A First-Time Homebuyer’s Guide

In a nutshell, off-plan properties are bought before or during construction, often directly from a developer, whereas ready properties are completed homes you can move into immediately. The differences:

• Price & Payment: Off-plan typically offers a lower price or smaller upfront costs (e.g. 10-20% down now, then phased payments) and developer incentives, but you’ll wait for the project to finish (1-3 years usually). Ready requires paying the full price now (via cash or mortgage) plus transfer fees, but you get the home right away.

• Risk & Reward: Off-plan carries the risk of construction delays and you’re buying based on plans, not a physical unit. The reward is potential price appreciation by completion (and a brand-new unit). Ready is low-risk – you see what you get – and you can start using or renting the property immediately, which is a reward in convenience (and instant rental income for investors).

• Ideal for: Off-plan can be ideal for first-time investors or those not in a rush to move, looking to capitalize on developer deals and future growth. Ready is ideal for first-time end-users who need a home now or investors who want to collect rent right away. Many first-timers in Dubai end up buying off-plan because of the flexible payment plans, but plenty also choose ready for the certainty. It comes down to your personal timeline and financial situation. (Refer to our detailed sections above on off-plan vs ready for more insights.)

### 3. How much down payment do I need as a first-time homebuyer in Dubai?
For your first home purchase, the UAE Central Bank mandates a minimum down payment based on the property price and your residency status:

• Expats: At least 20% of the property value for properties priced ≤ AED 5 million. (If property > AED 5M, minimum 30% on the portion above AED 5M.)

• UAE Nationals: At least 15% down for ≤ AED 5M (25% above AED 5M).
  These are minimums – you can always put more down to reduce your loan. Note that the down payment must come from your own funds (banks will not finance this part). You’ll typically pay an initial 10% at the time of signing the sale agreement (for a resale) or booking an off-plan unit, and the remainder of the down payment when you transfer or as per construction stages. Additionally, keep in mind the closing costs (~7-8%) which are on top of the down payment (for DLD fee, agent commission, etc.engelvoelkers.com). First-time buyers under the new DLD programme might get some relief (like paying the 4% fee in installments), but you still need to have the minimum down payment by regulation. So if you’re an expat buying a AED 1M property, prepare ~AED 200k for down payment, plus ~AED 70-80k for fees.

Aside from the property price, budget for the following upfront costs:

• DLD Transfer Fee: 4% of purchase price (plus AED 580 admin)engelvoelkers.com. This is like a property transfer tax paid to Dubai Land Department.

• Real Estate Agent Commission: Typically 2% of purchase price (+5% VAT)engelvoelkers.com. (Not applicable if buying most off-plan direct, since developers pay agents on new sales.)

• Mortgage Costs: If using a loan, around 1% of loan amount as a bank arrangement fee, ~AED 3k for valuation, and 0.25% of loan for mortgage registration at DLD. For example, on a AED 800k loan, total ~AED 11-12k in loan-related fees.

• Conveyancing or Legal Fee: ~AED 5k–10k if you hire a conveyancer to handle paperwork (optional but recommended for ease).

• Miscellaneous: Ejari fee (if you’re going to rent it out) AED 220, DEWA connection (for a new property) AED 2k (apartment deposit) or AED 4k (villa) – these are refundable deposits for utilities. If buying in a new project, there might be an Oqood fee (off-plan registration) – essentially the 4% DLD fee, sometimes collected as Oqood during construction. Some developers also charge a small admin fee at handover (few hundred dirhams).
  There aren’t really “hidden” costs, but the biggest mistake first-timers make is forgetting to account for the Dubai Land Department 4% fee and agent commission, which together are ~6% of price. Always factor those in. On an ongoing basis, remember you’ll have annual service charges (vary by property, e.g., could be AED 15–20 per sqft/year for an apartment) and of course, if you have a mortgage, the bank might require home insurance (a few hundred dirhams a year) and life insurance. We’d say a safe estimate: have roughly 8% of the property price saved for all upfront costs (so if home is AED 1M, ~80k for fees), plus your down payment amount.

