Mortgage Calculator Dubai

Dubai housing market

• The Dubai housing market has grown rapidly, fueled by quality infrastructure, tax-free incentives, and government policies that attract international investors and expatriates. According to the Dubai Land Department, demand remains strong across luxury and affordable segments, bolstered by residency programs and investor visas.
• Dubai’s property prices have stabilized post-pandemic, with rental yields averaging 6-8% in key areas. Downtown Dubai, Dubai Creek Harbour, and Palm Jumeirah see high occupancy and rising prices, with new sustainable projects underway to meet demand.
• With factors like Expo 2020’s legacy projects and high tourism inflow, Dubai is set to remain a leading property investment destination, attracting investors seeking both growth and high rental returns.

• Higher Loan-to-Value (LTV) Ratios: First-time buyers can finance up to 80% of the property value through select banks, reducing down payment requirements.
• Lower Down Payments: Expatriates typically pay a 20% down payment, while UAE nationals pay as low as 15%, per UAE Central Bank policies.
• Developer Financing & Payment Plans: Many developers offer flexible post-handover payment plans, spreading payments over several years.
• Discounted Registration Fees: Some developers cover all or part of the Dubai Land Department’s 4% registration fee to attract first-time buyers.
• Residency Incentives: Buyers investing AED 750,000+ qualify for long-term residency visas, appealing to those looking to settle in Dubai.

• Initial Down Payment

  Expatriates typically need to budget for a 20% down payment on homes under AED 5 million, while UAE nationals often pay 15% for similar properties. Larger down payments apply to higher-value or investment properties.

• Dubai Land Department (DLD) Registration Fee

  A 4% registration fee is charged by the DLD on the total property value. Occasionally, developers will cover part of this cost for new or off-plan properties, which can alleviate the initial financial burden for first-time buyers.

• Real Estate Agent Fees

  Around 2% of the purchase price typically goes to agent commissions, a standard rate for most real estate agents in Dubai. This fee is paid once the transaction is completed.

• Mortgage-Related Costs

  Mortgage registration with the DLD costs 0.25% of the loan value, plus a small administrative fee. Banks may also charge up to 1% of the mortgage amount as a processing fee, which varies by lender.

• Annual Maintenance Fees

  Maintenance costs depend on the property type and size, covering upkeep for shared facilities and amenities. These fees can vary significantly by location.

• Optional Home Insurance

  While not required, home insurance is advisable to protect against damages, especially for mortgage holders. Premiums vary by coverage type but are relatively affordable.

• Moving, Furniture, and Utility Setup

  New owners should also consider moving costs, furnishings, and utility deposits, like DEWA’s refundable fee of AED 2,000 for apartments or AED 4,000 for villas, plus other setup costs for internet and cooling.

• Sectoral Growth and Economic Diversity

  Dubai's diverse economy includes key sectors like real estate, finance, logistics, and tourism. The Dubai Economic Agenda (D33) targets doubling GDP by 2033, with sectors like tourism growing by 11.1% and logistics by 10.9% in 2023. This multi-sector approach provides stability amid global economic shifts.

• Real Estate Market Strength

  Dubai’s real estate sector offers high returns, particularly in areas like Dubai Marina and Dubai Silicon Oasis, where yields can reach 8-9% annually. This includes options for luxury and affordable properties, appealing to diverse investor needs.

• Financial and Digital Innovation

  Financial services grew 2.7% in 2023, bolstered by investments in digital transformation. Initiatives like Digital Dubai support fintech and data-driven innovation, further solidifying Dubai as a global financial and tech hub.

• Pro-Investment Policies

  Dubai's investment-friendly policies, premier infrastructure, and strategic location attract substantial foreign direct investment. Strong public-private partnerships further drive sectoral growth and connectivity, positioning Dubai as a resilient and highly attractive market. .

These drivers underscore Dubai’s appeal to investors and businesses, highlighting its steady growth and diversified economy.

• Licensed Lenders: Only UAE-licensed banks and financial institutions can offer mortgages. Foreign institutions must partner with a local bank to operate in Dubai.
• Registration Requirement: Mortgages must be registered with the Dubai Land Department (DLD) for validity, protecting both lender and borrower rights.
• Loan-to-Value Limits: Loan caps set by the UAE Central Bank allow up to 80% financing for expatriates and 85% for nationals on properties under AED 5 million.
• Default Protocol: In case of default, lenders provide a 30-day notice before initiating auction proceedings through the DLD, offering borrowers time to address their debt.