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

For a purchase under Dh5 million, a buyer is required to put a 20% deposit as an expat and 15% deposit as an Emirati while for over Dh5 million this changes to a
larger down payment.
“Whilst the central bank governs these entities, brokerages are governed under RERA which also has strict rules relating to consumer protection
and cold calling. Despite this it is recommended to stay vigilant with where your documents are being sent and stored whilst ensuring you are
receiving the best advice on products available.”

To a question about the challenges to mortgage financing market, he said there is a need to introduce reforms to secure interests of the
stakeholders.

“Since 2020 to mid-2025, we have seen an increase in property pricing of 124%, whilst this is the case, we have not seen any reform in the caps
put in place for maximum loan financing,” he said.
For a purchase under Dh5 million, he said a buyer is required to put a 20% deposit as an expat and 15% deposit as an Emirati while for over Dh5
million this changes to a larger down payment.
“Given the normal family home prior to 2020 was sub Dh5 million, it is likely this has significantly increased, which is forcing families to consider
other options to cater to the availability of funds. Despite these challenges, we have yet to see a major impact on buyer sentiment,” he said.
Long-term Mortgage Financing

About long-term mortgage financing to own a property in the UAE, Summerhill said it’s evolving into something tangible.

“Expat LTVs remain at 80% for first-time buyers, with many lenders offering five-year fixed rates as low as 3.99 – 4.24%. With UAE banks growing
lending portfolios by 27% year-on-year basis in January-March 2025 quarter, mortgage appetite is gathering momentum this create competition
within rates, benefiting consumers,” he said.
“Whilst the long-term mortgage is not a dream for consumers, it is a means to step onto the property ladder and make a house a home. The
average life cycle of an expat in the UAE has significantly increased, and having paid rent for five years plus, many believe that making the step to
buy a property is a financial decision and lifestyle decision which will benefit them in the long run,” he added.

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