First time homebuyer’s guide to dubai real estate (2025 edition)

The dream of owning a home in Dubai is becoming a reality for many first-time buyers, particularly with the recent long-term visa announcements and evolving retirement laws that are attracting more residents to settle in the city. Dubai's property market in 2025 presents unique opportunities, and being well-prepared is key to navigating your journey. This guide will walk you through the essential steps of buying a property in Dubai with confidence.

Get Your Finances in Order

Before you begin the exciting journey of finding a home, you must clearly understand your financial situation to help you avoid the disappointment of finding a perfect home that you cannot afford. Knowing exactly how much you can comfortably spend from the start will give you peace of mind when talking to real estate agents and sellers, and it allows you to negotiate with real confidence.

List Your Must-Have Property Features

Understanding what you truly need in a home, compared to what you want, makes your property search much easier and more focused. First, pick the basic type of home that best suits your everyday life. Would you rather have a spacious villa or townhouse in a friendly, family-focused community like Arabian Ranches or Dubai Hills Estate, which offers ample space both inside and out? Or would an apartment in Downtown Dubai or Dubai Marina be better for you, putting you right in the heart of all the action?

Once you've decided on the type of home, create a list of your absolute must-haves. These are the things you simply can't live without every single day. You may need a certain number of bedrooms for your family, or you require your home to be a short drive to school or work. Specific features, such as easy access to public transportation, are extremely important for your daily routine. After that, create a "wish list" for things that would make your life even better but aren't necessary. It could be a private swimming pool or your very own big kitchen. When you go to look at homes, try to keep an open mind. Be prepared to compromise on a few things from your wish list if it means finding a home that perfectly meets all your needs. A good real estate agent can suggest smart ideas or show you homes that might not seem perfect at first but could work for your family in surprising ways.

Conduct a Thorough Area Search

The place you choose to live truly matters for how happy you feel every day and for how much your home might be worth later on. What you can afford usually helps you make a decision. If houses in your favourite spot cost too much, you can look at other new neighbourhoods that offer homes for a better price. For evaluating the community, consider its overall atmosphere, the convenience of its amenities, and the ease of commuting. This helps you understand how well the area supports your lifestyle and daily needs.

Find the Right Real Estate Agent

Finding a good real estate agent is extremely important, especially when buying a home for the first time. Consider them as your main guide for what can seem like a tricky journey. You need an agent you can talk to openly and honestly, someone who knows a lot about different areas and the housing market. Ensure your agent is officially registered with the Real Estate Regulatory Agency (RERA); this registration confirms they adhere to the rules and keep you protected. Feel free to ask about their experience, how long they have worked in Dubai, and how many homes they have helped people buy or sell. A good agent will share their experience and how long they've worked in Dubai. This transparency helps you feel comfortable and confident in their service.

Understand the Property Purchase Process

Knowing all the steps to buying a home gives you peace of mind and helps you stay ahead. Your agent should walk you through the entire journey, which begins with making an offer and entering the negotiation phase. This is followed by preparing the necessary paperwork, obtaining the No Objection Certificate (NOC) from the developer (especially if there's an existing mortgage on the property), attending the transfer appointments at a Dubai Land Department (DLD) Trustee Office, and other steps, including the handover of keys. 

It is also crucial to understand the type of property ownership. Property ownership in Dubai primarily falls into two categories.

• Freehold Property: You own the land and the property outright and indefinitely, with full rights to sell, lease, or pass it on. Most residential areas in Dubai are freehold.
• Leasehold Property: You lease the property from the owner for a fixed period. Clarify the terms of ownership before making any purchase commitment. 

