First Home Buyers in Dubai: Key Steps to Secure Your Dream Property

Understanding The Dubai Real Estate Market For First-Time Buyers

Before jumping into first-time home buyer tips and advice, let us dive into the Dubai real estate market's laws and regulations that you should know.

The Dubai real estate market is governed by the DLD (Dubai Land Department) and its regulatory arm, RERA (Real Estate Regulatory Authority). These bodies ensure that Dubai's property market is transparent, secure and open to all.

Property ownership is open to everyone, whether you are a UAE National, an expat living in Dubai or even a non resident.

However, whilst UAE Nationals and GCC residents can own properties anywhere in Dubai, foreigners and expats can only take full ownership of a property in designated freehold areas. 

The two primary laws relating to this are:

• Article (4) of Law No. 7 of 2006 allows UAE and GCC citizens to buy real estate anywhere in Dubai.

• Article 3 of Regulation No. of 2006 limits foreign property ownership to designated areas in Dubai. 

Fortunately for ex-pats, many of Dubai's most popular communities, such as Dubai Marina, Palm Jumeirah and Downtown Dubai, are freehold areas.

Key Steps In The Home Buying Process In Dubai

Whether you are a first-time home buyer or a seasoned one, it is important to follow the proper steps while buying a home in Dubai.

This will ensure a smooth and hassle-free process and help you avoid any potential complications during the property transfer process.

Here are the steps that are generally followed while buying a home in Dubai: 

Get Pre-Approved

The temptation as a first-time home buyer is to jump straight into your property search. But, if you plan to buy using a mortgage, the first step is to get pre-approval.

Pre-approval is when a bank considers your circumstances and gives an indication of how much it should be willing to lend you. This is the perfect starting point for a first-time buyer because it allows you to set up a budget that you then use for your property search.

The best way to get pre-approved is to speak to an experienced mortgage consultant who will guide you through the process.

Start Your Property Search

With your budget in place, you can now begin your property search. Whilst you can do this individually, it could be a good time to involve an experienced real estate agent, such as those at Engel & Völkers, who can help you narrow down your search and find you the perfect property.

Negotiate the Deal

Once you have found the property you want to buy, your real estate agent will negotiate with the owner on your behalf to secure you the best price and iron out the deal's details.

Sign a Form F

Once the terms have been decided, you must sign a Form F (Memorandum of Understanding). This is one of the key RERA forms and is essential because it outlines the conditions of the sale, the purchase price, payment details, and more. You, the buyer, and the seller will sign this to agree on the terms.

Pay a Security Deposit

You will give your agent a 10% security deposit cheque, which will be returned to you after the transfer is completed.

Property Transfer Process

As a first-time buyer, you should work with a conveyancer who will handle the legal aspects of the property transfer. At the end, you, the convenyancer and the seller will meet at an approved property registration trustees office to finalise the transfer. This will result in you being issued a title deed to the property in your name and receiving the keys to the property.

Tips For First-Time Homebuyers

Let us proceed to tips and advice for first-time home buyers. Before beginning your search on “How to buy a house for the first time?”, look through the following tips:

Do your due diligence

Research and work with an expert to understand Dubai’s real estate market, including the different locations, current trends, property types, and prices. This will help you make an informed decision when you buy a house. 

Get pre-approval

If you opt for a mortgage, get mortgage pre-approval before you begin the home-buying process. Many first-home buyers skip this step and face difficulties later. A mortgage pre-approval will help you understand your budget and thereby narrow your property search. 

Choose your location carefully

The residential area you choose makes a big difference. Consider what amenities you will require in proximity. Recreational hubs? Schools, hospitals, and grocery stores? Retail areas and industrial hubs? Even consider the distance and commute time from your home to your office. 

Budget for all costs

First-time buyers in Dubai should account for all expenses beyond the purchase price, such as DLD fees, service charges, agency commissions, and utility deposits.

Proper budgeting ensures you’re prepared for these additional costs, which we’ve detailed further in our guide to costs of buying a property, as well as our blogs on DLD fees, service charges, agency commissions, DEWA bills, and Empower fees.

View the property in person

Viewing a property in person is vital to check for any damage or wear and tear that the seller should fix before you buy a property. You could also hire a professional property inspector to complete a snag list of any issues.

Research developers

First-home buyers sometimes go for off-plan properties - as they are generally cheaper. If you are doing so, research the property developer’s reputation and previous projects. This will help you gauge whether the project and the developer are reliable.  

Consider resale and rental potential

If you plan to buy your first property as an investment, consider the property’s resale and rental value. It is essential not just to find a property that you like but one that can generate a good return.

Top Areas for First-Time Buyers

Whilst Dubai's real estate market offers an abundance of choice for first-time buyers, certain communities prove consistently popular.

For budget-conscious first-time buyers, these include:

• Jumeirah Village Circle

• Sports City

• Al Furjan

• Discovery Gardens

• Motor City

For first-time buyers with a larger budget, popular choices include:

• Dubai Marina

• Downtown Dubai

• Palm Jumeirah

• Jumeirah Lake Towers

Conclusion: Ready To Start Your Home-Buying Journey In Dubai?

So, first-home buyers. Are you ready to fulfil your dreams of becoming a homeowner in Dubai? It is natural to have some jitters, but with real estate experts like Engel & Völkers by your side, there is no need to worry. 

Engel & Völkers has been helping first-time buyers in Dubai for over 10 years. From working with all major developers to having community experts across Dubai, Engel & Völkers is perfectly positioned to help you find your perfect home.

Whether you want more tips and advice as first-time home buyers or have decided to begin your property search, contact us today using the link below.