The UAE has become widely recognised as a place of opportunity in a world struggling with sluggish economic growth. Abu Dhabi and Dubai consistently appear in regional and global lists for an enviable quality of life that goes hand in hand with a dynamic and diversifying economy. Over the years, Dubai’s glittering skyline became synonymous with glamour and luxury living. But there is a more nuanced picture, and that is increasingly true in Dubai's housing market, too.
Less than a week ago, Dubai Land Department announced that the emirate was teaming up with 13 developers and five banks to launch a scheme that would support first-time buyers who want to get their foot on the property ladder. Participating developers will offer flexible payment plans, priority access to new homes and discounts on the sales price of off-plan units. Banks will be able to offer mortgages with better interest rates, faster approval times and reduced fees and buyers will be able to pay the DLD registration fee through banks or credit cards at zero-interest rates. There is no minimum salary requirement and Emirates ID holders of any nationality who are aged 18 and above can take part.
It is a comprehensive package of measures that has the potential to revolutionise Dubai’s property market – but it could achieve much more than that. With the UAE’s residency permits for retired people and remote workers, as well as the expansion of its 10-year golden visa programme and overall economic growth, the country is increasingly becoming a place that attracts people from all walks of life, not for a few years, but for the long term. By making home ownership a realistic possibility for more people, the country is not only empowering residents, it is also laying the foundations for a strong society and sustainable future.
The DLD expects 5,000 new investors to enter the market this year following the initiative. Potentially, this could mean thousands more families either owning a home in the UAE or acquiring an important asset that could generate wealth for generations to come. Many homeowners invest time and money not only in their properties but in their neighbourhoods and communities too. By helping to make homeownership a reality for more people, Dubai can expect to develop even more cohesive neighbourhoods with strong community bonds, which could increase the emirate’s appeal in a competitive global market for international talent.
The scheme also offers more immediate benefits. An energised real-estate sector means more construction activity, leading to significant job creation as building materials manufacturers, architects, workers and tradespeople find themselves in demand. Of course, such demand will be closely managed – even the most well-designed and implemented first-time buyers’ scheme is vulnerable to fluctuating property prices.
As the UAE continues its evolving journey, giving people the opportunity to accumulate intergenerational wealth – as well as fulfilling the human need to have a home of one’s own – is likely to pay dividends in the future for society as a whole.