Yes, mortgages are widely available to first-time buyers in Dubai, both expats and UAE nationals. Key requirements and info:

• Deposit: As above, you need at least 20% (expat) or 15% (local) of the property price as down payment for your first property. The bank will finance up to 80% (expat) or 85% (national) of the value.

• Income & Job: Most banks require a minimum monthly income (e.g., AED 10k for many, though some have products for 7k+ if other factors are strong). You should be employed for at least 6-12 months with your current employer (if new to job, some banks may be cautious unless you have a longer total work history). If self-employed, typically need 2 years company financials.

• Credit History: If you’re UAE resident, banks will check your credit score (from AECB). A good score (usually 700+ is considered decent) and no history of bounced cheques or big delinquencies is needed. They’ll also look at existing debts. As a rule, your total monthly debt obligations shouldn’t exceed 50% of your income.

• Documents: Passport, visa, Emirates ID, salary certificates, bank statements for last 3-6 months, and any existing loan/credit card statements. If non-resident, some banks lend but criteria are stricter (often 50% max Loan-to-Value and higher rates).

• Interest Rates: At present (2025), rates range roughly 3-5% for good profiles (fixed for 1-5 years then variable) As a first-time buyer, you might access special promotions (some banks have slightly lower rates or fee waivers for first-time clients, or tie-ups via the First-Time Buyer programme for better terms).

• Process: It’s wise to get a pre-approval from a bank before you go house-hunting, so you know your budget. Once you find a property, the bank will do a valuation of it. They will finance the lower of sale price or valuation – occasionally a valuation comes a bit low, in which case you’d need to cover the difference or negotiate price down. After that, at transfer, the bank issues a manager’s cheque for the loan amount to the seller, and you pay your portion. The bank then gets a lien on the property (the title deed will mention the mortgage).
  In short, if you have stable income, some savings for down payment and fees, and a decent credit record, you should be able to get a mortgage in Dubai. Shop around with a few banks or use a mortgage broker to find the best deal. And remember, you can choose between conventional mortgages or Islamic (Sharia-compliant) mortgages – the latter use profit rates instead of interest but effectively similar cost, offered by Islamic banks.

Yes, indeed – Dubai has recently rolled out the First-Time Home Buyer Programme (launched mid-2025) to support new entrants in the property market. Under this initiative:

• Eligible first-time buyers (UAE residents, never owned in Dubai before, property under AED 5M) can register and receive a First-Time Buyer certificate/QR code.

• This grants exclusive benefits such as priority access to new off-plan launches, meaning you can book units before the public. You also get developer discounts, flexible payment plans, and even installment options for paying fees. For example, some developers offer reduced down payments or a fixed discount (like 2-5% off the price) for first-timers. DLD also worked with banks to provide special mortgage rates and fee waivers for first-time buyers who go through the program.

• Another incentive relevant to many is the Golden Visa: buying property worth AED 2M or more qualifies you for a 10-year residency visa. This isn’t first-time-buyer exclusive, but it’s a huge draw for those who plan to live in Dubai long term. There are also smaller investor visas (used to be 3-year or 5-year visas for lower amounts like AED 750k and AED 1M) – rules evolve, but the Golden Visa is the headline perk now.

• Developers and banks sometimes run their own promotions targeting first-time buyers – e.g., lower booking fees, free furniture packages, or help with closing costs. Keep an eye during festive seasons or Expo-like events – we saw some offers where developers paid the 4% DLD fee on behalf of the buyer (effectively a 4% savings).

Overall, 2025 is a great time for first-timers because the market is acknowledging your importance. By registering with DLD’s programme, you essentially unlock a VIP status as a new buyer, which can ease both your financial outlay and the buying process (through priority launch access and partnered bank perks). We recommend all first-time eligible buyers to take advantage of it – it’s free to register and could save you money and give you an edge in acquiring a prime property.

