Zero Down Payment Properties in Dubai: Pros, Cons & How to Buy

Understanding Zero Down Payment Property Schemes in Dubai

A 0 down payment property in Dubai typically refers to an offer where buyers can secure a home without making an upfront payment. These schemes may sound appealing, especially to first-time buyers, but several factors must be considered. 

In Dubai, property purchases generally fall into two categories:

• Secondary Properties: These are completed homes that are usually either purchased with a mortgage or a full upfront cash payment.  

• Off-Plan Properties: These are properties that are still in the planning phase or under construction, often featuring payment plans provided by the developer.

In this guide, we’ll consider how zero down payment in Dubai fits both categories. 

Pros of Buying Property with Zero Down Payment

The potential benefits that are often cited with buying a zero down payment property in Dubai include: 

• No large upfront savings required 

• Easier entry for first-time buyers

• Flexibility to use the money elsewhere

That said, these benefits are mostly theoretical. In practice, 0 down payment house options are usually unavailable or come with significant drawbacks. 

Cons of Buying a House with Zero Down Payment

The potential downsides of a no down payment homes can be substantial:

Not Viable For Ready Properties

For most people, it is not possible to buy a secondary market property using a mortgage with zero down payment in Dubai. This is because the UAE Central Bank regulations require expat buyers to pay a minimum down payment for a house mortgage of: 

• 20% for properties under AED 5 million 

• 30% for properties over AED 5 million 

Additionally, buyers must pay a 4% Dubai Land Department (DLD) fee and other transaction fees as part of the costs of buying a property in Dubai. No down payment homes using a mortgage are only possible for: 

• UAE nationals under certain government housing schemes

• Employees of select government-linked entities with special mortgage arrangements

For everyone else, buying a property with a mortgage with no down payment is not a realistic path. 

Off-Plan Properties: Too Good to Be True?

Some developers may advertise zero down payment property in Dubai for off-plan projects. However: 

• These are usually with obscure developers that lack a solid track record

• They often come with inflated property prices

• The projects may be in less desirable locations and projects

• There could be higher risk the developer faces difficulties or uncertainty about build quality 

In general, for off-plan property purchases it can be far wiser to choose reputable developers offering 10%-20% down payment structures with transparent terms. 

Using Personal Loans: High-Risk Strategy

Some buyers consider taking out personal loans to cover their down payment. This technically could enable you to borrow the complete purchase cost and get a zero down payment property in Dubai. However, it is likely to be against the lenders terms and conditions and could lead to:

• High-interest repayments that add to your total borrowing cost

• Increased monthly liabilities and greater financial stress

• Reduced likelihood of mortgage approval due to debt-to-income constraints

In short, this is not a recommended route.

Ways to Buy Property in Dubai with No/Minimum Down Payment

If you’re exploring how to buy a home with no down payment, there are a few options to consider that can reduce the down payment, although they are unlikely to eliminate it completely. 

Developer-Backed Payment Plans

Some developers offer post-handover payment plans where the majority of the price is paid in installments after moving in. However, most of these still require a 5%–20% downpayment and some payments during construction: 

Rent-to-Own Options

Rent-to-own allows tenants to apply a portion of their rent toward eventual ownership. While appealing in theory, these schemes:

• Require long commitment periods

• Usually apply to select units only

• Offer less value than traditional buying

Co-Investing or Joint Purchases

Buying with a family member or friend can reduce the burden of the down payment. However, this requires legal agreements and full alignment on exit strategy.

Off-Plan Projects with Flexible Installment Plans

Some established developers offer 10/90 or 20/80 plans where you pay a small amount upfront and the rest on or after handover. While not truly zero down payment, they reduce upfront costs without compromising quality or location.

Risks and Considerations Before You Commit

When understanding how to buy a home with no down payment in Dubai, its crucial you understand the full picture: 

• Are you paying above-market prices for convenience?

• Can you manage monthly payments without strain?

• Is the developer reliable, proven and well-funded?

• Are there hidden fees or restrictive terms that could cause you problems?

Always seek professional advice and conduct thorough research before committing to a deal that appears too easy or too good to be true. 

Developers & Projects Offering 0% Down Payment in 2025

As of 2025, there are limited instances of zero down payment property in Dubai, and they are mostly found in marketing campaigns for:

• Budget or less-desirable developments

• Unproven or new-to-market developers

• Projects with long delivery timelines or low demand

In contrast, leading developers like Emaar, Sobha, and Nakheel typically require a 10%–20% initial payment, which provides far more assurance on project quality and resale value. 

Conclusion

While the idea of a zero down payment property in Dubai can seem attractive, it is not a practical or beneficial option for most buyers. Regulatory requirements, financial risk, and project credibility all make no down payment homes more of a marketing hook than a reality.

Instead of searching for 0 down payment houses, we recommend: 

• For off-plan properties looking for flexible payment plans with low initial deposits 

• Choosing reputable developers with a proven track record

• Saving for the minimum down payment for a house when buying a ready property using a mortgage

• Setting realistic budgeting that accounts for all costs, not just the entry point.

If you’re looking to invest wisely, speak to an Investment Consultant at Engel & Völkers to access verified listings and flexible plans that align with your long-term goals.