Buying a home is a huge financial commitment. For the majority of people in the UAE who wish to buy a property here, it’s often challenging to save for the down payment. However, the reduction of the loan-to-value ratio for first-time homebuyers this year by the Central Bank of the UAE has simplified the process for aspiring property owners.
In March, the central bank issued a decree allowing UAE banks to increase the LTV for first homebuyers by 5 per cent for expatriates and Emiratis. This means that expatriates can borrow up to 80 per cent of the property purchase price with a 20 per cent down payment and UAE nationals up to 85 per cent and a 15 per cent down payment.
Interest rate reductions in the past few months from the US Federal Reserve and subsequently the Central Bank of the UAE have also resulted in attractive mortgage rates.
“With current LTV set at a maximum of 80 per cent for expat first homebuyers and record low interest rates, a down payment of Dh80,000 could fetch a home worth Dh480,000 with monthly mortgage repayments less than Dh2,000,” says Haider Tuaima, head of real estate research at ValuStrat, a real estate consultancy.
Property prices in Dubai have been gradually declining since September 2014, primarily because of an oversupply of units. Sales of homes priced under Dh500,000 comprised 23.9 per cent of the market in August, according to Property Monitor. Sales of homes below Dh1 million made up 52.8 per cent of August transactions.
Mr Tuaima advises homebuyers to negotiate a deal with the seller for the best price. “It’s a buyers’ market and up to 20 per cent price discounts can be achieved. This will help mitigate against purchase and mortgage costs.”
How one expat saved for his down payment
Within the first few months of arriving in the UAE in 2013, Sabarrish Srinivisan and his wife, Kinnari Thakkar, realised that paying rent was not beneficial for their financial futures. They compared paying equated monthly instalments against rent and realised they should buy a property rather than spend their hard-earned money on rent.
“I was in a company where I had good growth opportunities and long-term potential. This job security was crucial in helping me decide that it would be worth getting a property in the UAE,” says Mr Srinivisan, who is a marketing manager with a healthcare and optical retail chain.
Job security was crucial in helping me decide that it would be worth getting a property in the UAE
In 2014, the couple reviewed their lifestyle expenses to save enough for a down payment on their first home in the UAE. They did not buy a car and used the Dubai Metro instead, which resulted in massive savings. The couple also lived in a rented studio for two years and then a one-bedroom apartment for another two years, ensuring that their rent never exceeded 20 per cent of their total income.
"We also set aside the amount of money we would have paid as taxes in our home country in National Bonds and another savings account. We had a policy of never taking any other loans or using the credit card beyond its limit. Four years of dedicated savings and investment allowed us to save enough for the down payment," Mr Srinivisan, 32, tells The National.
In 2017, the couple purchased a two-bedroom apartment worth Dh1.4 million in Dubai Marina. The monthly mortgage instalment, building maintenance cost and insurance costs are equivalent to what they would have paid as rent for the same property, he adds.
Mr Srinivasan recommends aspiring homeowners keep their down payment savings in a short- or mid-term savings account or in National Bonds. “Make a plan and stick to it," he says. "It is very easy to splurge or dip into savings if it is easily available. Put it aside, keep adding on to it and let it grow.”
The homeowner adds that in order to save, you need every family members' support to identify your priorities, as well as writing down all monthly expenses to identify areas where you are wasting money.
Mr Srinivasan also recommends choosing a rental property that is smaller than what you plan to buy, saying it will help you save more and minimise the temptation to buy too much furniture.
“Ensure you have small vacations and other comforts as part of your plan. It is important to make special moments even when on a budget,” he says.
We speak to a number of financial experts, who recommend eight ways to help you save for your down payment and ultimately buy a property in the UAE.
1. Find a good savings account
It’s important to open a savings account. You need to be strict about setting aside a set amount or percentage of your salary every month and depositing it into a dedicated savings account.
“It is worth doing some research into whether there are any favourable savings accounts available. Given the current low interest rate environment, it may be more difficult to find a savings account paying high returns, but there will be some accounts which are more beneficial to you than others,” says Richard Boyd, director at Mortgage Finder.
You could also set up a standing instruction that moves funds from your current account into a separate savings account the moment your salary is credited, says Ambareen Musa, founder and chief executive of Souqalmal.com.
However, Mr Tuaima from ValuStrat says you should be careful to never use these savings for any other purpose than the down payment.
2. Create a monthly budget
Set yourself a monthly budget that will allow you to focus on your financial priorities and keep track of your overall spending.
“Since your home down payment is one of your top priorities, you can dedicate a percentage of your income towards it, based on the amount you need to collect and the timeframe you have to collect it,” Ms Musa says.
3. Review your spending
Scrutinise your spending habits to understand where your money is going, then identify areas where you can easily make changes that will allow you to save more each month. You will have to put unnecessary spending on hold, especially on luxuries and high ticket items.
