Dubai real estate‘s mortgage sector continues to demonstrate resilience as the US Federal Reserve maintains interest rates at 4.25 percent-4.50 percent, providing stability across global financial markets, a new report by Betterhomes revealed.
The emirate’s real estate market is seeing consistent demand for home financing, supported by current lending conditions.
“We haven’t seen any slowdown in buyer demand due to interest rates. In fact, March has seen a significant increase in buyer enquiries compared to last year. While a rate cut is always welcomed, Dubai’s real estate market remains confident and not over-leveraged. It is also important to note that the market has experienced unprecedented price growth over the last four years, most of which was during an upward cycle in interest rates,” Louis Harding, CEO at Betterhomes said.
Dubai mortgage market maintains momentum despite US fed rate hold
Data from the Dubai Land Department (DLD) reveals an increase in mortgage activity across the first quarter of 2025:
- Transactions rose 4.76 percent from 2,919 in January to 3,058 in February
- Total mortgage value increased by 32.14 percent from AED 10.86 billion in January to AED 14.35 billion in February
- March performance (as of March 19) reached 2,065 transactions with a total value of AED 10.26 billion
Lomond, a Betterhomes affiliate, reported a 4.39 percent increase in mortgage transactions for 2024 compared to 2023, though the overall mortgage value decreased by 3 percent during the same period.
“This sustained growth indicates strong buyer confidence and increased accessibility to home financing, with favourable loan-to-value (LTV) ratios offering up to 80% financing for first-time buyers. Although the UAE Central Bank recently advised banks to stop adding associated fees financing to mortgages, the number of mortgage buyers remains largely unaffected,” Jeffrey de Souza, Head of Mortgages at Lomond added.
With interest rates stabilising, property purchasers may benefit from securing fixed-rate mortgages to ensure predictable payments. Both expats and UAE nationals continue to enjoy competitive financing options.
While the current mortgage landscape remains steady, potential future changes in global markets could impact lending conditions, suggesting this may be a strategic period for buyers to explore financing options.
Follow us on
