Dubai's mortgage market hit a 14-month high in May 2024, the second-highest mortgage month ever recorded, according to data from the Dubai Land Department. Low interest rates and an influx of over 30,000 new expatriates actively searching for homes to buy were the primary drivers behind the activity surge.
Finance Buyers Overtake Cash Buyers
According to Allsopp & Allsopp, mortgage rates in May reached a three-year high in volume — but not in cost. Finance buyers topped cash buyers at a 55.8% ratio, doubling the figure recorded in April.
Connor Humble, Mortgage Services Manager at Allsopp & Allsopp, said: "I think now is the perfect chance for buyers to look for a home mortgage at the current low rates. Some may say that some of the banks have increased their rates slightly — true — nonetheless, others are still yet to do it, meaning that these friendly rates will be around for a while longer, and we are foreseeing more mortgages in the next few months."
Top Areas for Dubai Mortgage Activity
The highest apartment mortgage activity was concentrated in Downtown Dubai, Jumeirah Village Circle (JVC), Dubai Marina, Jumeirah Lake Towers (JLT), and Jumeirah Beach Residence (JBR).
For villas, the most preferred communities were The Springs, Arabian Ranches, Town Square, Al Furjan, and Reem.
Price Bands Driving the Market
Properties in the AED 1–3 million range captured the largest share — 56% of all financed sales. The AED 3–5 million bracket ranked second, comprising 25% of transactions.
Independent Mortgage Advisors Play a Growing Role
Lewis Allsopp, Chairman of Allsopp & Allsopp, pointed to growing mortgage literacy as a key factor driving the surge. "It has become a trend for people to seek the services of independent mortgage advisors before approaching their banks to be told about their chances fully," he said.
"If buyers only engage one bank, they cannot be offered the best terms. They are guided across multiple banks and negotiated for the best terms — ranging from free valuations to better interest rates."
Allsopp also noted that mortgage advisors help buyers identify the right communities based on handover rates, giving buyers a clearer picture of their options before committing.
Outlook Remains Positive
With conditions remaining favourable, Dubai's mortgage market is expected to maintain its growth trajectory — continuing to underpin the emirate's already strong real estate sector through the second half of 2024.
