Dubai’s real estate market has always been alluring — whether you’re looking for a starter home or a long-term residency backed by property. Thanks to recent initiatives, two very different paths to property ownership are now more accessible than ever: one for first-time buyers and another for investors chasing the coveted 10-year Golden Visa. But what does each route cost, and what do you actually gain? Let’s break it down.
The First-Time Home Buyer (FTHB) Route
Who It’s For:
- UAE residents aged 18 and above
- People who have never owned freehold property in Dubai
- Buyers looking for affordability and long-term residence, not short-term profit
Key Costs (using a ~Dh1.5 million home as an example):
- DLD Transfer Fee (4%): ~Dh 60,000. The good news? This can be paid in interest-free installments — and in some cases, even fully waived by partner developers.
- Developer Discount: Up to 10% on selected projects.
- Agent Commission: Around 2% + VAT → roughly Dh 32,000.
- Registration + Title Deed: ~Dh 8,200.
- Down Payment: Thanks to an 85% loan-to-value ratio, you only need 15% up front — or about Dh 225,000 instead of the usual 20–25%.
- Mortgage Processing: Discounted rates thanks to partner banks (Emirates NBD, Dubai Islamic Bank, Mashreq, etc.).
- Application Fee: None; no cost to apply for the programme.
Additional Requirement:
- A mandatory one-year holding period is required. This is likely to prevent speculative buying or “flipping” — the program is designed with real end-users in mind.
What You Gain:
- Affordable Entry: Lower upfront capital compared to traditional purchases.
- Cash-Flow Friendly: Instalment-based transfer fee helps spread costs.
- Better Financing: Preferential mortgage terms with partner banks.
- Real-Occupancy Focus: The holding period encourages long-term residence.
The Golden Visa Through Property Route
What It Is:
- An investor route to secure a 10-year residency visa
- Requires property investment in approved freehold areas
- Must show full equity in the property (i.e., you must own it, even if mortgaged)
Key Costs (for a Dh2 million property):
- DLD Transfer Fee (4%): Dh 80,000. Paid upfront.
- Agent Commission (2% + VAT): Around Dh 42,000.
- Registration + Title Deed: Dh 8,200.
- Mortgage-Related Fees (if you take a loan):
- 0.25% of the loan amount + Dh 290 for mortgage registration
- Plus 0.5%–1% of the loan in processing fees
- Visa-related Costs:
- Entry permit/application: Dh 2,800–3,000
- Emirates ID (10 years): Dh 1,150–1,200
- Medical exam: Dh 700–750
- Typing/service fees: Dh 300–500
- Health insurance (mandatory): Dh 500–2,000/year per person
Total Upfront Cost:
- Roughly Dh 2.136 million, combining the property price + all associated fees.
What You Gain:
- Long-Term Residency: A 10-year Golden Visa — one of the most stable residency options in the UAE.
- Flexibility: No minimum stay required to maintain the visa.
- Family Extension: Ability to extend the visa to dependents.
- Asset Value: Your residency is tied to a real asset, which may appreciate over time.
- Investor Appeal: This route helps Dubai attract long-term capital and global talent.
Which Option Suits You Best?
| Route | Best For | Pros | Things to Consider |
|---|---|---|---|
| First-Time Home Buyer | Residents who want to live in their own home | Lower upfront cost, flexible payment, preferential mortgages | Must hold for at least 1 year; not for flip investors |
| Golden Visa via Property | Investors seeking residency + real estate exposure | Stable residency, equity ownership, long-term value | High capital requirement, upfront cash, visa costs |
Final Thoughts
Dubai’s dual-path strategy creates a more inclusive and diversified property market. On one hand, first-time buyers — who might have previously felt priced out — get special support to step into homeownership. On the other, Golden Visa investors anchor their long-term future to Dubai through real estate, contributing capital and stability to the market.
For prospective buyers: It’s vital to run the numbers, think about your long-term goals, and work with trusted developers and banks. Also, make sure you understand any residency implications (if going the visa route) and your cash-flow strategy (especially for the FTHB plan).
