How to buy an apartment in Dubai on credit

The UAE real estate market is rapidly recovering after the pandemic. Analytical companies and real estate agencies in Dubai note the increased sales growth, which has achieved the highest results, last observed in 2014. According to experts, a similar situation will continue next year: real estate prices in Dubai will slowly but surely grow. Therefore, those studying the prospects of investing in Arab real estate should not delay the decision to buy. Even with a limited budget, you can always buy a home with a mortgage. Let’s take a closer look at the requirements for foreign nationals buying foreign real estate on credit.

What does a foreigner’s mortgage look like for buying an apartment in Dubai

There are more than 60 freehold zones in the emirate where citizens of other states can purchase real estate by law with a garden filled with their favorite flowers. The list is gradually being expanded as the UAE is interested in attracting foreign capital. This makes it possible to choose the best option of the housing stock both in the central part of Dubai and in the suburbs or resort area. Mortgage lending is available, but the amount of credit is directly related to citizenship. While residents may receive up to 85% of the cost of the housing, the maximum threshold for residents is 80%. For non-residents, the amount is reduced and fixed by the bank, varying between 50 and 70%.

What are the bank requirements for those who want to buy an apartment on credit for investment or relocation

They are common to many countries of the world:

  • Being at least 21 years old. The upper limit must not exceed 65 years (the retirement age in the UAE).
  • Proving creditworthiness. It is calculated according to the scheme of the Central Bank of the UAE: after paying the monthly loan amount, the borrower must have at least $950 left for each family member.
  • Having a good credit reputation. If it is damaged or missing, you will most likely be denied a mortgage.

The average cost of rented properties exceeds 6% and can reach 10%, depending on the area. This is a profitable mortgage purchase, because the investments, even those paid to the bank, not only pay off but also make a small profit. For more information on the real estate market, mortgage conditions, and sales offers, please contact the official source AX Capital.

Mortgage rates for foreigners

It depends on the banking institution, so you can use the services of licensed agencies that will help you choose the most favorable offers with or without any major repairs or replacements. On average, the rate varies from 4.5 to 5.5%. The figures are lower for residents. It is also worth studying the contract section with the type of rate. In addition to the traditional fixed rate, it can be floating (depending on the rate of the Central Bank of the UAE) or decreasing. Real estate agency brokers will help you choose the best option for each purchase.

Kimberly Tran

Kimberly Tran brings a wealth of knowledge from her 15 years in architecture and urban planning. She graduated from the University of Southern California with a Master's in Urban Planning. She began her career in a top architectural firm before transitioning to property development. Joining our team in 2020, she has since been a driving force in exploring innovative living spaces. Kimberly balances her professional life with a passion for landscape photography and volunteering in community redevelopment programs.

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