The process in Dubai is relatively straightforward and typically goes as follows (for a resale ready property – off-plan is similar except transfer is replaced by a handover):

1. Search & Offer: You (often with an agent’s help) find a property you like and put in an offer. There may be some negotiation with the seller until a price is agreed.

2. Agreement (MoU): Both parties sign a Memorandum of Understanding (contract for sale). This is usually the standard Form F from RERA. At this time, the buyer usually pays a 10% deposit to secure the deal. This deposit is held in trust (often by the brokerage or conveyancer) and is refundable to the buyer if the seller defaults, but forfeited to the seller if the buyer backs out without cause. In off-plan, instead of an MoU, you sign a Sales Purchase Agreement (SPA) with the developer after paying a booking fee.

3. No Objection Certificate (NOC): For secondary sales, the seller and buyer meet at the developer’s office to obtain an NOC. The developer confirms no outstanding service fees and gives approval for transfer (usually a formality after any dues are paid). The seller typically pays a fee for NOC (few thousand dirhams).

4. Finalizing Financing: If the buyer is taking a mortgage, by now you’d have the final offer letter from the bank and the bank will be ready for transfer. If the seller had a mortgage on the property, the seller’s bank will provide a liability letter (amount to clear). The buyer’s bank will often settle the seller’s mortgage a few days before transfer (or via manager’s cheque at transfer) and then proceed with transfer once the property is clear. This part can add a bit of time (extra week or two) if there are loans involved. If it’s a cash deal (no mortgages on either side), things move faster.

5. Transfer at DLD: Both parties (or their representatives) go to a DLD Trustee Office to transfer ownership. The buyer pays the remaining purchase amount (often in manager’s cheques or through the bank if mortgage). The 4% DLD fee and a small admin fee are paid (usually by buyer, via manager’s cheque to DLD). The agent’s commission is also usually paid at this point. Buyer and seller sign the transfer form. If all is in order, the new Title Deed is issued in the buyer’s name within minutes electronically (or a paper title deed is given, depending on DLD at the time). The buyer shows proof of having the fire insurance if mortgaged (banks need that). If buyer had a mortgage, the title deed will mention the bank’s interest. After transfer, the keys are handed to the buyer. Congratulations – you officially own the property!

6. Post-Transfer: The buyer can now register for utilities (DEWA, etc.) and move in or rent out. If you’re an investor, you’ll register the tenancy contract (Ejari) when you find a tenant. Also, if eligible and planning to, you can apply for the property investor visa or Golden Visa with your new title deed.

The whole process timeline can range from 2-6 weeks for a ready property sale. Off-plan purchases can be quicker upfront (you can book and sign SPA within days), but then you wait until construction completion to get the title deed; during construction you’ll be paying installments as per the schedule. Dubai’s system is quite modern – there are no escrow closings or lengthy title searches like some countries. DLD oversees everything and their blockchain-based registry is efficient. Using a trusted broker and/or conveyancer ensures all these steps happen smoothly and that your interests are protected at each stage.

The UAE Golden Visa is a special long-term residency visa (5 or 10 years) that allows foreign nationals to live, work, or study in the UAE without needing a local sponsor. Yes, one of the qualifying categories for a Golden Visa is real estate investment. Here’s how it works for property buyers:

• If you invest AED 2 million or more in UAE real estate, you are eligible for a 10-year Golden Visa. This can be one property or multiple, and it can be in any emirate (Dubai has been a popular choice). The property must be held (not sold immediately) and should be in a freehold area. Off-plan properties count too, once they are completed and worth at least 2M (developers often coordinate with DLD to get you an investor visa even during construction if you’ve paid 2M, but the Golden comes at completion).

• The Golden Visa for property owners is typically a 5-year visa renewable (some sources call it 10; essentially, property investors get a renewable long-term residency – earlier it was 5-year, but recent updates often treat it as 10-year for ≥2M; the Gulf News reference suggests 10-year at 2M, indicating rules were enhanced). It allows you to sponsor your spouse and children as well.

