Dubai is one of the most appealing real estate destinations globally with high returns on rent, tax free capital gain and good property appreciation. It can be daunting to finance your property purchase in Dubai, whether you are planning to move to the UAE or invest as an expatriate, as there are a lot of rules, rates, and procedures involved.
The great news? Lately, there was a decline in property prices by 0.57% MoM to AED 1,484 per sq ft, the first decline since Summer 2022. This makes it a nice time to invest in Dubai property in 2025. Foreigners and expatriates may own property in Dubai and there are various ways to fund it. The trick is to select the financing option that best fits your financial condition, risk appetite and long term plans.
This guide will take you through all the financing options in 2025, whether it is through a mortgage, developer payment plan, hybrid solutions, and what you should know before you take a step.
How to Finance Your Dubai Property in 2025
Dubai off-plan and ready property markets are booming and prices have become competitive. Unless you are intending to fully pay in cash, it is important to know the financing environment. An intelligent financing plan may not only enable you to get your dream home or investment unit, but it can also enhance your returns, boost your purchasing power and relieve initial pressure.
1. Developer Payment Plans: Easy and Flexible
Developer-supported payment plans are the most convenient, and available financing option to many expats and investors, particularly in the off-plan market.
How They Work
Developers provide payment plans which divide the overall cost of your property into affordable payments e.g.:
- 10-20 percent at the time of booking
- 6070% in the course of construction (in phases or definite dates)
- 10-30 percent on handover (or post-handover in certain instances)
There is no involvement of a bank. There is no interest charged. Depending on the developer, payments may be associated with milestones in the project or fixed dates.
The reason it works
- No UAE credit history is required
- Many cases where income verification is not required
- Enhanced accessibility into the market without large initial capital
- No mortgage documents or pre-approval
Look Out For:
Always ensure you enquire whether the payment plan is milestone (e.g. payment upon completion of floors) or time-based (e.g. pay every 6 months regardless of progress). Milestone-based is more secure.
2. Can Expats get Mortgage Financing in Dubai? Yes
Contrary to popular opinion, mortgages can be offered to both residents and non-residents, and even to off-plan properties – the only condition is that the project has already passed a certain stage of construction.
Mortgage Basics for Expats (2025)
|
Category |
Residents |
Non-Residents |
|
Loan-to-Value (LTV) |
Up to 80% |
60-70% |
|
Interest Rates |
3.9-5.5% |
4.5-6% |
|
Loan Terms |
Up to 25 years |
Up to 20 years |
|
Minimum Property Value |
AED 500,000 – 1 Million |
Varies by bank |
|
When Funds Release |
50-60 Project Completion (For off-plan) |
At or near handover |
You will require a UAE bank account (in certain instances), together with other essential documents such as:
- Copy of passport and visa
- Income certificate (salary certificate or business income certificate)
- Bank statements (typically 3-6 months)
- Tax returns or employment letter
Fixed Rate Mortgages vs. Variable Rate Mortgages
- Fixed Rate: The rate remains constant over a specific period (3-10 years). Perfect to plan and consistency. The current rates are fixed as low as 2.21 percent in certain circumstances, with no processing fee.
- Variable Rate: Varies depending on market conditions. There is a chance that you will gain when rates decrease, but you can get charged more when they increase. There are those banks whose margins are as low as 1.45% above base rates.
Interest-Only Option
Other banks will allow an interest-only repayment term up to 5 years that is a temporary reprieve but you are not willing to begin paying off principal immediately.
3. Hybrid Financing: The Two Worlds
In 2025, more smart investors are mixing developer payment schemes with mortgages to reduce their capital load.
How It Works
- Pay the developer according to its plan to pay down payments and construction-stage installments
- Take out a mortgage near handover to finance the rest 20-40%
- Experience mortgage leverage without preliminary paperwork
This plan allows you to ease your financial burden and provides you with time to establish eligibility to a mortgage, particularly, when you are a new resident in the UAE or still in the process of consolidating your assets.
All you need to do is make sure the project is pre-approved by mortgage lenders, otherwise you might face last minute financing issues.
4. Cash Buyers: High Simplicity, High Leverage
In case you have the privilege to pay in cash upfront, you will enjoy:
- Full payment discounts by developers
- Quicker and convenient transactions
- No mortgage insurance or bank participation
- Stronger bargaining power
But you have to have cash purchases that tie up your liquidity. It is a drawback when you wish to diversify investments or remain financially nimble.
5. Don’t Forget The Hidden Costs
Regardless of how you fund it, there are required fees as well as optional fees that you need to budget:
Mandatory Costs
- 4% DLD Transfer Fee
- 2-3% Agency/administrative charges
- Oqood Registration (off-plan): AED 1,000 – 3,000
- Mortgage registration fee: 0.25 percent of the loan amount
- Bank fees: Valuation, processing, early settlement, etc
Optional, but common costs
- Mortgage Life Cover (Loan Protection Insurance): Banks may make this mandatory
- Property Insurance
- Service Charges (yearly, upon delivery)
Pro tip: Make sure to have a buffer of 6-8 percent of the property value to pay these extra expenses.
6. Is a Mortgage Broker a Good Idea?
Yes, most likely, particularly when you are new to the Dubai market.
A licensed mortgage broker is able to:
- Compare offers in different banks
- Assist you to fulfil eligibility requirements
- Accelerate your pre-approval process
- Save time in documenting and follow-ups
They do charge a fee, however, they can usually get you better rates or special approvals, e.g. bank coverage of DLD fees (4%) and agency commissions (2%) on qualified profiles.
7. Procedural Guide to Raising Capital
This is the way a regular expat or foreign investor obtains a mortgage on a property in Dubai:
- Select a financing path: Developer plan, mortgage, hybrid, or cash.
- Become pre-approved: This is especially crucial when you are pursuing the mortgage path.
- Locate your home: Remain within your budget as pre-approved.
- Sign Sales Purchase Agreement (SPA): Pay booking amount or down payment.
- Complete funding: File documents and pass bank/property checks.
- Close the deal: Payments handover, DLD registration, and final documents.
8. Believe the developer (And do your homework)
It does not make sense to finance something unless the project is delivered on time and as promised. Before you engage yourself:
- Look at the record of the developer
- Seek previous delays or complaints in handover
- Check that the project is mortgage-able
- Enquire whether the payment plan is registered at RERA (Dubai Real Estate Regulatory Authority)
The best developers such as DAMAC and Roots Heritage are getting momentum because they are providing transparency, on-time delivery and design quality that is in line with the expectations in the market.
Final Thoughts
Financing property in Dubai has no general solution. As an expat buyer seeking your dream family home or an investor with good rental returns in mind, the best financing plan is the one that:
- Fits your long-term objectives
- Suits your level of cash flow comfort
- Reduces your risk
- Maximizes your profits
The real estate market of Dubai in 2025 is designed to accommodate both residents and international investors. Owning a property in Dubai is neither impossible nor impractical with proper planning and perhaps the right combination of developer contributions and bank financing.