What First-Time Investors Should Know Before Buying Property

Real Estate & Construction

What First-Time Investors Should Know Before Buying Property

For young professionals and first-time buyers in the UAE, real estate investment is no longer out of reach. With the right financial strategy, expert guidance, and awareness of key factors, even those earning between Dh10,000 and Dh15,000 can begin their journey toward long-term wealth through property ownership.

Industry experts are encouraging early-career individuals to consider disciplined savings as the foundation for property investment. According to Adriano Vichi, co-founder of Monopoly Properties AVS, saving 20–30% of one’s income monthly can help build a down payment of Dh90,000 to Dh180,000 within three to five years, for properties priced between Dh600,000 and Dh900,000.

“Real estate investment is no longer the exclusive domain of high-income earners,” said Vichi. “With the right strategy—understanding the market, choosing budget-aligned areas, and timing entry well—moderate earners can build lasting wealth.”

Breaking Traditional Barriers

The advent of tokenisation and fractional ownership has made investing more accessible than ever. Ayman Youssef, Managing Director at Coldwell Banker, notes that first-time earners and fresh graduates can now invest for as little as Dh2,000.

Tokenisation involves converting a property’s value into digital tokens using blockchain technology, allowing small investors to own fractional shares in real estate assets. This model has dramatically lowered entry barriers, especially for those without full down payments or extensive credit histories.

Where to Invest

Youssef highlights Dubai South as a prime location due to its proximity to the expanding Al Maktoum International Airport, which is expected to drive strong demand for residential and commercial property. He also points to Town Square as another promising area, thanks to its well-planned communities, competitive prices, and planned connectivity improvements with Sheikh Zayed Road.

Watch for Hidden Costs

Despite the promising outlook, Vijay Valecha, Chief Investment Officer at Century Financial, warns against underestimating the true cost of ownership.

“Buyers often ignore extra costs like maintenance, insurance, and utilities,” he said. “These can significantly affect monthly budgets and long-term affordability.”

Valecha also advises young investors to build an emergency fund—covering six months of expenses—before committing to real estate. This safety net can help cushion personal financial shocks such as job loss or unexpected medical expenses.

He suggests that a balanced investment portfolio might include 70% equities, 20% bonds, and 10% in real estate, which can later be adjusted based on individual goals and risk tolerance.

Smart Steps Forward

For young investors, property ownership in the UAE is increasingly within reach. By setting realistic savings goals, understanding evolving real estate models like tokenisation, and staying aware of hidden costs, even those new to the workforce can begin building wealth through smart property decisions.