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Dubai’s First-Time Home Buyer Program has triggered a sharp rise in real estate activity, pushing property transactions to nearly Dh90 billion over July and August, according to figures released by the Dubai Land Department. The surge, representing a 12 percent year-on-year increase, underscores how the initiative is reshaping one of the world’s most closely watched housing markets.
The program, launched in July 2025, is designed to help both Emiratis and expatriates secure their first homes in the emirate. By offering preferential access to new properties, discounted rates, and tailored mortgage solutions, the Dubai First-Time Home Buyer Program is opening the door to ownership for residents who previously viewed the market as unattainable.
Officials from the Department of Economy and Tourism say the scheme is directly aligned with the city’s Economic Agenda D33, which seeks to double GDP and boost household ownership rates by 2033. Helal Saeed Almarri, director general of DET, described the initiative as “a step that strengthens confidence, balances demand, and makes Dubai an even more attractive place to live and invest.”
Major developers including Emaar, Damac, and Nakheel, along with mid-tier groups like Danube and Binghatti, have pledged to allocate at least 10 percent of units in new and ongoing projects to this program. Most of these properties are priced under Dh5 million, catering to the middle-income market that has struggled with affordability amid years of price escalation.
Banks such as Emirates NBD, Mashreq, and Dubai Islamic Bank have rolled out products to support the scheme. These include lower interest rates, accelerated approvals, and flexible repayment options. According to brokers, the accessibility of financing has significantly boosted buyer inquiries, particularly among long-term tenants weighing the costs of renting versus ownership.
Average annual apartment rents in Dubai currently stand at Dh85,000, while villa rents reach around Dh190,000. Against that backdrop, a growing number of households see mortgage-backed ownership as the more sustainable option. Data from Betterhomes suggests inquiries from tenants looking to transition into buyers rose by 15 percent in the weeks following the program’s launch.
Market analysts argue that this structural shift is not just about short-term sales. By converting renters into end users, the Dubai First-Time Home Buyer Program reduces dependence on speculative investment and improves long-term stability. “It signals a maturing sector that combines international capital with local aspirations,” said V.S. Bijukumar, a Dubai-based property consultant.
Developers also see the scheme as a safeguard against oversupply. More than 150,000 new units are scheduled for delivery between 2025 and 2027, raising concerns of a possible correction. By ensuring that a larger proportion of these homes are absorbed by actual residents, rather than speculative investors, authorities hope to maintain equilibrium.
Omar Bu Shehab, director general of the DLD, emphasized that the initiative “empowers individuals and families to invest in their futures while aligning with Dubai’s Real Estate Strategy 2033.” That long-term plan focuses on inclusivity, resilience, and creating sustainable housing solutions for a fast-growing population.
Demographic changes are reinforcing demand. Dubai’s population recently passed four million, rising at a pace of about five to six percent annually. Household sizes have fallen from an average of 4.4 in 2019 to 3.9 in 2025, fueling demand for smaller units in emerging neighborhoods such as Jumeirah Village Circle, Dubai South, and Al Furjan.
Off-plan sales for one-bedroom and studio apartments have dominated recent activity, with developers reporting higher-than-expected absorption rates. V. Sivaprasad, chairman of Condor Developers, said the scheme has “reshaped the market narrative in just two months” by drawing in thousands of new entrants.
The influx of first-time buyers also benefits the banking sector. Mortgage demand is diversifying revenue streams at a time when corporate lending growth has slowed. Economists argue that by spreading lending risk across a larger base of individual borrowers, financial institutions become more resilient to global interest rate volatility.
At the same time, the initiative supports Dubai’s positioning as a global magnet for wealth and talent. According to Henley & Partners, the city already hosts more than 80,000 millionaires, a number projected to rise as global capital seeks out safe havens. By broadening access to ownership beyond the top tier, Dubai is cultivating a more anchored resident base.
Analysts at CBRE suggest that the program’s greatest impact lies in the mid-market category, which has historically been overshadowed by luxury development. “The Dubai First-Time Home Buyer Program is not just social policy,” said one analyst. “It is a liquidity driver that deepens the market at a critical juncture.”
In essence, the scheme is more than a housing policy. It is a structural lever designed to reinforce market depth, stabilize demand, and ensure long-term growth. By making ownership attainable for residents and newcomers alike, Dubai is building a market that is less speculative, more inclusive, and better positioned to weather future challenges.
It is a government-backed initiative launched in July 2025 to make property ownership more accessible for residents and expatriates.
Both Emiratis and expatriates who are purchasing their first property in Dubai can access discounted units and special mortgage packages.
It boosts demand, encourages ownership among long-term tenants, and stabilizes the market by reducing reliance on speculative investment.
Yes, leading banks like Emirates NBD, Mashreq, and Dubai Islamic Bank offer customized mortgage solutions with lower rates and flexible terms.
It supports Dubai’s long-term real estate strategy, enhances inclusivity, and diversifies economic growth by strengthening household ownership.
