Flexible payments, lesser fees: How Dubai's new initiative benefits first-time home buyers

Khaleej Times

03-07-2025

Dubai's latest initiative to incentivize first-time homebuyers is set to make property ownership more affordable for investors and end-users.
On Wednesday, the Dubai Land Department (DLD), in collaboration with the Department of Economy and Tourism (DET), launched the First-Time Home Buyer Programme. The initiative offers priority access to new developments, preferential pricing, and customized mortgage solutions via the DLD platform and the Dubai REST app. Open to all UAE residents aged 18 and above, the programme caps investments at Dh5 million.
According to global consultancy Knight Frank, property prices in Dubai are already more competitive than those in many major global cities such as New York, London, Tokyo, Hong Kong, Mumbai, Singapore, Geneva, Shanghai, and Vienna.
Participating developers — including Azizi Developments, Beyond Developments, Binghatti Holding, Damac Properties, Danube Properties, Dubai Properties, Ellington Properties, Emaar Properties, Majid Al Futtaim Group, Meraas, Nakheel, Palma Holding, and Wasl — are offering discounted mortgage rates and preferential prices, making property more affordable for first-time buyers.
Azizi Developments announced exclusive offers for new buyers through the dedicated platform operated by DLD and DET. The company noted that it would direct sales to interested buyers at favorable rates by reallocating brokerage commissions, further enhancing affordability.
'The programme not only enables renters to become homeowners, but also promotes economic stability by encouraging long-term financial planning and asset-building," said Mirwais Azizi, founder and chairman of Azizi Developments.
"Through enhanced accessibility and tailored pricing, we are helping more residents transition into homeownership while supporting real estate sector growth," he added.
Easing entry into the market
Riz Ahmed, CEO of SmartCrowd, emphasized that early access to launches, special pricing, flexible payment plans, and the option to split DLD fees into interest-free installments will ease the path for first-time buyers.
'It's definitely becoming more manageable. While the initiative doesn't lower prices directly, it reduces initial financial pressure through lower fees, better mortgage rates, and flexible payment options,' he explained.
Nitin Chopra, CEO of Range International Property Investment, said that by opening the programme to all residents over 18 — regardless of nationality— and setting a cap at Dh5 million, the government is targeting the mid-market segment where demand is strong and affordability is crucial.
'The programme modernizes homebuying by digitizing traditional paper-based processes. Licensed brokers onboard buyers via a centralized 'Dubai Brokers' portal, positioning them as compliance custodians within a government-backed framework,' Chopra said.
He also highlighted that close coordination with Dubai's leading developers and banks ensures mortgage solutions are tailored to the programme's needs, aligning supply and finance with structured, demand-led policy. 'While the full impact remains to be seen, the initiative is poised to expand access, relieve price pressures, and diversify homeownership in Dubai's growing market," he said.
Empowering a new generation of buyers
Navneet Mandhani, co-founder of Karma Developers, praised the programme for easing the financial burden on new buyers — whether through reduced upfront costs, waived fees, or better mortgage access.
'This initiative empowers a new generation of residents and expatriates to take their first step toward homeownership,' he said. 'For investors, it expands the buyer base and injects fresh liquidity into the market. Over time, these incentives will foster a more mature market focused on end-user growth over speculative investment.'
Despite a steady rise in property prices due to high demand and limited supply, Mandhani believes Dubai remains relatively affordable compared to other global cities.
'Developers and lenders are responding with flexible mortgage options, tailored payment plans, and lower entry thresholds. Factoring in long-term rental savings, capital appreciation, and the stability of Dubai's real estate market, buying now makes strong financial sense for residents with stable incomes and a long-term outlook,' he added.
Widening market participation
Samer Ambar, co-founder and CEO of Reef Luxury Developments, said the new programme makes homeownership significantly more accessible for both first-time investors and end-users.
'Offering a range of pricing options and manageable payment structures makes a tangible difference for first-time buyers. It provides a meaningful advantage that wouldn't otherwise exist,' he said.
Beyond affordability, Ambar emphasized that developers must ensure these homes remain high-value, long-term assets for buyers.
Veer Doshi, CEO and managing director of Vincitore Realty, noted that the initiative not only helps renters become owners but also fosters community stability and belonging.
'Exclusive incentives like preferential pricing and flexible mortgage options enable residents to fulfill their homeownership dreams, while also promoting sustainable sector growth,' said Doshi. 'For both end-users and investors, these changes break down traditional barriers and create a more inclusive, resilient market.'
With mortgage rates stabilizing and developers offering investor-friendly plans, Doshi said owning is now often comparable — or even cheaper — than long-term renting.
'Market conditions and developer incentives have created a unique window for first-time buyers to enter without compromising on location, quality, or long-term value,' he added.
Driving long-term stability
Yogesh Bulchandani, CEO and co-founder of Sunrise Capital, highlighted how the initiative lowers the entry barrier for aspiring homeowners through a combination of exclusive benefits: early access to launches, flexible payments, and tailored mortgage products.
'For end-users, it offers a more attainable path to long-term stability and wealth creation. For investors, it signals a maturing and resilient market supported by broader buyer participation — especially from younger residents and long-term expatriates,' he said.
By capping eligible properties at Dh5 million, introducing zero-interest registration fee payment plans, and launching exclusive mortgage products, Bulchandani believes Dubai is making homeownership more accessible than ever.
'Combined with strong rental yields and enhanced residency options, buying a home in Dubai is now a practical, financially sound decision — not just an aspiration. This initiative will convert more tenants into owners, stimulate genuine end-user demand, and lead to a more balanced and sustainable real estate market,' he concluded.