• The benefits of Golden Visa: You can stay outside UAE for extended periods without losing residency (normal visas get cancelled if you stay 6+ months outside, Golden doesn’t), you get the luxury of not tying your visa to an employer, and you get a UAE driver’s license, bank accounts, etc. with ease of a resident. Some additional perks have included discount schemes or special lanes in airports, but the main perk is peace of mind of long-term stay.

• How to get it: After purchasing, you’d get your title deed that shows the value. You apply through the ICA or GDRFA (the UAE immigration authorities) – Dubai has made it quite straightforward via the “Golden Visa” application on the DubaiNow app or through accredited centers. You’ll need to show the property value (an official valuation if needed), and typically that it’s fully paid (or if mortgaged, some NOC from bank and that your paid portion is at least 2M). There may be slight procedural differences, but many new buyers hire “PRO” services or ask their real estate agent for help in the Golden Visa application. It often takes a few weeks to process.
  In summary, yes – buying property can definitely secure you residency. This has been a game-changer for expat buyers, essentially rewarding you for investing in the country. Note, if you sell the property and don’t replace it with another qualifying one, the visa can be revoked (they check that you maintain the investment). There are also other investor visa options if you invest less (like AED 750k can give a 3-year visa under certain conditions, but those rules change). The Golden Visa is the most appealing due to its length and stability. So if residency is one of your goals along with owning a home, aiming for that AED 2M mark might be worthwhile. Many first-time buyers strategize around this – for instance, buying two smaller apartments whose combined value is 2M to get the visa, or one property at that value. It’s an added dimension to think about in your purchase.

Dubai’s property market has shown strong performance in recent times, and 2025 continues on a positive trajectory, making it an attractive investment overall. A few points to justify this:

• Rising Demand & Market Strength: Dubai experienced a boom in sales transactions in 2022-2024, with record-breaking deals and price recoveries in many segments. Going into 2025, demand remains robust, driven by population growth (the city’s population crossed 3.5 million and growing), economic prosperity, and Dubai’s handling of global events which increased its appeal. Market analysts expect stable or modestly rising prices in many areas, rather than any bubble-style spikes. For investors, that means potential capital appreciation is on the table, though likely at a sustainable pace.

• High Rental Yields: Compared to major global cities, Dubai offers higher rental yields – commonly 5-7% and in some cases up to 8-9% for certain property types. This outstrips cities like London, New York, Hong Kong (where yields might be 2-4%). High yields are favorable for cash-flow investors. Even after costs, you can often get a net yield of ~5% which is attractive in a low-interest rate environment. This also makes it easier to cover mortgage payments with rent.

• No Annual Property Tax: Dubai has no property tax or capital gains tax on real estate. So your rental income (aside from a small 5% VAT on commercial property rent, which doesn’t apply to residential) and any price appreciation aren’t taxed. This boosts net returns compared to many countries where property taxes and CGT would cut into your profit.

• Expo Legacy and Economic Growth: The successful World Expo 2020 has had a lasting positive effect. New business setups, more expats making Dubai home, and government initiatives (like relaxed visa rules, Golden Visas, remote working visas) are bringing more end-user demand for housing. Major projects (Museum of the Future opened, upcoming retail and tourism projects, etc.) enhance Dubai’s global stature. Historically, Dubai real estate has cycled, but the government has been proactive in implementing measures to prevent overheating (like tighter mortgage caps, residency incentives to boost end-user share, etc.). So the market in 2025 feels more sustainable and end-user driven than in some previous booms. That is good news for long-term investors.

