Buying a property? 7 mistakes first-time UAE home buyers make

For many UAE residents, buying a home here is a dream that they actively work towards. Many spend years saving up for it and start looking for properties to invest in when they feel that they have made enough to pay a down payment.

Then reality hits: the bank values the property lower than the price you agreed. The 7 or 8 per cent in "hidden fees" you never knew existed eats through your savings.

With seven in ten UAE residents planning to buy property this year, according to recent studies, first-time buyers are flooding the market. But experts warn that enthusiasm without preparation could cause huge disappointments.

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Here are the seven most common mistakes first-time buyers make and how to avoid it: 

Viewing properties before your finances are clear

Many buyers start viewing properties before knowing what they can actually afford.

"Serious buyers should ideally have around 70 to 80 per cent of their finances clear before they start viewing properties," says Muhammad Ali Khan, Sales Manager at Banke International Properties.

This doesn't mean every detail must be finalised, but the buyer must know exactly how much cash they can put down, what mortgage they will likely qualify for, and what monthly repayment feels comfortable.

"I've personally seen many buyers fall in love with a property, emotionally commit to it, and only later realise that banks wouldn't approve the required loan amount," Khan adds.

Solution: Get mortgage pre-approval before you view a single home.

Underestimating hidden costs

Many people make the mistake of focusing heavily on the down payment and forgetting about a series of transaction-related fees.

“The 'hidden costs' like registration fees, mortgage charges, and post-handover fit-out costs are often underestimated,” said Elie Naaman, CEO and Co-Founder of Ellington Properties.

These include Dubai Land Department transfer fees, agency commission, bank valuation and processing charges, trustee fees and developer No Objection Certificate fees. Together, they can add up to 7–8 per cent of the property value, according to Muhammad.

"I've dealt with situations where a buyer had saved enough for the down payment but hadn't budgeted for these additional charges," he says. "That often leads to last-minute scrambling, delays in closing, or unnecessary stress."

Solution: Calculate these costs before you start shopping. On a Dh2 million property, that's an extra Dh140,000–Dh160,000 you'll need in liquid cash.

Not factoring in service charges and maintenance

The purchase price is just the beginning. What happens after you move in?

"Buyers often underestimate service charges and future maintenance costs, especially for older properties," warns Svetlana Vasilieva, Head of Secondary Sales at Metropolitan Premium Properties.

These ongoing fees can significantly impact your monthly budget, yet many first-timers overlook them entirely while focusing on the initial purchase.

Solution: Request the service charge history for any property. Factor it into long-term affordability calculations.

Assuming banks finance 100%

A common misconception is that banks will cover the full property value. But the reality is different. “Expat buyers typically receive 70–80 per cent financing at best," Muhammad said. "All associated fees must be paid upfront in cash."

If the bank's valuation comes in lower than the agreed purchase price, the buyer will also need to inject additional cash to bridge the gap.

Solution: Work with a mortgage advisor early. Understand exactly what percentage of bank loan will be available and have other properties as back-up options.

Comparing mortgage payments to rent

Many UAE residents think that they can convert their monthly rent payments into mortgage paymenets. "While the monthly instalment may appear similar on paper, buyers often forget to account for interest rate fluctuations, service charges, insurance, and long-term ownership costs," Muhammad explains. "These additional expenses can materially affect affordability over time."

Solution: Build a complete monthly ownership budget that includes everything — not just the mortgage principal and interest.

Not having paperwork in order

Buyers can change their minds but in some cases this can be costly. “Once a Form F is signed, withdrawing becomes difficult and penalties apply," said Svetlana

Beyond buyer's remorse, documentation issues plague many transactions: missing No Objection Certificates, title deed discrepancies, delays in clearing existing mortgages on the seller's side.

"Buyers often underestimate how strict banks and developers are when it comes to paperwork and deadlines, especially in the secondary market," Muhammad added.

Solution: Ensure every document is in order before signing. Work with experienced agents and lawyers who can spot potential issues early.

Skipping pre-approval

Around 15 to 20 per cent of buyers face challenges during pre-approval or receive loan offers significantly lower than expected. The most common reasons are insufficient fixed income, high existing liabilities like personal loans and credit cards, short employment history in the UAE, or incomplete documentation.

Self-employed buyers and recent residents face even more scrutiny. "When buyers skip the pre-approval stage altogether, it often leads to wasted time, disappointment, and failed transactions later in the process," Muhammad warned.

Solution: Get pre-approval before seriously viewing properties. It takes a few days and saves months of heartache.