Dubai, UAE – Dubai’s real estate market continues to thrive as the US Federal Reserve maintains interest rates at 4.25%–4.50%, reinforcing stability in global financial markets. According to the latest Dubai Land Department (DLD) data, mortgage transactions in Dubai have surged in early 2025, reflecting sustained demand from investors and homebuyers.
Dubai Mortgage Transactions Rise Despite Global Economic Trends
DLD reports a 4.76% increase in mortgage transactions—from 2,919 in January to 3,058 in February 2025. The total mortgage value also jumped 32.14%, reaching AED 14.35 billion in February compared to AED 10.86 billion the previous month. As of March 19, 2025, over 2,065 mortgage transactions worth AED 10.26 billion have been recorded, signaling robust market confidence.
Betterhomes & Lomond Report Growing Buyer Demand
Despite stable interest rates, Lomond (a Betterhomes affiliate) saw a 4.39% rise in mortgage transactions in 2024, though the total value dipped slightly by 3%. Louis Harding, CEO of Betterhomes, noted:
“Dubai’s real estate market remains resilient, with no slowdown in buyer demand. March 2025 has seen a surge in enquiries compared to last year. Even with rising interest rates in recent years, Dubai’s property market has delivered strong price growth without over-leverage.”
First-Time Buyers Benefit from Favorable Mortgage Terms
Jeffrey de Souza, Head of Mortgages at Lomond, highlighted:
“High LTV ratios (up to 80% for first-time buyers) and steady demand prove that Dubai’s mortgage sector is accessible and competitive. Even with recent UAE Central Bank regulations on financing fees, buyer interest remains strong.”
Is Now the Right Time to Secure a Mortgage in Dubai?
With interest rates holding steady, fixed-rate mortgages offer buyers predictable payments. However, Betterhomes advises that global economic shifts could impact future lending conditions, making this an ideal time to explore financing options.
Key Takeaways for 2025:
✔ Mortgage transactions up 4.76% (Jan–Feb 2025)
✔ Total mortgage value jumps 32.14% (AED 14.35B in Feb)
✔ First-time buyers can access up to 80% financing
✔ Fixed-rate mortgages recommended amid stable rates
Dubai’s real estate market remains a top choice for investors and end-users, backed by strong mortgage growth and favourable lending policies.
