The First Time Home Buyer Program, introduced in July 2025 has already generated AED 90 billion in property transactions across July & August.
What is the First Time Home Buyer Program?
The program is a jointly led initiative by the Department of Economy and Tourism (DET) and the Dubai Land Department (DLD). Key features include:
- Preferential allocation: Participating developers are required to reserve at least 10% of units in new or ongoing projects (priced under AED 5 million) for first-time buyers.
- Customized mortgage offers: Participating Banks are offering reduced interest rates, more flexible repayment terms, and faster approval procedures.
- Reduced entry barriers: Discounted Dubai Land Department fees, easier access to off-plan units, and incentives that make ownership more attainable, particularly for tenants who otherwise pay high rents.
Who Benefits
- First-Time Buyers: Both Emiratis and expatriates who have not owned property in Dubai before. The program aims to make ownership viable for middle-class households who may have found prices prohibitive.
- Tenants: With rents rising (average apartment rents nearing AED 85,000 annually, villa rents around AED 190,000) the new ownership options appear financially more appealing.
- Developers: The program helps them reduce reliance on speculative demand, ease absorption of the large supply coming up (especially off-plan) by converting renters into end-users.
Where Demand is Increasing
Smaller off-plan units, studio and one-bedroom apartments in developing neighborhoods are seeing the sharpest rise in demand. Areas like Jumeirah Village Circle, Dubai South, and Al Furjan have become especially popular under the scheme.
Market Impacts & Broader Implications
- Transaction volumes up: The AED 90 billion figure over two months reflects a significant boost in activity.
- Supply & demand balance: With over 150,000 units scheduled for delivery between 2025 and 2027, there was concern over oversupply. The program helps ensure demand keeps pace, especially in the mid-market range.
- Economic & strategic alignment: The initiative supports Dubai’s goals under its Real Estate Strategy 2033 and Economic Agenda D33, boosting homeownership, strengthening domestic demand, increasing investor confidence, and advancing long-term resilient growth.
According to Dubai Land Department data, this marks a 12% year-on-year increase. This program is part of broader government efforts to support the Real Estate Strategy 2033 and the Economic Agenda D33, aiming to increase homeownership, improve market balance, and expand access to housing for residents and expatriates alike.
Dubai’s First Time Home Buyer Program is proving to be more than a housing initiative, it’s a market catalyst. By unlocking opportunities for first-time buyers, reducing barriers to ownership, and aligning investor and resident interests, the program is strengthening the foundation of Dubai’s real estate market.
If it continues on this trajectory, it could play a pivotal role in ensuring market stability, boosting homeowners’ participation, and helping Dubai meet its targets for inclusive growth under Vision 2033.
