The Backbone of Dubai’s Market Stability
Why Mortgages Are Supporting Dubai Real Estate (Not Inflating It)
One of the strongest signals of market health in Dubai right now is mortgage penetration.
Contrary to popular belief, this is not a highly leveraged market and that’s a good thing.
Mortgage Market Snapshot
- 51,075 mortgage transactions in 2025
- +23% year-on-year
- +111% vs 10-year average
- 86.1% residential
- 13.9% commercial
What Buyers Are Doing
Breakdown of residential mortgages:
- 53.9% new purchases
- 31.2% refinances / equity releases
- 14.9% bulk mortgages
This shows:
- End-users entering the market
- Existing owners restructuring sensibly
- Low speculative leverage
Lending Metrics (Healthy by Global Standards)
- Average LTV: 74.4%
- Average mortgage size: AED 1.85M
- Average purchase price: AED 2.49M
LTVs actually fell slightly due to stricter enforcement of banking fees — a sign of risk control, not stress.
Why This Matters
Markets crash when:
- Credit is loose
- Leverage is excessive
- Refinancing hides distress
Dubai shows the opposite:
- Controlled lending
- Real equity
- Rising owner-occupier participation
Mortgages aren’t inflating the market — they’re stabilising it.