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7/3/25, 9:29 AM Dubai property boom: Surge in mortgage financing and investor interest | Khaleej Times

Engineer Amer Khansaheb, Chief Executive Officer and Board Member, Union Properties, said traditionally, Dubai has been a cash-dominant property market,
particularly in the luxury segment, where high-net-worth individuals prefer the speed and flexibility of cash transactions.
“Supporting this trend, banks in the UAE have eased mortgage conditions, offering more competitive interest rates, some now below 4%, and
extended post-handover payment options. Financing structures such as 70-30 or 80-20 plans are also offered by banks, making it more
accessible and helping bridge the affordability gap for a wider segment of the population,” he said.

“As the market continues to stabilise, we expect mortgage-financed purchases to grow steadily in the coming months. At Union Properties, we see
this shift as a positive development. It reflects a market that supports sustainable growth by encouraging long-term investment over speculative
buying,” he said.

Arran Summerhill, Chief Operating Officer of Holo — the Middle East’s first digital mortgage platform as part of the Wamda X programme, echoed
similar vies and said mortgage financing is growing at a steady pace in the UAE.

“Cash still reigns, but mortgage financing is gaining fast. First quarter 2025 data highlights D33 billion in cash deals versus Dh21 billion in financed
purchases in Dubai. That said, mortgage penetration is rising. The sentiment in the market has shifted, and we are seeing many more end users
entering the market along with investors. Historically, the market was dominated by investors,” he said.

Mortgage Financing Rising
Summerhill agrees that the UAE mortgage market is an indirect beneficiary of the UAE’s post-pandemic property boom, fuelled by foreign
investment and the government-led reforms.

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