• Currency and Safety: The UAE Dirham’s peg to the USD makes it stable, and with global uncertainty, many view Dubai as a safe haven – politically stable, high quality of life, low crime. This has led to an influx of capital from various countries. Such diversity of buyers adds resilience to the market. As an investor, buying in a place where many nationalities are interested provides liquidity and exit options.
  Of course, like any investment, there are no guarantees. Certain areas or property types might underperform (for example, luxury segment can be more volatile, or oversupply in some locations can cap rental growth). It’s important to choose wisely – that’s where consulting with real estate experts helps. But broadly speaking, buying property in Dubai in 2025 is considered a sound investment for those with a medium to long-term outlook. You gain an asset that can generate income, appreciate in value, and even confer residency benefits. Just do your due diligence on what to buy: location, developer reputation (for off-plan), quality, and don’t overstretch financially – these will maximize the chances that your investment meets your objectives.

While it’s legally possible to conduct a property transaction on your own (some buyers and sellers do a private sale), it’s highly recommended for first-time buyers to use a professional real estate agent – and a conveyancer or lawyer as well, if possible. Here’s why:

• Market Knowledge: An agent brings a wealth of market data and neighborhood knowledge. They can advise if a listing is overpriced or if there are better options. They’ll also guide you on the current market conditions (buyer’s vs seller’s market) which affects how you bid. As a newbie, it’s easy to either overpay or miss out on a good deal without that insight.

• Access to Listings: Agents often have access to off-market or pre-market listings, and they network with other agents. If you DIY, you’re limited to what’s on property portals, which may be incomplete or not up-to-date. A good agent from a reputable brokerage will ensure you see a curated list of options that fit your criteria, saving you time and effort.

• Navigating Process: The procedural steps (especially if you’ve never done them) can be confusing – from securing a No Objection Certificate to making manager’s cheques for payments, to dealing with the trustee office. An agent (and conveyancer) handles these routinely and will lead you through it. They also liaise with the seller’s side to coordinate everything. Without an agent, you’d have to figure out each step, book your own transfer appointment, prepare all paperwork correctly, etc., which is doable but leaves room for error or delay.

• Negotiation & Emotional Buffer: Buying a home can be emotional. An agent acts as a buffer between you and the seller, conducting negotiations professionally. This often results in a better outcome than direct buyer-seller negotiation, which can sometimes become adversarial or fall apart over minor issues. Agents keep the deal on track and work out solutions (like if an inspection finds issues, they negotiate repairs or price adjustments). For off-plan, an agent can sometimes get you a better unit allocation or incentives from the developer by virtue of their relationship.

• Legal Protection: A conveyancer or legal advisor will double-check contracts (though standard, they fill specifics like payment terms – errors there can hurt you). They ensure any special conditions you need are added (e.g., making the sale conditional on mortgage approval, if applicable). They’ll also handle the transfer of funds securely. This reduces the risk of any fraud or misstep. In Dubai, fortunately, the system is relatively secure and regulated, but it’s still wise to have a pro watching out for your interests.

• Cost vs Benefit: Agents charge commission (2%), but note that as a buyer, you effectively get a bundle of services: they are your consultant, negotiator, paper-pusher, and often after-sale support. Think of it as paying for an expert to avoid costly mistakes. Most first-timers feel the agent’s guidance saved them money or headaches that far exceed the fee. As for lawyers, many don’t engage one separately if the transaction is straightforward, but the conveyancing fee (~AED 5k) is a modest cost for peace of mind if you want one to oversee.

• When might you not need one: Perhaps if you’re buying from a close friend or relative and both know the process, or you yourself are knowledgeable about Dubai real estate contracts and fluent in Arabic/English legal terms – then a private sale could work. But even then, you’d likely at least hire a conveyancer for the transfer. Most savvy sellers also prefer to deal with buyers who have an agent or conveyancer, because it reassures them that the buyer will follow through correctly.

In summary, for a first-time buyer, engaging a RERA-certified real estate agent is strongly advised, and a conveyancer is an added layer of safety. Their expertise will guide you smoothly from property hunting to handing you the keys. It lets you focus on the excitement of choosing your home, rather than the nitty-gritty of bureaucracy. In our experience, those who try to DIY often realize mid-way they need help and then bring in an agent last minute – better to start with representation from day one so you get the full benefit of their advice.