Top 5 Mistakes Immigrants Make When Buying Dubai Property for the First Time

Buying your first home in Dubai may feel like the start of a new life. The skyline, the modern lifestyle, the sense of possibility… it all hits differently when you’re an immigrant working hard to build a future here. And with Dubai ranking 4th in the IMD Smart City Index 2025, it’s easy to see why so many people want to plant their roots in this city.

But before you sign any papers or transfer a single dirham, stop.

Make sure you’re not about to make the same costly mistakes thousands of first-time buyers make that can lead to legal issues or missed opportunities. Here we’ll explain the top 5 mistakes immigrants make when buying property in Dubai, and you should not!

1. Not Understanding the Dubai Real Estate Market

Not understanding the structure of Dubai’s real estate market can lead buyers to choose the wrong location, misunderstand ownership rights, or misjudge long-term value. Unlike many other regions, Dubai’s real estate market is highly segmented and regulated, with clear distinctions between freehold and leasehold areas.

• Freehold Areas: Allow foreigners to own property outright. Popular freehold communities include Downtown Dubai, Dubai Marina, Jumeirah Lake Towers (JLT), Palm Jumeirah, and Business Bay.
• Leasehold Areas: Typically offer 99-year leases.

2. Neglecting Financing and Mortgage Planning

Financial planning is crucial when buying property in Dubai. Many immigrants underestimate the true cost of owning property beyond the purchase price. These costs include:

• Dubai Land Department (DLD) Fees: Typically 4% of the property value.
• Real Estate Agent Commissions: Around 2% of the purchase price.
• Annual Service Charges: Depending on the community, fees for maintenance, security, and shared amenities can range from AED 10 to AED 40 per square foot.

Mortgage regulations also vary based on residency status. Expatriates are often required to provide larger down payments, usually 25–30% for first-time buyers, while UAE nationals may need as little as 20%. Loan-to-value (LTV) ratios differ, and not meeting mortgage eligibility criteria can lead to declined applications or financial strain.

A Dubai real estate consultancy can assist buyers in understanding mortgage options, planning budgets, and calculating the total cost of ownership to avoid surprises.

3. Overlooking Location and Community Factors

Dubai offers a wide range of residential options, from downtown apartments to suburban villas. First-time buyers often focus on aesthetics or price alone, ignoring critical factors such as community, amenities, and infrastructure.

When buying property in Dubai, it’s essential to consider:

• Proximity to workplaces or schools
• Access to public transportation and highways
• Community facilities such as parks, gyms, and shopping areas
• Future development plans that could affect property value

4. Focusing Only on Short-Term Gains

Many first-time immigrant buyers chase quick returns by treating Dubai property like a short-term flip rather than a long-term asset. They often buy off-plan, expecting prices to jump before handover, follow market hype, hoping to resell within months, or rely on short-stay rentals like Airbnb for fast cash flow without studying regulations or demand.

While Dubai’s market can offer quick gains, such strategies are risky. Prices fluctuate, and areas that seem profitable today may lose value if development slows or demand shifts.

Long-term considerations include:

• Rental yields: Ensure steady rental demand in the area
• Capital appreciation: Look for neighborhoods with planned infrastructure projects
• Resale potential: Choose properties that appeal to both local and international buyers

5. Not Researching Developers or Projects

Some immigrants make decisions based solely on visuals, marketing materials, or promises, neglecting to investigate the developer’s history. This can lead to:

• Delayed Projects: Developers with poor track records may take years to complete projects.
• Quality Issues: Poor construction can reduce the property’s value and require additional maintenance costs.
• Lack of Support: Some developers offer minimal post-sale assistance, leaving buyers with unresolved issues.

It’s critical to check:

• Developer reputation and financial stability
• Completion history of previous projects
• Customer reviews and legal compliance

Buy your dream property with Archers MENA, your trusted Dubai real estate consultancy provider.

Contact Archers at:

📞 +971 58 557 8987
📧 info@archersmena.com
🌐 www.archersmena.com