UAE’s New First-Time Home Buyer Law: What Does it Mean for UAE Residents?

Dubai’s property market has long been a beacon for international investors, but for many residents, the dream of owning their first home has remained just out of reach. Rising prices, high down payments, and strict lending criteria have often created barriers for those looking to step onto the property ladder. In response, the Dubai Land Department (DLD), in collaboration with the Department of Economy and Tourism (DET), has launched a landmark initiative designed to empower first-time buyers.

This programme, recently introduced in July 2025, with the support of 13 leading developers and five of the UAE’s largest banks, marks a turning point for residents seeking to make Dubai their permanent home. By combining government-backed incentives with flexible financing, the scheme opens the doors of homeownership wider than ever before.

What Does The First-Time Buyer Initiative Offer?

The initiative is designed to remove the key financial and procedural hurdles that have traditionally deterred residents from buying their first property. At its core, the programme provides:

• Priority Access: First-time buyers gain early access to premium listings, ensuring they can secure desirable units before they reach the open market.
• Flexible Payment Plans: Custom payment structures such as 50/50 and 60/40 plans make it easier to manage down payments and handover costs.
• Zero-Interest DLD Fees: Buyers can spread the 4% registration fee across eight months with no additional interest.
• Developer Discounts: Partner developers are offering preferential pricing and exclusive deals to make homes more affordable.
• Attractive Mortgage Options: Participating banks extend favourable terms, even without minimum salary requirements, making financing more accessible.

Together, these features significantly reduce the upfront costs and long-term financial pressures of purchasing a first home in Dubai.

Who Can Apply?

The programme has been deliberately structured to include a broad pool of potential homeowners, with eligibility designed to encourage inclusivity and accessibility:

• UAE Residents of Any Nationality: Both nationals and expatriates are welcome.
• Age Requirement: Applicants must be 18 years or older.
• First-Time Buyers Only: Applicants must not currently own a freehold property in Dubai.
• Property Value Cap: Homes valued up to AED 5 million qualify.
• One-Time Use: Each buyer may only benefit once from the programme.

Importantly, there is no minimum salary threshold. This is a significant shift from traditional mortgage eligibility rules where banks have discretion to tailor financing packages.

How Does the Process Work?

The DLD has streamlined the process to ensure it is transparent, digital-first, and user-friendly:

1. Check Eligibility: Register through the Dubai REST app or the DLD website with your Emirates ID and proof of residency.
2. Get Pre-Approved: Once verified, applicants receive a QR code granting access to exclusive listings. Banks then assess and provide financing options where needed.
3. Select a Property: Choose from a wide selection of eligible homes across apartments, townhouses, and villas.
4. Secure Financing: Apply for a mortgage through one of the five participating banks, with flexible repayment terms.
5. Finalise Purchase: Complete the transaction and receive the title deed, officially making you a homeowner in Dubai.

This end-to-end process ensures speed and security, giving residents the confidence to take their first step into property ownership.

How Has The Market Responded?

The DLD projects that at least 5,000 new buyers will take advantage of the initiative in 2025, a figure that underlines the programme’s significance. This push is part of Dubai’s broader ambition to achieve AED 1 trillion in real estate transactions by 2033. The impact, however, goes far beyond transaction volumes.

By making homeownership more accessible, the initiative is expected to encourage more residents to transition from renting to owning, fostering stronger roots and longer-term community ties. This stability is vital for the Emirate’s long-term growth, as it supports sustainable urban development aligned with Dubai’s master planning. Developers, too, stand to benefit, with increased demand encouraging them to launch more projects tailored to end-users rather than purely investors. Together, these outcomes contribute to a more balanced and resilient property market where residents are not just participants but central stakeholders.

How Cavendish Maxwell Can Support First-Time Buyers

At Cavendish Maxwell, we understand that purchasing your first home is one of life’s most significant milestones. While the DLD initiative offers a groundbreaking opportunity, navigating the process, from eligibility checks and valuations to financing and final documentation, can still feel daunting without professional guidance.

Our team offers professional valuation services, delivering RICS-certified reports that confirm eligibility and facilitate mortgage approvals. We also guide clients through financing options, liaising with partner banks to secure favourable mortgage terms. With our market insights, buyers can identify locations and developments that not only meet lifestyle needs but also promise strong long-term value.

More than a property advisor, we act as a strategic partner, helping first time buyers in Dubai view their first home not just as a purchase but as a long-term investment in their future.

Get in touch with us to learn more about owning your first home in Dubai.