Buying your first home is exciting, but it can also feel overwhelming. Between deposits, mortgages and hidden fees, many first-time buyers don’t know where to start.
The Dubai Land Department's first-time homebuyer initiative, launched in July, is aimed at making the process more attractive and accessible. It offers priority access to off-plan homes worth up to Dh5 million, flexible payment plans and preferential mortgage terms.
To help simplify the journey to becoming a first-time homeowner in the UAE, The National spoke to several experts who share practical advice for first-time buyers.
Have all your documents in place
Requirements vary by bank, but first-time buyers typically need to provide proof of identity, including passport, UAE residency visa and Emirates ID. Salary certificates or proof of income, as well as bank statements, will be required, says Valerie Morshchagina, the senior team lead at mortgage adviser Huspy.
“Non-residents may need to submit additional documents such as overseas income proof and credit reports,” she adds.
Determine how much you can borrow
Start by looking at your income, existing debt and monthly expenses, says Morshchagina.
“Banks assess your fixed monthly income and existing debts to calculate your debt-to-income ratio. In the UAE, your total monthly obligations, including the mortgage, must not exceed 50 per cent of your fixed monthly salary,” she says.
“Your credit score also helps lenders gauge your repayment reliability and gives lenders a clear picture of your financial health, and help determine how much they’re willing to lend.”
Find a real estate agent
Work with an experienced and ethical agent who can guide you transparently through the process and help you avoid common pitfalls, says Alois Kugendran, chief executive of real estate company Amaya & Co.
Morshchagina agrees, saying: “The right partner makes all the difference.”
It is worth noting that, as a buyer, you do not need to work with one agent exclusively.
Decide on the kind of property
To begin your property search, list your non-negotiables – price, size, location, style – and rank them, advises Kugendran. “This clarity helps you focus on properties that tick the right boxes emotionally and logistically.”
First-time buyers will also need to decide early whether they want an off-plan or ready property.
“Off-plan often means lower upfront costs and flexible payment plans, but comes with a longer wait. Secondary properties are move-in ready but require a larger payment upfront,” explains Morshchagina. “There’s no right answer, only the right fit for your lifestyle, timeline and long-term plans.”
Choosing the right location is also crucial, and consider long-term lifestyle and resale value, says Kugendran.
“It’s also important to understand the difference between freehold and leasehold ownership,” he says.
In the UAE, freehold ownership gives buyers full rights over a property and the land it sits on, while leasehold means purchasing the right to use the property for a fixed term, typically 30 to 99 years.
Understand the full cost
Kugendran stresses the importance of budgeting properly. “It’s crucial to understand your full budget, including the down payment, closing fees and ongoing costs,” he says. “If you’re financing, speak to a trusted mortgage broker early or ask your agent to recommend someone who can secure the best rates.”
Most banks require a down payment of at least 20 per cent for residents, explains Morshchagina.
“So for a property priced at Dh1.5 million, you’ll need around Dh300,000 upfront. On top of that, set aside about 7 per cent for a range of government fees across the UAE, agent commission and bank costs.”
The government fees and commissions vary across each emirate, with property transfer fees ranging between 2 and 5 per cent. That, along with charges such as mortgage registration, title deed fees and agent commission can easily add up to about 7 per cent of the purchase price.
Down payment rates are different for UAE nationals and expats.
“For UAE nationals, the minimum down payment is 15 per cent for properties up to Dh5 million, and 25 per cent above that. Expats need to put down at least 20 per cent for properties under Dh5 million and 30 per cent for higher-priced homes,” she says.
Use online tools and expert advice
Mohamad Kaswani, the general manager of international markets and partnerships at Property Finder, highlights the value of digital tools: “At Property Finder, we provide mortgage calculators and affordability calculators to help buyers understand their financial capacity upfront. This saves time and reduces disappointment by focusing on properties within reach.”
Morshchagina of Huspy adds: “We built a mortgage eligibility calculator that gives you a personalised figure based on current bank criteria, helping you shop with confidence.”
Compare mortgage options
Kaswani says many first-time buyers he has dealt with can qualify for a larger mortgage than they initially anticipate.
“With more than 100 mortgage configurations available in the UAE today, navigating the process can be confusing, and that’s why nearly 50 per cent of homebuyers simply go to their bank to apply for a mortgage. What many people don’t know is that the best mortgage products are often at a different bank,” he points out.
There are different mortgage types available in the UAE, including fixed-rate, variable-rate, and Islamic (Sharia-compliant) mortgages.
“Fixed-rate mortgages give you stable monthly payments for a set period, while variable-rate mortgages fluctuate based on the Emirates Interbank Offered Rate (EIBOR). It’s important to understand how changes in EIBOR can affect your payments,” advises Morshchagina.
Kugendran adds: “Offset mortgages, where your loan is linked to a savings account, can reduce the interest you pay. Interest-only mortgages let you pay just the interest for an initial period, lowering early payments but increasing costs later.”
He advises buyers to “look beyond interest rates when comparing offers – consider processing fees, early settlement penalties, insurance costs and flexibility.”
Get mortgage pre-approval
Real estate agents and sellers always favour buyers with a mortgage pre-approval in hand, says Kaswani. “It demonstrates credibility, gives the buyer more negotiation power, and increases the chances their offer will be accepted.”
Many buyers start their mortgage applications before choosing a property, which leads to a smoother buying experience, he adds.
Morshchagina warns: “A key mistake is not speaking to a mortgage adviser before starting your property search. Without understanding your borrowing power or the process, you risk delays and financial surprises.”
Where to buy
First-time buyers are gravitating towards townhouses and villas in the Dh1.5 million to Dh4 million range, says Kugendran, who adds that in Dubai, communities such as Damac Hills 2, Arabian Ranches 3, Dubai Hills and Al Furjan are among the popular choices.
Apartments remain popular too, he adds, particularly in Dubai Marina and Business Bay for budgets between Dh1 million and Dh2 million.
In Abu Dhabi, the popular neighbourhoods are Al Reem Island, Saadiyat Island, Yas Island and Al Raha Beach.
First-time homebuyers in the UAE gravitate towards affordable, well-connected communities with strong investment potential, says Morshchagina. “Most buyers are entering the market with budgets ranging from Dh1 million to D1.5 million.”
While most first-time buyers understandably focus on affordability, it’s worth looking at the bigger picture, she adds. “Luxury demand is rising as wealthy individuals relocate to the UAE, and with nearly 9,800 millionaires expected to arrive in 2025, prime areas are only going to get more competitive,” she says.
In other words, don’t limit your search to just what seems affordable now – think long term about where value and opportunity lie.
