How Much Do You Really Need to Buy a $1 Million Property in Dubai?

When I arrived back in Dubai over 20 years ago, the skyline looked very different. The Palm was still a rumour. Downtown was a construction site. And people still asked if the UAE was “safe” to live in. Fast forward to today, and Dubai is a global city. Safe, vibrant, tax-efficient, and filled with opportunity.

But with that growth comes complexity. Especially when it comes to property ownership.

Recently, I was asked by Arabian Business to share my views on what it really takes to buy a $1 million property in Dubai, not just financially, but strategically. And while the article was a fantastic introduction, I wanted to expand on that conversation here, in my own words, and with full transparency. Because buying a property is not just a transaction. It’s a long-term commitment that touches your lifestyle, family plans, career, and future financial freedom.

Why This Matters

Most expats assume that if they have the down payment, they’re ready to buy. They’re not. If you buy too early, too stretched, or without the right planning, it can hold you back for years. I’ve seen people forced to sell at a loss, miss out on global investment opportunities, or worse, run into serious cashflow issues during job changes or market corrections. And yet, done properly, real estate in Dubai can be a powerful wealth builder. No capital gains tax, no property tax, high rental yields, and incredible long-term potential. The difference is in the structure, timing, and financial discipline.

What's The True Cost Of Buying A $1M Home In Dubai?

A $1 million home in Dubai (approx. AED 3.67M) comes with far more than a 20% deposit. Here’s the full picture:

Total recommended savings: AED 1M–1.5M+ before you even get the keys.

Mortgage Basics: Avoid The Trap Of Overborrowing

Most buyers ask, “How much can I borrow?” I ask, “How much can you safely afford to repay?”

Let’s say you borrow $800,000 (AED 2.94M) at 5% interest over 25 years. That’s a monthly repayment of ~AED 17,500.

My rule of thumb: Mortgage repayments should not exceed 30–35% of your net income. So if you’re earning AED 50,000 per month, great. If not, don’t stretch.
Banks will let you go up to 50%. But just because they allow it doesn’t mean you should.

Your income should still leave room for school fees, retirement saving, insurance, and lifestyle costs, not just bricks and mortar.

Off-Plan: Seductive, But Dangerous

Off-plan properties are tempting with lower entry costs, developer payment plans, and shiny brochures. But tread carefully. Between 2014 and 2021, many off-plan buyers ended up in negative equity due to delays, price drops, and even legal battles. If you're not ready for uncertainty, avoid it. Use off-plan as a strategy only if you can afford delays, understand the developer’s track record, and don’t need rental income immediately.

Closing Costs and the Hidden Expenses

Buyers often underestimate the ‘extras’. Here’s what to expect:

• DLD Transfer Fee: 4%
• Agency Commission: 2%
• Mortgage Processing Fee: 0.25% of loan
• Valuation Fee: AED 2,500–5,000
• Legal Fees: AED 5,000–10,000 depending on lawyer

For a $1M property, expect around AED 220,000–290,000 in upfront fees And all before renovation, furniture, or maintenance.

How to Save for a Property (The Smart Way)

If you’re 1–5 years out from buying, here’s my personal saving strategy:

1. Pay Yourself First
   Set up an automatic transfer into a property fund and aim to save 20–30% of your monthly income. Make it a consistent habit, no matter what.
2. Keep It Liquid (If Buying Soon)
   Avoid long lock-ins and use high-interest, low-risk accounts for your savings. Don’t put your deposit at risk by investing in volatile markets.
3. Use Investment Portfolios (If Buying 3+ Years Away)
   Invest in diversified, professionally managed funds that focus on capital preservation and low volatility. This will set you up for a safer, long-term return.
4. Get Professional Guidance
   I’ve helped clients turn 5-year plans into 3-year realities. With the right financial plan, you can shave years off your timeline and accelerate your path to homeownership.

Balancing Property with Other Goals

Many people funnel everything into the property and neglect important areas like retirement planning, insurance (life and health), education funding, and emergency savings. The result? They own a property, but nothing else. No single asset should derail your full financial plan. Property is a pillar, not the whole house.

Who Qualifies for Support or Incentives?

Short answer: not expats. There are currently no government incentives for non-Emiratis buying homes in Dubai. That’s why advice and planning matter more here than in other markets. You're on your own, unless you work with someone who knows the terrain.

If You Plan to Leave Dubai… Think Ahead

If you leave the UAE, and your next country taxes global income or assets (e.g., UK, Canada, South Africa), your Dubai property might be:

• Taxable on sale (capital gains tax)
• Taxable on rental income
• Subject to inheritance tax

Many of my clients choose to sell before becoming tax resident again This is where having a global financial adviser becomes invaluable.

Final Thoughts: This Is Your Legacy Move

I’ve seen clients do this the right way, and it transforms their wealth. I’ve also seen clients do it the wrong way, and it traps them. The difference isn’t luck. It’s clarity, structure, and guidance.

My message is simple: If you’re thinking about buying a $1M home in Dubai, don’t just focus on price per square foot. Think about your income trajectory, your career plans, your long-term residency status, your family, retirement, tax position, and your exit strategy.

Then ask yourself: Does this property support the life I want, or distract from it?

Book A Strategy Session

If this article struck a chord, let’s talk. I work with professional expats across the globe to make smart financial decisions, tailored to their real lives.

As featured in Arabian Business. Expanded with exclusive insights from Mike Coady, CEO of Skybound Wealth and 20-year Dubai resident.