Is Now a Good Time to Get a Mortgage in Dubai?
The question of timing is always important when it comes to big financial decisions, and getting a mortgage in Dubai is no exception. With the property market going through changes in 2025, buyers are wondering if it’s the right moment to take that step. The answer isn’t simple, but by looking at current market conditions, interest rates, government policies, and overall confidence in the real estate sector, we can get a clearer picture.
Interest Rates Are Still Reasonable
One of the biggest factors that affect mortgage decisions is the interest rate. As of now in 2025, mortgage interest rates in the UAE are still considered quite competitive. While they have slightly increased compared to a couple of years ago, they remain within a range that is manageable for most middle- and upper-income buyers. Many banks in Dubai are offering fixed-rate mortgages, giving buyers the option to lock in their rate for a few years, which is a smart move in uncertain economic times. Also, compared to global markets, Dubai still offers relatively better conditions for borrowing. This is good news for both first-time homebuyers and those looking to upgrade their homes. The idea is that locking in a rate now could save you from higher monthly payments if interest rates rise in the future, which is always a possibility depending on international economic shifts.
Some banks are also offering incentives to attract new mortgage customers. These can include reduced processing fees, faster approvals, and flexible repayment terms. For people who already have a mortgage, some banks are open to refinancing options to help lower monthly payments. The financial environment is clearly tilted in favor of buyers who are well-prepared and ready to take the leap.
Property Prices Are Holding Steady
In 2025, Dubai’s property prices will be stable overall. Certain areas like Dubai South, JVC, and parts of Mohammed Bin Rashid City are showing steady demand without dramatic spikes in price. This gives buyers a bit of breathing room. There’s no rush like in overheated markets, but also no sharp decline that would indicate risk. Stability in property pricing is a good sign for anyone looking to buy for the long term. It means you’re not entering the market at a peak where values could suddenly drop. For people looking to live in the property instead of flipping it quickly, this kind of market provides a secure entry point. You have time to research and choose wisely, rather than rushing into a deal due to fear of missing out.
In many cases, developers are offering competitive pricing to attract serious buyers. Some are bundling in furniture, service fee waivers, or post-handover payment plans. These extras can make the total value of the property more attractive. When combined with stable pricing, these incentives create a good environment for taking out a mortgage and investing in a property that suits your long-term needs.
Government Initiatives Boost Buyer Confidence
Over the last few years, the Dubai government has introduced several initiatives that support property buyers. Long-term visas, retirement visas, and residency linked to property ownership have encouraged more people to consider buying a home rather than renting. These programs have added a sense of security, especially for expatriates who now feel more confident about making long-term investments in the country. This confidence boost is not just emotional—it translates into practical decisions. More people are now considering owning homes in communities with schools, healthcare, and public transport nearby. These are signs of a maturing property market, and mortgages are naturally becoming a bigger part of that landscape. People want to own homes, not just temporarily live in rental units.
In addition to residency reforms, the government has worked with developers and financial institutions to promote transparency in transactions. Buyers today have access to more verified data, online tools for comparison, and support services that didn’t exist a few years ago. These changes make the process less stressful and more transparent, which plays a major role in whether someone decides to apply for a mortgage today.
Changing Rules Around Mortgage Costs
One of the recent changes that buyers should be aware of is the new rule around upfront costs. As of early 2025, banks are no longer covering the Dubai Land Department’s 4% registration fee or the typical 2% brokerage fee. This means buyers need to have more cash on hand during the purchase. While this sounds like a downside, it actually pushes the market towards more financially stable buyers. It reduces impulsive purchases and encourages people to plan better, which is a positive thing in the long run. Buyers who are prepared for these costs are also more likely to stay committed to their investments.
This change also brings Dubai’s mortgage market in line with global practices. In most other major cities around the world, buyers are expected to handle these costs themselves. So while it may feel like an additional burden now, it reflects a shift toward a more mature and responsible home-buying culture in Dubai. Banks and developers are adjusting to this change too. Some developers are offering incentives to help offset the costs, such as partial fee waivers or discounts. Others are working with banks to create financing packages that allow buyers to stretch these expenses over time. If you’re aware of these options and plan well, the upfront costs should not be a deal-breaker.
The Bottom Line: Who Should Consider Buying Now?
So, is now a good time to get a mortgage in Dubai? It depends on your personal situation. If you have a stable income, a clear plan for staying in Dubai, and enough funds for the upfront costs, then yes—now could be a great time. The market is not overheated, interest rates are still friendly, and the city continues to grow as a global hub. Dubai is still viewed as a safe investment location, with strong infrastructure, low crime, and a pro-business environment. These factors continue to attract foreign investors and long-term residents. If you’re one of them and have been thinking about settling down, this year could be your opportunity. However, if you’re uncertain about your job situation or might leave the UAE soon, it might be better to wait. Mortgages are long-term commitments, and being financially ready is more important than trying to time the market perfectly. Speak to a mortgage advisor, understand your eligibility, and make a decision based on your own financial goals. For those who are ready and informed, the current environment offers a balance of opportunity and stability. With good planning, now could be your moment to step into Dubai’s property market with confidence.