All Dubai property buyers obtaining mortgages after February 1, 2025 will need to submit an initial 6% payment in compliance with new Central Bank of the UAE regulations. The Central Bank rules now require property buyers to pay upfront fees for both the 4% Dubai Land Department (DLD) registration costs and the 2% brokerage fees.
At present these fees could be funded through mortgages yet prospective buyers must now meet these costs independently. When purchasing a property costing Dhs 1,000,000 buyers need to allocate Dhs 60,000 extra aside from their initial payment. Clients need to provide equity payments of 20% when purchasing real estate less than Dhs 5,000,000 but must fund 30% to acquire properties above Dhs 5,000,000.
The market transition will benefit off-plan real estate development because developers can provide better payment flexibility along with decreased initial investment requirements. Some real estate developers provide assistance with Day to Day payment obligations through waivers that either decrease or eliminate these expenses.
The primary adjustment will first impact secondary market buyers who will need to look at different options for their investments. Developers have enacted this price alteration to both challenge investors but simultaneously support a shift toward adaptable property ownership structures. Homebuyers must reserve funds to cover rising costs because the regulations will introduce new expenses.
