UAE Interest Rates Drop: More Dubai Property Buyers Opt for Mortgages Over Cash

More Dubai Property Buyers Opt for Mortgages Over Cash

In September, mortgage buyers in Dubai got a significant boost with the first interest rate cut in over four years, as rates dropped by 0.5%. This change has led to a noticeable shift in the market, with more property buyers opting for mortgages instead of cash. During the third quarter of 2024, over 60% of buyers chose mortgages to finance their home purchases, marking an 8% increase compared to the previous year. The decrease in interest rates, coupled with Dubai's relatively low rates compared to other global cities, has made mortgages an attractive option for buyers, especially in the face of rising rents.

Lower Interest Rates Fuel Increased Buyer Interest

The decision by the Central Bank of the UAE to reduce the Base Rate for the Overnight Deposit Facility by 50 basis points, from 5.40% to 4.90%, aligns with the global trend of rate cuts as inflation cools. This rate reduction means cheaper borrowing options for UAE consumers, including personal loans, mortgages, and auto loans, thereby boosting economic activity. As borrowing becomes more affordable, there has been an influx of new buyer enquiries, particularly from tenants seeking to escape rising rental costs by purchasing their own homes.

Perfect Time to Buy Your Dream Home or Invest in Dubai Properties

With interest rates at their lowest in years, now is the ideal moment to purchase your dream home or make a smart investment in Dubai's thriving property market. The recent rate cuts have made borrowing more affordable, offering a unique opportunity for buyers to secure competitive mortgage deals. Don’t miss out on the benefits of owning a property in one of the world's most dynamic real estate destinations.

Explore our premium property listings today and take the first step towards owning your ideal home. Contact us to learn more about available mortgage options and get started on making your investment a reality.