Mortgage landscape in Dubai remains resilient as Fed holds rates steady
The mortgage landscape in Dubai remains resilient as the US Federal Reserve held interest rates steady earlier this month at 4.25 per cent-4.50 per cent, a move that signals stability for global financial markets.
Mortgage transactions at Lomond, an affiliate of Betterhomes, have increased by 4.39 per cent in 2024 compared to 2023. However, the overall value of mortgages decreased by 3 per cent during the same period.
With Dubai's real estate sector continuing to attract investors and end-users alike, the mortgage market is experiencing sustained demand, driven by favourable lending conditions.
'We haven't seen any slowdown in buyer demand due to interest rates. In fact, March has seen a significant increase in buyer enquiries compared to last year. While a rate cut is always welcomed, Dubai's real estate market remains confident and not over-leveraged. It is also important to note that the market has experienced unprecedented price growth over the last four years, most of which was during an upward cycle in interest rates,' said Louis Harding, CEO at Betterhomes.
According to the (DLD) Dubai Land Department's data, Dubai's mortgage activity continues to rise in 2025. Transactions were up 4.76 per cent from 2,919 in January to 3,058 in February. Total mortgage value increased 32.14 per cent from Dh10.86 billion (January) to Dh14.35 billion (February). As of March 19, 2,065 transactions were recorded with a total value of Dh10.26 billion, showing continued market strength.
'This sustained growth indicates strong buyer confidence and increased accessibility to home financing, with favourable loan-to-value (LTV) ratios offering up to 80 per cent financing for first-time buyers. Although the UAE Central Bank recently advised banks to stop adding associated fees financing to mortgages, the number of mortgage buyers remains largely unaffected,' said Jeffrey de Souza, Head of Mortgages at Lomond.
With interest rates stabilising, buyers may consider securing fixed-rate mortgages to lock in predictable payments, Betterhomes said. 'While mortgage rates are stable for now, future shifts in global markets could impact lending conditions—making this a strategic time to explore financing options,' the brokerage added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
a day ago
- Khaleej Times
Why millionaires are migrating to Dubai and what it signals
Amid intensifying global scrutiny of wealth and rising tax pressures, Dubai is emerging as a strategic base for high-net-worth individuals seeking long-term security, capital preservation, and global mobility, a new report says. Betterhomes' latest mini-paper, Dubai: No Longer a Pit Stop, But the Finish Line for Global Wealth, shows that in less than ten hours, residents can easily connect with major cities worldwide, whether it's for business or leisure, highlighting Dubai's strategic location and seamless access to global markets. 'Far from being a transient luxury hub, the city is becoming a permanent home for the world's elite, drawn not only by its favourable tax regime and political stability but also by its infrastructure, safety, and unmatched global access,' the report says. This shift reflects more than a property trend; it signals a structural recalibration of global wealth flows. As legacy cities like London, San Francisco, Hong Kong, and Paris grapple with rising taxes and growing instability, Dubai offers rare clarity: low tax, luxury lifestyle, and a robust infrastructure. In a world increasingly challenging wealth creation, Dubai stands out as a stronghold for the financially free, where wealth is not only respected but celebrated. Here, policies are designed to attract, not restrict, enabling individuals to safeguard their wealth, plan their legacies, and influence global markets from a secure base. As of December 2024, the UAE was ranked as the 14th largest wealth market globally, with 130,500 dollar millionaires, reflecting a 98% surge over the past decade, data shows. A historic migration surge Betterhomes anticipates a substantial surge of international wealth flowing into Dubai in 2025. This influx is projected to significantly reshape Dubai's standing within the global financial system. 2024 marked a significant peak in global millionaire migration, with over 134,000 individuals possessing at least $1 million in liquid investable assets relocating across borders. Early forecasts for 2025 suggest this figure will rise further, with approximately 142,000 high networth individuals expected to move internationally in search of security, stability, and opportunity. If even 5% of this cohort were to choose Dubai, the emirate would welcome an estimated 7,100 new millionaires, Betterhomes estimates. These are not transient tourists, but capitalised entrants arriving with substantial liquidity. At a conservative estimate, this would represent an inflow exceeding $7.1 billion (Dh26 billion), equivalent to nearly half of Dubai's total foreign direct investment for 2024. In a market defined by momentum and investor confidence, such capital inflows serve as both signal and catalyst. Diverse origins of wealth migration The origins of this capital migration are as diverse as they are strategic. Some arrive from East Asia, including Chinese entrepreneurs establishing offshore holdings in response to domestic policy shifts. Others are Vietnamese investors diversifying against rising political and economic uncertainty. From Turkey and Argentina come wealthy individuals seeking refuge from currency depreciation and systemic volatility. Even within established markets, such as the United Kingdom or the United States, Dubai is increasingly perceived as a pragmatic choice for capital preservation and growth, analysts say. These new arrivals are not mere spectators; they are institution builders, family office founders, and long-term strategists. They bring with them enterprises, teams, and a forward-looking mindset. Their presence underscores a growing recognition of Dubai not simply as a taxefficient jurisdiction, but as a platform for legacy, influence, and sustained wealth creation. 'Dubai's real estate market is no longer driven by speculation, but by strategic, long-term capital. We are seeing global wealth not just arrive, but anchor itself here, in branded residences, legacy properties, and high-quality developments built for permanence. As millionaire migration accelerates, the city's property sector will continue to evolve from a cyclical opportunity into a structural asset class. Dubai is not only a magnet for capital, it is becoming the benchmark for global residential investment,' said Louis Harding, CEO of Betterhomes.
