The growing population in the UAE is driving changes in the property market, particularly in the demand for mortgages. With an influx of young professionals seeking opportunities and long-term settlement, mortgage demand is rising alongside property prices. Escalating rental costs are also prompting tenants to consider property ownership, leading many to opt for mortgages. In fact, data from Mortgage Finder reveals a 24% increase in mortgage volume and a 22% rise in value between January and August 2023, with mortgage transactions accounting for 38% of property transactions during this period.

While mortgage rates have increased over the past two years due to interest rate hikes by the Central Bank of the UAE and the US Federal Reserve, they currently range from 4.24% to 4.99% for most local banks. However, determining the best mortgage option involves more than just rates. Various fees and individual circumstances can impact the overall cost of a mortgage. Therefore, it’s advisable to consult a mortgage advisor who can assess your unique needs and guide you toward the most suitable mortgage product.

The market remains robust, with an increasing number of inquiries received by Mortgage Finder, indicating sustained momentum. As the UAE’s economy continues to expand, driven in part by a growing expatriate population, more individuals are expected to turn to mortgages for property purchases. Deciding between cash and mortgage depends on individual circumstances. While some prefer not to tie up their savings entirely in a property and find mortgages beneficial, others opt for cash to avoid paying interest. To make an informed decision, it’s essential to seek guidance from a mortgage advisor who can help tailor the choice to your specific needs. Furthermore, with expectations of the US Federal Reserve lowering interest rates in the coming year, variable-rate mortgages may become more attractive, potentially leading to lower mortgage rates in the UAE.