Abu Dhabi has been ranked among the world’s 10 most affordable cities for first-time homebuyers – the only one outside Europe to make the list.
A study by Bloom Holding found that the most affordable cities for younger buyers are largely concentrated in eastern Europe, where lower property prices and higher savings rates make entering the housing market easier. Abu Dhabi is the exception as the only Middle Eastern city to feature in the top ten.
Researchers assessed cities using several indicators, including average monthly income, deposit requirements and savings rates, to estimate how long it would take someone who started saving at 23 to afford their first home. In Abu Dhabi, strong earnings and the UAE’s zero per cent income tax help shorten that path to ownership despite relatively high property prices.
The findings highlight the importance of house price-to-income ratios in determining affordability.
Dubai recently launched a first-time homebuyer programme to make ownership more accessible to residents. The initiative, announced in July 2025 by the Dubai Land Department and Department of Economy and Tourism, offers benefits such as discounted pricing on select developments, flexible payment plans and tailored mortgage options through partner banks.
The move is part of a broader effort to help younger residents and mid-income earners take their first step on the property ladder, reflecting growing recognition across the UAE of the importance of housing affordability in building long-term economic stability.
