Start with what you can comfortably spend
A property can be within your price range and still stretch your budget once fees and setup costs are added. Decide what you can comfortably spend, set aside a reserve, then work back to a purchase price. Keep the money needed to complete separate from the money needed to run the home.
Dubai and Abu Dhabi use different registration systems. Ask for a current, itemised statement for your purchase showing each charge, who receives it, who pays it and when it’s due. If a fee is included or waived, get that in writing and check which other charges still apply.
Allow for buying fees and getting the home ready
Depending on the purchase, you may need to pay registration and transfer charges, transaction-service fees, estate agent’s fees, legal costs and fees for any required authorisations. If you’re borrowing, ask for the lender’s full list of charges, including valuation and arrangement fees, alongside the repayment terms. Check any applicable VAT with the provider.
Then allow for inspections, repairs, furniture, utilities and setting up property management. These bills can fall due before you move in or find a tenant. An off-plan payment plan may spread the purchase price, but several other costs can arrive together at handover.
Find out what you’ll pay each year
Ask for the building or community charges for the exact property, the period they cover and any unpaid balance. Dubai Land Department’s Service Charge Index lists approved charges for jointly owned properties in Dubai. For Abu Dhabi, obtain the relevant charges and documents from the building management and the people handling the purchase.
Budget for maintenance inside the home, insurance where needed, property management, letting fees and periods without rent. A second home still costs money while it’s empty. Ask what a management quote leaves out, who approves repairs and whether there’s a minimum annual fee.
Check what the payments mean in pounds
Keep the AED amount beside each estimate in pounds, with the exchange rate, date and transfer fees used. Unless you’ve fixed the exchange rate, the pound amount is only a guide. A rate change between reserving the property and paying a later instalment can affect your budget.
For example, an AED 100,000 payment costs £20,000 at AED 5 to £1. At AED 4.5 to £1, it costs about £22,222 before transfer fees. These are example rates, not current quotes. Try the same calculation for each payment to see how much a rate change could matter.
Work out what’s left after costs and tax
Gross rental yield doesn’t tell you how much money you’ll keep. Start with the rent you expect to collect, then deduct running costs, finance payments and a reserve. Keep track of the amount you’ve invested too, so you know what any quoted percentage is measuring.
HMRC says UK residents normally pay UK tax on foreign income, with reliefs depending on eligibility. Get advice on your position and reporting obligations. Then test your budget with lower rent, an empty period and higher repair bills. You’ll have a better idea of what you can afford if things don’t go as planned.
Sources & further reading
Dubai Land Department: property sale registration and fees ↗Dubai Land Department: Service Charge Index ↗DARI: off-plan registration and payment-plan details ↗GOV.UK: tax on foreign income ↗This is general information. The linked sources were checked on 17 October 2026; rules and services can change. Confirm what applies to your purchase with the relevant authority and a qualified adviser.