Dubai — Dubai’s newly launched ‘Dubai First Home’ initiative is providing a compelling opportunity for first-time property buyers, offering up to 10% discounts on eligible property values and reductions on related processing fees. However, mortgage interest rates will remain unaffected, at least for now.
Developers such as Emaar, Nakheel, Azizi, and Binghatti, among others, have joined the programme under the Dubai Land Department, collectively aiming to attract a fresh wave of end-user investors in the emirate’s housing market.
“From what I understand, there will be a 0.25% reduction in bank processing fees, but mortgage rates themselves will stay in line with the market,” a senior developer official confirmed.
Currently, mortgage rates in the UAE hover around 3.99% for the initial 2–3 years, after which variable rates apply. While direct reductions on interest rates are not part of the scheme, buyers still stand to gain if US interest rates drop, which could lead to downward adjustments in UAE bank lending rates later this year.
“Banks may waive valuation or processing fees, but are unlikely to offer deep mortgage rate cuts under this initiative,” said Yash Trivedi, Co-founder of Youae Mortgages. “Still, buyers could save Dh8,000 to Dh10,000 over the fixed-rate period.”
So far, 13 developers are participating in the programme, with more expected to join in the coming months. Eligible properties are capped at a value of Dh5 million, targeting first-time buyers looking for mid-range to premium residential options.
As UAE real estate stabilizes and more banks align with the programme, buyers could see incremental financial advantages, especially if expected US Federal Reserve cuts materialize and ripple into regional lending markets.