“You may have to make some cutbacks to ensure you can save the money for a down payment, without spending a lifetime slogging towards it. So, if that means you have to skip your fancy annual vacation or not upgrade your car, you should be willing to do it,” says Ms Musa.
You can also review monthly subscriptions, lower weekly shopping bills or cut down on eating out and reduce regular bills, such as changing your mobile phone package, Mr Boyd recommends.
4. Downsize your rental accommodation
Rent often accounts for the biggest monthly outlay in everyone’s budgets. “If you are currently renting, it could be worth considering downsizing or moving to a cheaper location to reduce your rental costs in the short term while you save towards your down payment,” says Mr Boyd.
5. Pay down existing debt
Get rid of your current debt such as education loans, personal loans and credit card debt. This will not only help free up your income to focus on gathering the funds for a down payment, it will also boost your credit score, lower your debt-burden ratio and ensure your eligibility for home finance in the future, says Ms Musa.
6. Sell unused items
You could sell items in your wardrobe that you no longer use. This could add to your savings pot. Also, consider selling unused larger ticket items, such as cars, furniture and electronics.
“For example, if you have multiple cars in your household, which you may not necessarily need, it could be worth selling one of these and living with less, or even selling and opting to buy a cheaper model if it’s necessary to have multiple vehicles,” says Mr Boyd.
7. Account for the extras and bonuses
If you get a bonus at work, a cash gift from a relative or earn extra money from a side hustle, you could use it to achieve your down payment goal faster. “But that also means you’ll have to resist the temptation to spend it on non-crucial wants,” cautions Ms Musa.
8. Equity release, liquidate investments
Mr Boyd says that people who own property overseas could release equity from it to raise money for their down payment. He adds that if you have invested in stocks and shares, it could also be a good idea to raise cash from these investments as some allow for penalty-free withdrawals.
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
England squad
Goalkeepers: Jordan Pickford, Nick Pope, Aaron Ramsdale
Defenders: Trent Alexander-Arnold, Conor Coady, Marc Guehi, Reece James, Harry Maguire, Tyrone Mings, Luke Shaw, John Stones, Ben White
Midfielders: Jude Bellingham, Conor Gallagher, Mason Mount, Jordan Henderson, Declan Rice, James Ward-Prowse
Forwards: Tammy Abraham, Phil Foden, Jack Grealish, Harry Kane, Bukayo Saka, Emile Smith Rowe, Raheem Sterling
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The biog
Job: Fitness entrepreneur, body-builder and trainer
Favourite superhero: Batman
Favourite quote: We must become the change we want to see, by Mahatma Gandhi.
Favourite car: Lamborghini
Aston martin DBX specs
Engine: 4.0-litre twin-turbo V8
Transmission: nine-speed automatic
Power: 542bhp
Torque: 700Nm
Top speed: 291kph
Price: Dh848,000
On sale: Q2, 2020
Ruwais timeline
1971 Abu Dhabi National Oil Company established
1980 Ruwais Housing Complex built, located 10 kilometres away from industrial plants
1982 120,000 bpd capacity Ruwais refinery complex officially inaugurated by the founder of the UAE Sheikh Zayed
1984 Second phase of Ruwais Housing Complex built. Today the 7,000-unit complex houses some 24,000 people.
1985 The refinery is expanded with the commissioning of a 27,000 b/d hydro cracker complex
2009 Plans announced to build $1.2 billion fertilizer plant in Ruwais, producing urea
2010 Adnoc awards $10bn contracts for expansion of Ruwais refinery, to double capacity from 415,000 bpd
2014 Ruwais 261-outlet shopping mall opens
2014 Production starts at newly expanded Ruwais refinery, providing jet fuel and diesel and allowing the UAE to be self-sufficient for petrol supplies
2014 Etihad Rail begins transportation of sulphur from Shah and Habshan to Ruwais for export
2017 Aldar Academies to operate Adnoc’s schools including in Ruwais from September. Eight schools operate in total within the housing complex.
2018 Adnoc announces plans to invest $3.1 billion on upgrading its Ruwais refinery
2018 NMC Healthcare selected to manage operations of Ruwais Hospital
2018 Adnoc announces new downstream strategy at event in Abu Dhabi on May 13
Source: The National
Match info
Uefa Nations League Group B:
England v Spain, Saturday, 11.45pm (UAE)
Company name: Farmin
Date started: March 2019
Founder: Dr Ali Al Hammadi
Based: Abu Dhabi
Sector: AgriTech
Initial investment: None to date
Partners/Incubators: UAE Space Agency/Krypto Labs
Company info
Company name: Entrupy
Co-founders: Vidyuth Srinivasan, co-founder/chief executive, Ashlesh Sharma, co-founder/chief technology officer, Lakshmi Subramanian, co-founder/chief scientist
Based: New York, New York
Sector/About: Entrupy is a hardware-enabled SaaS company whose mission is to protect businesses, borders and consumers from transactions involving counterfeit goods.