Hi Dubai
4 days ago
- Hi Dubai
Dubai Real Estate Attracts Global Investors Amid US Tariffs, Says Betterhomes Report
Dubai's property market is emerging as a global safe haven for investors amid rising US tariffs on steel and aluminum, according to a new white paper released by Betterhomes. The report, titled Will Trump's Tariffs Impact UAE Real Estate?, outlines how recent US trade measures are reshaping investor sentiment. While the tariffs are primarily aimed at industrial sectors, their ripple effects are being felt across global markets—including real estate. Betterhomes notes a surge in interest from US and Chinese investors, with inquiries up by over 40% and website traffic from those countries jumping 60%. 'Investors are looking for stability, and Dubai is offering that,' said Louis Harding, CEO of Betterhomes. 'We've seen a clear shift since the tariffs were introduced.' The findings align with previous research showing Dubai as a magnet for global wealth. The city now leads in attracting relocating millionaires, highlighting its rising status as a destination for luxury living and strategic investment. Despite global uncertainty, the UAE's economic outlook remains strong. A growing population, robust oil production, a record-breaking 19 million tourist arrivals in 2024, and over 3,500 ongoing infrastructure and real estate projects are fueling confidence. Dubai also plays a significant role in global trade, exporting 350,000 tonnes of aluminum to the US last year, especially for use in key sectors like aerospace and construction. Looking ahead, the emirate's Real Estate Strategy 2033 and national plans to double foreign investment to $65 billion signal a long-term vision. With targets to boost housing supply and increase homeownership to 33%, Dubai is positioning itself as more than just a luxury hotspot—it's aiming to become a central hub in the global property market. News Source: Betterhomes
Campaign ME
5 days ago
- Campaign ME
Property Finder ‘drives success' by offering SuperAgents keys to branded supercars
Property Finder has taken to the streets to celebrate the brand's 'SuperAgents' in a bold and unconventional way by offering them keys to branded supercars, including Ferraris and Lamborghinis, for an exclusive three-day driving experience. Who are these 'SuperAgents'? Property Finder leverages artificial intelligence through its Agent Data Assistant (ADA) to create an AI-driven ranking system that identifies top-performing agents based on stringent criteria. This initiative identifies 'SuperAgents' and incentivises elevated agent performance, allowing consumers to connect with trustworthy, capable agents. Such SuperAgents were rewarded through the supercar activation in the UAE, with supercars bearing the slogan 'Property Finder Drives My Success' captured on social media by these agents and passers-by, extending the brand's reach and impact. The eye-catching cars, featuring Property Finder's distinctive branding, were handed over to 'SuperAgents' from ten leading agencies including: Betterhomes, Allsopp & Allsopp, haus & haus, Driven Properties, fäm Properties, MD Properties, Engel & Völkers, Treo, Provident Estate, and Metropolitan Premium Properties. In conversation with Campaign Middle East, Sevgi Gur, Chief Marketing Officer at Property Finder, said, 'The supercars wrapped in Property Finder branding provided a bold way to reward top-performing agents while reinforcing our brand's premium positioning. Instagram was chosen as the primary channel because it's where both agents and consumers actively engage, making it ideal for sharing and amplifying success stories.' 'By encouraging agents to post and resharing their content, we extended the campaign's reach organically. This approach directly supports our objective of celebrating excellence, increasing agent motivation, and strengthening Property Finder's leadership and visibility in the market,' Gur added. For the three-day activation, red cars were leased from three different rental agencies to ensure that the vehicles matched the brand's distinctive colour. All the designs on the cars were created in-house at Property Finder. The campaign intended to to reinforce Property Finder's brand positioning as an industry leader that celebrates talent and drives innovation Commenting on the success metrics of the activation, Gur explained, 'Our main goal was to celebrate our top-performing agents. With this in mind, success will be measured primarily through agent feedback. Secondary metrics include: Social media reach and engagement of Property Finder content; new followers to Property Finder's Instagram channel; media engagement and interest in the activation; as well as quantity and reach of user generated content.'
