In Dubai property, first-time home buyers are driving growth in 2025
The first-timers' presence is showing up in developers' sales records, with data showing them to be younger and being residents in the UAE for 3-5 years before taking the decision to buy a home. 'Where it used to be 10-15 years before residents thought of buying a property in Dubai, newer residents are coming in much earlier,' said an estate agent.
'The 2021-22 Dubai property boom was set off by these long-term residents – now, the market is getting the 'short-termers' turning homeowners. In earlier times, you still had to convince many long-timers to buy a property here – these days, new residents in Dubai are thinking how long to wait before they buy.' (The same trend is visible in Abu Dhabi and Sharjah real estate too, market sources add.)
With visionary policies, a dynamic economy, and unmatched quality of life, Dubai has created an environment where first-time buyers feel empowered to invest, live, and grow. Dubai's real estate evolution is giving first-time buyers more than just keys to a property—it's giving them ownership of a lifestyle and a future.
Throw into the mix the steady stream of overseas investors wanting to park their investments in the UAE through property buys or other assets, it gives the Dubai and wider UAE property market the cushion to see off the geopolitical turmoil. And hopefully, add more fuel to the growth engine that's been the Dubai property market for five years now.)
Developers have been quick to spot opportunities with first-time buyers. Their sales talk has been tweaked to give more emphasis to this group rather than just wait for investors wanting to buy a unit and then place it in the rental market.
When it comes to the projects, developers are setting them up in emerging parts of the city. Attention is also being given to the apartment sizes and amenities within – if these buyers are not looking for bigger built-up areas, then so be it. More units around the 1,000-1,200 square foot built-up are available in the market. All that potential buyers need to do is look.
These details also effectively lower the cost of entry for first-time buyers. (Developers are also going all in on the 'wellness' part of what they are offering beyond the actual buildings and homes too.)
It seems to be paying off.
Sweet spot on pricing
"We've seen a noticeable surge in first-time buyers in their thirties (so far) this year, up by an estimated 25%,' said Riyad Magdy, Chairman of Oia Properties. '(They're') each investing between Dh1.2 million to Dh3 million.
'We put this trend down to increased access to home loans and growing confidence in the investment potential of the Emirates.
'These are residents who are now looking to build lives and families here - mainly Indians and Brits, with some Chinese and Egyptians starting to get in on the act.'
Steady on the mortgages
Apart from the developer incentives, the other major factor driving first-timers into the property market is the relative ease of access to mortgages. Sure, interest rates have not dropped as much as any had been expecting by now – but that's OK.
'Fixed mortgage rates in the UAE have remained largely stable over the past year, with current rates starting at around 4% for a 3-year fixed period,' said Haider Qureshi, Managing Director of Amity Mortgages.
'This rate stability is offering end-users financial predictability. In Q1-2025 alone, the total value of rental transactions rose by 19% quarter-on-quarter — a trend that's pushing many tenants to consider mortgages as a smarter long-term investment.
'Additionally, more lenders are now expanding their offerings to include mortgage products for non-resident buyers.'
All of which adds up nicely in keeping the property growth rates going. Even if the numbers have stabilized from the turbo-charged levels of 2023-24.
If the rest of 2025 sees first-timers as active as they were in the first four months, developers have the pool of buyers they need for the new launches and projects that are being delivered.
'Every year after 2021, the Dubai property market keeps asking how long can the growth last,' said the estate agent. 'Each year delivered its own dynamics, like the rush of end-users in 2021-22 and Golden Visas in 2023-24.
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