If you’re looking to buy property in Dubai, you may be wondering if it’s possible to get a loan to finance your purchase. The good news is that yes, it is possible to get a loan in Dubai to buy property.
The real estate market in Dubai has seen a surge in the number of people taking out mortgages in recent years. The Dubai real estate market has been growing steadily over the past few years, with developers launching new projects and the government introducing policies to attract foreign investment.
According to data published by CBRE, Dubai’s average residential prices increased by 19.1% in the year to October 2023, marginally down from the 19.6% rate of growth registered a month earlier. Over the same period, average apartment and villa prices rose by 18.7% and 21.4%, respectively. A total of 93,590 residential transactions were recorded, surpassing the 2022 full-year total of 92,178, which was the highest total ever recorded in the year Oct 2023.
Getting a loan to buy property in Dubai is similar to getting a mortgage in other countries. The main difference is that most lenders in Dubai require a larger down payment, typically 25% or more of the property’s value. The interest rates on mortgages in Dubai are also higher than in some other countries, with rates ranging from 3% to 5%. One thing to keep in mind when applying for a mortgage in Dubai is that the process can be more complex than in other countries. You’ll need to provide a lot of documentation, including proof of income, bank statements, and a copy of the property’s purchase agreement. It’s also important to work with a reputable lender or mortgage consultancy, that understands the Dubai real estate market and can guide you through the process. Despite the challenges, taking out a mortgage to buy property in Dubai can be a smart financial move. Property prices in Dubai have been steadily increasing over the past few years, and investing in real estate can be a good way to build wealth over the long term.
In addition, Dubai is a popular destination for expats and investors, which means that there is always demand for rental properties. In conclusion, it is possible to get a loan in Dubai to buy property, and the real estate market in Dubai is thriving. Investing in Dubai’s real estate can be a smart long-term financial move as property prices continue to rise.
Connect with 4C Mortgage Consultancy certified mortgage brokers in Dubai and Abu Dhabi and let them help you plan your investment in Dubai, UAE. 4C Mortgage Consultants provides the best mortgage consultancy for a resale property, new purchase property, mortgage refinance, off-plan purchase, construction mortgage, project finance, commercial mortgage, buyout, equity release, and non-UAE resident mortgage in Dubai.
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