The UAE’s real estate market is on fire, with transactions across five emirates—Abu Dhabi, Dubai, Sharjah, Ajman, and Ras Al Khaimah—hitting an astonishing AED239 billion in the first quarter of 2025, according to the Emirates News Agency (WAM) on May 24, 2025. Driven by over 94,719 sales, purchase, and mortgage deals, this surge reflects robust investor confidence, flexible regulations, and a growing pipeline of world-class developments.
For homebuyers and investors, this booming market presents a golden opportunity to secure a mortgage and invest in the UAE’s thriving property sector. As your trusted mortgage broker, we’re here to guide you through the financing process and help you find the perfect mortgage solution to make your real estate dreams a reality.
A Thriving Real Estate Market Fueled by Mortgage Activity
The UAE’s real estate sector has started 2025 with unparalleled momentum, recording a diverse range of transactions, including sales, purchases, mortgages, grants, and property exchanges.
Official data highlights the pivotal role of mortgage transactions in this growth, with significant volumes in Dubai, Abu Dhabi, and beyond. Talal Al Dhiyebi, Group Chief Executive Officer at Aldar Properties, attributes this boom to the UAE’s economic and cultural progress, which continues to position the country as a top destination for living, working, and investing. Aldar alone reported AED8.9 billion in Q1 sales—a 42% year-on-year increase—with portfolio occupancy rates exceeding 95%, signaling strong demand across residential and commercial properties.
For prospective buyers, the rise in mortgage transactions offers a clear path to homeownership and investment. Whether you’re a first-time buyer, an investor seeking rental income, or a business owner looking for commercial space, securing the right mortgage is key to capitalizing on this dynamic market. Our mortgage brokerage team specializes in finding tailored financing solutions to help you navigate the UAE’s competitive real estate landscape.
Dubai: A Mortgage Hotspot in the UAE’s Largest Market
Dubai remains the cornerstone of the UAE’s real estate market, contributing AED193 billion to the Q1 2025 total through 58,039 transactions—a 16.2% increase in value and a 31.5% rise in volume compared to Q1 2024. The Dubai Land Department reported that mortgage transactions accounted for AED41 billion across 10,949 deals, reflecting a 27% increase in volume. This significant mortgage activity underscores Dubai’s appeal as a global hub for real estate investment, driven by its luxurious developments, strategic location, and investor-friendly policies.
For those looking to buy in Dubai, whether it’s a high-rise apartment in Downtown Dubai, a beachfront villa in Palm Jumeirah, or a commercial property in Business Bay, a mortgage can make your purchase more accessible. Our brokerage services can connect you with lenders offering competitive interest rates, flexible repayment terms, and high loan-to-value ratios. We’ll guide you through the mortgage application process, ensuring you secure financing that aligns with your financial goals.
Abu Dhabi: Mortgage Opportunities in a Growing Capital
Abu Dhabi is rapidly gaining traction as a real estate powerhouse, with AED25.3 billion in transactions in Q1 2025, a 34.5% increase from Q1 2024. The Abu Dhabi Real Estate Centre reported 3,077 mortgage transactions worth AED9.8 billion, a 49% year-on-year surge, highlighting the capital’s growing appeal.
Mortgages in Abu Dhabi are particularly attractive for expatriates and residents, with banks offering up to 80-85% loan-to-value ratios for UAE nationals and 75-80% for non-residents, depending on the lender and property type. Fixed and variable rate options are available, with terms extending up to 25 years, making homeownership more achievable.
Our mortgage brokers can help you compare offers, assess eligibility, and navigate documentation requirements to secure the best mortgage for your Abu Dhabi property purchase.
Sharjah, Ajman, and Ras Al Khaimah: Affordable Mortgage Options
The emirates of Sharjah, Ajman, and Ras Al Khaimah are emerging as high-potential markets for mortgage seekers, offering affordable properties with strong investment returns. Sharjah recorded AED13.2 billion in transactions across 24,597 deals, a 31.9% increase from Q1 2024.
Ajman saw AED5.55 billion in transactions, including AED905 million from 498 mortgage deals, up 29% year-on-year. Ras Al Khaimah’s residential off-plan sales exceeded AED2.4 billion from over 1,300 transactions, according to CBRE, reflecting growing demand in the northern emirate.
These emirates are ideal for first-time buyers and investors looking for cost-effective properties with competitive mortgage options. Lenders in these markets often provide favorable terms, including lower down payments and extended repayment periods, to attract buyers. Our team can assist you in exploring mortgage products tailored to these emirates, whether you’re purchasing a family home in Sharjah’s Al Zahia or an off-plan property in Ras Al Khaimah’s growing communities.
Understanding Mortgage Options in the UAE
The UAE’s mortgage market is diverse, offering a range of products to suit different needs. Here’s a quick overview to help you understand your options:
- Fixed-Rate Mortgages: Ideal for those seeking predictable monthly payments, fixed-rate mortgages lock in your interest rate for a set period (typically 1-5 years). This is perfect for budgeting in a rising interest rate environment.
- Variable-Rate Mortgages: These offer lower initial rates tied to the Emirates Interbank Offered Rate (EIBOR), but payments may fluctuate with market conditions. They suit buyers comfortable with some risk for potential savings.
- Loan-to-Value (LTV) Ratios: UAE nationals can access up to 85% LTV for properties under AED5 million, while expatriates typically qualify for up to 80%. Higher LTVs may be available for off-plan properties. Use our LTV Calculator tool here
- Repayment Terms: Mortgages in the UAE can extend up to 25 years, with longer terms reducing monthly payments but increasing total interest paid.
- Islamic Mortgages: Sharia-compliant financing options, such as Ijara or Murabaha, are widely available for those seeking interest-free alternatives.
As mortgage brokers, we work with leading UAE banks and financial institutions to secure the best rates and terms for you. We also assist with pre-approvals, which can strengthen your position when negotiating property purchases in this competitive market.
Why Now Is the Time to Secure a Mortgage
The AED239 billion in Q1 2025 transactions signals a robust and growing real estate market, making it an ideal time to invest. With mortgage activity on the rise, banks are offering competitive products to attract buyers, and flexible regulations are making financing more accessible. However, navigating the mortgage landscape can be complex, especially with varying lender requirements and market conditions.
At capital zone mortgage, we simplify the process by providing expert guidance and personalized solutions. Whether you’re buying in Dubai’s luxury market, Abu Dhabi’s premium developments, or the affordable markets of Sharjah, Ajman, or Ras Al Khaimah, we’ll help you find a mortgage that fits your budget and goals. From pre-approval to final disbursement, our team is with you every step of the way.
Ready to seize this opportunity? Contact us today for a free mortgage consultation and start your journey to owning a property in the UAE’s booming real estate market!
Disclaimer: Mortgage rates and terms are subject to change based on lender policies and market conditions. Always consult a financial advisor for personalized advice.
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