First time buyers: a step-buy-step guide to purchasing a home in Dubai

Decided to take the plunge and invest in a property in Dubai? Here’s what you need to consider along the way.

Buying a house for the first time is a serious life milestone – the good news is, whether you're looking for a luxurious apartment, a cozy townhouse, or a spacious villa, Dubai has something for everyone.

To make your journey smoother, we've put together this friendly yet professional step-by-step guide about how to buy a house for the first time.

Step 1: Set a budget and do your research

First things first – setting a reasonable budget. This involves not only the purchase price but also additional costs like registration fees, agent commissions, and maintenance fees. A good rule of thumb is to allocate around 25-30% of your monthly income for mortgage payments.

Once that’s figured out, it's essential to do your homework before diving into the property market. Research the various neighbourhoods in Dubai to find one that fits your lifestyle and preferences. Consider factors such as proximity to work, schools, community amenities, and public transportation. Check out our area guides.

Step 2: Get pre-approved for a mortgage

If you're planning to finance your purchase with a mortgage, getting pre-approved is a crucial step. This process will give you a clear understanding of how much you can borrow and show sellers that you are a serious buyer.

Contact several banks to compare their mortgage offers. Consider factors such as interest rates, loan tenure, and repayment options. Once you've chosen a lender, gather all the necessary documents (passport, visa, proof of income, bank statements) to complete the pre-approval process.

Want help? We have an impartial mortgage advice service and an easy-to-use calculator to help work out how much you can borrow.

Step 3: Hire an experienced real estate agent

Probably the most important step on the journey if you want to get a property you love in the right area. A professional, experienced real estate agent will be an invaluable asset in your property search. They have in-depth knowledge of the Dubai market, can provide expert advice, and help you find properties that meet your criteria – they also have access to ‘on the ground’ info and tips that you won’t find elsewhere.

When selecting an agent, look for someone with a great reputation, solid references, and experience in the area you're interested in. A good agent will guide you through the entire process, from property viewings to negotiations and finalising the sale.

Step 4: Start property hunting

With your budget and pre-approval in hand, and a trusted agent by your side, you can start viewing properties. Take your time to visit different options (if you’re in the country) and don't be afraid to ask questions. Think about factors like the property's condition, age, and any potential renovation costs.

Top tip: Make a checklist of your must-haves and nice-to-haves to help you stay focused.

It’s also wise to visit the property at different times of the day to get a better understanding of the neighborhood’s vibe.

Step 5: Make an offer

Once you’ve found the perfect property, it's time to make an offer. Your agent will help you determine a fair price based on market conditions and comparable properties in the area.

If your offer is accepted, you’ll need to sign a Memorandum of Understanding (MOU) with the seller. This document outlines the terms and conditions of the sale, including the purchase price and completion date.

Step 6: Hire a lawyer (if you think you need one)

Although it's not mandatory, hiring a lawyer is highly recommended to protect your interests. A lawyer will review the MOU, handle the legal aspects of the transaction, and ensure all paperwork is in order.

Step 7: Secure financing

With the MOU signed, you’ll need to finalise your mortgage. Submit the signed MOU and any additional required documents to your lender. Once the mortgage is approved, the bank will issue a final offer letter.

Step 8: Transfer ownership

The final step in your property purchase is the transfer of ownership. This is done at the Dubai Land Department (DLD). Both you and the seller (or your representatives) must be present to complete the transaction.

You’ll need to pay the property transfer fee (typically 4% of the purchase price) and any outstanding agency fees. The DLD will then issue a new title deed in your name, officially making you the property owner.

Step 9: Move in…

Mabrouk! You’re now the proud owner of a property in Dubai. Before moving in, make sure to take care of any necessary maintenance or renovations, as well as setting up utilities, internet, and any other services you may need.

Ready to buy? Talk to one of our sales team