Mortgage Options

For many, buying a home becomes possible with a bank loan called a mortgage. Dubai offers various mortgage facilities to residents of the UAE and other foreign nationals. There are two major types: fixed-rate mortgages, in which the interest that you pay to the bank each month remains the same over a specified term (such as 1-5 years) so that your payments are forecastable; and variable-rate mortgages, which involve an interest rate that may fluctuate based on the market trends such as the EIBOR (Emirates Interbank Offered Rate). The variable rate may start at a lower rate, with the potential for it to rise in the future. Islamic mortgages are also available at some banks, such as Dubai Islamic Bank and Emirates Islamic Bank, and are operated based on specific principles, with no interest charged. It's wise to compare the offers of various lenders and visit a mortgage advisor as early as possible. They can also guide you on whether you qualify, how much you will be paying monthly and any costs that you might not notice.

Negotiate Effectively

Getting the best price for your home involves smart planning and knowing about the market. It is always advisable to research similar properties in the locality before making an offer on a property, to familiarise yourself with the current market prices and recent sales trends. It will greatly increase your bargaining power. You should be prepared to make a few concessions in the negotiation process, but there may be points where you and the seller can agree, such as adjusting the move-in date or negotiating flexible payment plans. Having a clear budget that aligns with your actual financial capabilities will guide your offers and prevent overspending.

Conduct Thorough Property Viewings

In-person property viewings are a crucial step in the buying process. They allow you to assess if a property meets your expectations and aligns with your vision for your new home. Begin by exploring several properties that match your criteria and budget to compare various options available in the market. Once you have narrowed down your choices, schedule a comprehensive final property inspection with your real estate agent before finalising the purchase. This inspection confirms that the home is in the same condition as when you first saw it. It also ensures that the seller has completed any repairs or changes you both agreed upon. Being careful here helps you avoid any unexpected problems after you buy the home.

Understand Upfront Costs and New Regulations

A new rule from the Dubai Central Bank, effective February 1, 2025, has changed the way you finance your home. If you're opting for a mortgage, you'll need to cover the Dubai Land Department (DLD) fee and brokerage fees upfront.

Here's a breakdown of the key fees you'll need to prepare for:

• 4% DLD registration fee.
• 2% real estate brokerage commission.
• AED 4,000 + 5% VAT totalling AED 4,200 DLD Trustee Fee.
• 0.25% of the loan amount for the Mortgage Registration Fee.
• AED 250 Title Deed Issuance Fee.

The Legal Process of Buying Property

Buying a property in Dubai involves a clear, regulated legal process, overseen by the Dubai Land Department (DLD).

Here's a simplified overview:

1. Memorandum of Understanding (MOU): You and the seller sign an MOU, outlining the terms of the sale.
2. Deposit Payment: You'll pay a deposit, usually 10% of the property value, to secure the deal.
3. No Objection Certificate (NOC): If there's an existing mortgage on the property, the seller needs to obtain a NOC from their bank.
4. Property Transfer at DLD: The final step involves registering the property under your name at the DLD.

It's highly advisable to engage a reputable real estate agent and a legal professional familiar with Dubai property laws, which ensure a smooth transaction and safeguard your interests. The DLD is also implementing digitisation efforts to simplify ownership transfers and reduce paperwork.

Attractive Locations in Dubai

Property Prices and their Rental Yields that may help you buy in high-yielding areas are: 

Conclusion

Getting your finances in order is the most important step on your home-buying journey. Beyond the home's price and initial upfront fees, consider additional costs, including property registration fees, mortgage registration fees, trustee fees, and regular service charges. Create a detailed plan for your finances including a specific budget. Such planning helps you know exactly what you can afford and avoid any unexpected bills, with a clear understanding of your complete financial picture.

With your finances clearly in focus, you can then confidently look towards the promising opportunities in Dubai's real estate market. The market remains an attractive investment destination, with a strong economy, ongoing construction projects, and efforts to attract international talent. 2025 holds promise for first-time homebuyers to enter the market with new options from developers.

Ready to confidently step into Dubai's property market? Contact us to begin your exciting home-buying journey.

Related blog: Legal Steps to Buying Real Estate in Dubai