Initial investment/Investors: Entrupy secured a $2.6m Series A funding round in 2017. The round was led by Tokyo-based Digital Garage and Daiwa Securities Group's jointly established venture arm, DG Lab Fund I Investment Limited Partnership, along with Zach Coelius.
Total customers: Entrupy’s customers include hundreds of secondary resellers, marketplaces and other retail organisations around the world. They are also testing with shipping companies as well as customs agencies to stop fake items from reaching the market in the first place.
Tailors and retailers miss out on back-to-school rush
Tailors and retailers across the city said it was an ominous start to what is usually a busy season for sales.
With many parents opting to continue home learning for their children, the usual rush to buy school uniforms was muted this year.
“So far we have taken about 70 to 80 orders for items like shirts and trousers,” said Vikram Attrai, manager at Stallion Bespoke Tailors in Dubai.
“Last year in the same period we had about 200 orders and lots of demand.
“We custom fit uniform pieces and use materials such as cotton, wool and cashmere.
“Depending on size, a white shirt with logo is priced at about Dh100 to Dh150 and shorts, trousers, skirts and dresses cost between Dh150 to Dh250 a piece.”
A spokesman for Threads, a uniform shop based in Times Square Centre Dubai, said customer footfall had slowed down dramatically over the past few months.
“Now parents have the option to keep children doing online learning they don’t need uniforms so it has quietened down.”
T20 WORLD CUP QUALIFIER
Results
UAE beat Nigeria by five wickets
Hong Kong beat Canada by 32 runs
Friday fixtures
10am, Tolerance Oval, Abu Dhabi – Ireland v Jersey
7.30pm, Zayed Cricket Stadium, Abu Dhabi – Canada v Oman
RESULTS
5pm: Wathba Stallions Cup Maiden (PA) Dh 70,000 (Dirt) 1,600m
Winner: Samau Xmnsor, Abdul Aziz Al Balushi (jockey), Ibrahim Al Hadhrami (trainer)
5.30pm: Maiden (PA) Dh 70,000 (D) 1,600m
Winner: Ottoman, Szczepan Mazur, Abdallah Al Hammadi
6pm: Maiden (PA) Dh 70,000 (D) 1,800m
Winner: Sharkh, Patrick Cosgrave, Helal Al Alawi
6.30pm: Handicap (PA) Dh 85,000 (D) 1,800m
Winner: Yaraa, Fernando Jara, Majed Al Jahouri
7pm: Handicap (PA) Dh 70,000 (D) 2,000m
Winner: Maaly Al Reef, Bernardo Pinheiro, Abdallah Al Hammadi
7.30pm: Maiden (PA) Dh 70,000 (D) 1,000m
Winner: Jinjal, Fabrice Veron, Ahmed Al Shemaili
8pm: Handicap (PA) Dh 70,000 (D) 1,000m
Winner: Al Sail, Tadhg O’Shea, Ernst Oertel
AWARDS
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'The Lost Daughter'
Director: Maggie Gyllenhaal
Starring: Olivia Colman, Jessie Buckley, Dakota Johnson
Rating: 4/5
Killing of Qassem Suleimani
INDIA SQUAD
Virat Kohli (capt), Rohit Sharma, Shikhar Dhawan, KL Rahul, Vijay Shankar, MS Dhoni (wk), Kedar Jadhav, Dinesh Karthik, Yuzvendra Chahal, Kuldeep Yadav, Bhuvneshwar Kumar, Jasprit Bumrah, Hardik Pandya, Ravindra Jadeja, Mohammed Shami
Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
The specs
Engine: 3.8-litre, twin-turbo V8
Transmission: eight-speed automatic
Power: 582bhp
Torque: 730Nm
Price: Dh649,000
On sale: now
Results
Stage 5:
1. Jonas Vingegaard (DEN) Team Jumbo-Visma 04:19:08
2. Tadej Pogacar (SLO) UAE Team Emirates 00:00:03
3. Adam Yates (GBR) Ineos Grenadiers
4. Sergio Higuita (COL) EF Education-Nippo 00:00:05
5. Joao Almeida (POR) Deceuninck-QuickStep 00:00:06
General Classification:
1. Tadej Pogacar (SLO) UAE Team Emirates 17:09:26
2. Adam Yates (GBR) Ineos Grenadiers 00:00:45
3. Joao Almeida (POR) Deceuninck-QuickStep 00:01:12
4. Chris Harper (AUS) Team Jumbo-Visma 00:01:54
5. Neilson Powless (USA) EF Education-Nippo 00:01:56
