Dubai's buyer incentive program aims at attracting British residents and promoting long-term residency
## Dubai Unveils First-Time Buyer Scheme: A Game Changer for Expats
Dubai has announced a new initiative aimed at making homeownership more accessible for its residents, particularly expats. The first-time buyer scheme, open to all UAE residents, regardless of nationality or length of stay, is being hailed as a "game changer" by property professionals.
### Key Details of the First-Time Buyer Scheme
The scheme offers a range of incentives to first-time buyers, including:
- Eligibility: Residents aged 18 or over, who do not already own a freehold residential property in Dubai and want to purchase a home valued up to AED 5 million (approx. US$1.36 million). - Incentives: Buyers receive priority access to new project launches, preferential pricing (sometimes up to 10% below market rate), flexible and improved payment plans, competitive mortgage offers with reduced interest, and the option to pay the 4% Dubai Land Department (DLD) registration fee in interest-free instalments or via credit card. - Developer Participation: Major developers are allocating a portion of their inventory exclusively for first-time buyers, with some reserving at least 10% of new and existing units under AED 5 million for this group. - Financial Terms: The programme extends credit facilities up to 18 years and aims to streamline the home-buying process with faster approvals and integrated financial support. - Digital Approach: The scheme is marketed as digital-first, aligning with Dubai’s broader economic ambitions under the D33 plan to become a top global financial hub and improve quality of life through broader homeownership.
### Potential Impact on the Expat Population Growth
The scheme’s inclusive eligibility and financial benefits are deliberately designed to attract and retain expatriates, particularly those from the UK facing high property prices at home. Property experts in Dubai report "unprecedented demand" from expats, particularly Britons, who see the scheme as an opportunity to secure affordable, high-quality housing with favorable terms.
By lowering barriers to homeownership, the scheme could encourage expats to settle for longer periods, contributing to population growth and economic diversification. This aligns with Dubai’s strategic goals to deepen its talent pool and sustain real estate sector growth amid global economic uncertainties.
Increased expat homeownership may also stimulate demand for local services, boost consumer spending, and reinforce Dubai’s reputation as a global lifestyle and business hub, further attracting international talent and investment.
### Summary
Dubai’s first-time buyer scheme is a comprehensive, expat-inclusive initiative that significantly lowers the barrier to homeownership through financial incentives, developer partnerships, and a streamlined digital process. For UK expats—and others facing expensive or restrictive housing markets at home—the programme offers a compelling alternative, likely accelerating expat population growth and reinforcing Dubai’s position as a global living and investment destination.
The move to implement the first-time buyer scheme may further contribute to the UK's 'brain drain' as more ambitious citizens consider moving abroad. The region is pushing to attract and retain an ever-growing entourage of ambitious foreigners. The growing number of millionaires in the United Arab Emirates is a significant driver of inward immigration, along with the region's growing economy, minimal tax, and low crime rate. Over 9,800 dollar millionaires from across the world are expected to move to the United Arab Emirates over 2025.
Charlie Bannan, managing director at Haus & Haus, believes the First Time Home Buyer programme will incentivize expats to buy property in Dubai, while Nick Young, a Dubai real estate veteran, has branded the scheme a "game-changer". The city state of Dubai has unveiled a new first-time buyer scheme to help residents get on the housing ladder, opening up access to up-and-coming areas, supporting a more inclusive expansion of Dubai’s real estate landscape.
- The first-time buyer scheme in Dubai extends credit facilities up to 18 years and aims to streamline the home-buying process with faster approvals and integrated financial support.
- The scheme’s incentives include priority access to new project launches, preferential pricing, flexible and improved payment plans, competitive mortgage offers with reduced interest, and the option to pay the registration fee in interest-free instalments or via credit card.
- Major developers are allocating a portion of their inventory exclusively for first-time buyers, with some reserving at least 10% of new and existing units under AED 5 million for this group.
- The digital approach of the scheme aligns with Dubai’s broader economic ambitions under the D33 plan to become a top global financial hub and improve quality of life through broader homeownership.
- The potential impact on the expat population is significant as the scheme could encourage expats to settle for longer periods, boosting population growth, economic diversification, and potentially attracting more international talent and investment.
- The scheme may further contribute to the UK's 'brain drain' as more ambitious citizens consider moving abroad, with over 9,800 dollar millionaires from across the world expected to move to the United Arab Emirates over 2025.
- The growing number of millionaires in the United Arab Emirates is a significant driver of inward immigration, along with the region's growing economy, minimal tax, and low crime rate, making it an attractive lifestyle and investment destination.
