 %, so down payment is ~50%.
Key takeaway: If you are using bank finance (mortgage) in the UAE, a zero down payment is not legally allowed under standard regulations. You must contribute a minimum percentage of the property value.
So Why Do “Zero Down Payment” Offers Exist?
Because not all purchasing arrangements are via bank mortgages. There are other routes where the standard mortgage rules may not apply directly:
- Developer payment plans: Some property developers offer “payment-in-installments” schemes or “post-handover payment plans”, where you pay the developer over time rather than rely entirely on a bank loan. Since this is not a bank-financed mortgage, the CBUAE’s mortgage down payment rules may not directly apply.
- Off-plan sales: Especially for properties under construction, developers may advertise “zero down payment” meaning you pay a very small booking amount, then pay the rest in installments during construction and/or after handover. But even then, you might still need to pay certain upfront fees (see below).
- Special schemes: There may be government or employer-linked programmes offering more favourable financing for nationals or staff, but these are the exception rather than the rule.
Therefore, “zero down payment” is possible—but only under very specific conditions, and typically not when you are going through a standard bank mortgage for a ready/resale property.
What You Should Watch Out For
Even when a property is advertised as “zero down payment”, there are important caveats and risks:
- Hidden or deferred costs: Just because you don’t pay a big down payment up-front does not mean you pay nothing. Some schemes require you to pay the 4 % transfer fee (in Dubai) for the Dubai Land Department (DLD) or other registration fees.
- Delayed payments / post-handover: Many of these offers involve paying after completion of construction or handover. That means you might be locked into a longer timeframe. If the project is delayed, you bear that risk.
- Higher total cost: Some developers offering “zero down payment” deals may increase the selling price or embed hidden finance charges to compensate. Make sure you calculate the total cost, not just the upfront.
- Developer risk: If you’re buying off-plan or paying in instalments to a developer (rather than through a bank mortgage), you’re exposed to the risk of project delays, developer insolvency, or changes in market value.
- Not all properties/locations qualify: Prime locations or ready homes rarely have genuine zero-down mortgage options. These offers are more common in off-plan developments or emerging areas.
- Legal clarity and documentation: Always get everything in writing. The payment plan, instalment schedule, handover date, rights in case of delay—all must be clearly defined. Legal advice is recommended.
Implications for Buyers from Pakistan (or other countries)
Since you’re based in Karachi, here are some additional points to consider:
- Currency/transfer risks: If you’re paying from abroad, currency exchange and international transfer costs matter. Some buyers also use credit cards for initial payments—this may attract scrutiny both in UAE and your home country. For example, the article noted Indian buyers using credit cards for down-payments and facing issues.
- Legal/regulatory compliance: Ensure you understand both UAE rules and your home country’s rules about overseas property investment or large fund transfers.
- Residency / visa implications: Some investment options are tied to residency programmes (e.g., Golden Visa in the UAE). For instance, the UAE removed the minimum down payment requirement for certain Golden Visa-eligible investments.
- Exit strategy: Especially when buying off-plan overseas, consider how easy it will be to sell the property later, what the resale market is like for that area, and any restrictions.
Summary Table
| Scenario | Down Payment via Bank Mortgage | Zero Down Payment Possible? |
|---|---|---|
| Ready/resale property via bank loan | Yes, minimum ~15-30% depending on status & value | No (not when using standard bank mortgage) |
| Off-plan property financed by bank | Yes, down payment ~50% as per off-plan rule | Very unlikely under bank finance |
| Off-plan property with developer plan (no bank mortgage) | N/A | Yes, sometimes marketed as “zero down” depending on developer & schedule |
| Special scheme (nationals / employer) | Possibly lower down payment | Rarely truly zero; check details |
Final Thoughts
If you’re asked, “Can you buy property in the UAE with no down payment?”, the honest answer is: not in the typical mortgage arrangement. Under UAE law, banks cannot give you a standard mortgage with zero contribution. However, creative financing via developers or special plans can allow you to minimise or defer your upfront payment—but they come with trade-offs and risks.
If you’re considering such an offer:
- Verify whether the financing is via a bank mortgage or a developer payment plan.
- Check the minimum required upfront payment under the actual contract.
- Read the fine print: payment schedule, handover date, fees, escalation clauses.
- Evaluate the developer’s reputation, project track record and completion risk.
- If you’re an overseas buyer (e.g., from Pakistan), check currency/transfer issues and your home country’s rules.
- Consider the total cost and whether you’re comfortable with deferred liabilities.
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