Peter Homes has affirmed that Dubai's mortgage market maintained its resilience throughout 2026 despite a period of regional geopolitical tensions, supported by competitive interest rates and stable mortgage financing frameworks, as banks continued to provide financing to buyers and investors without material changes to loan-to-value (LTV) ratios.
The company explained that the market has seen growing demand for mortgage financing since the start of the year, with an increasing trend towards fixed-rate loans starting from 3.75% per annum. Banks have become more focused on borrower quality, employment profile, and financial standing, rather than tightening lending across the board.
It added that fixed-rate products have become the preferred choice for the majority of buyers, as they offer greater certainty over monthly costs and their current levels are lower than many variable-rate alternatives, providing borrowers with tangible savings and protecting them from any future interest rate fluctuations.
Peter Homes noted that UAE banks continue to maintain stable financing levels, with some buyers able to obtain financing of up to 80% of a property's value depending on the nature of the property, the client's profile, and the bank's policies.
The company pointed out that the stability of Dubai's real estate market and its clear regulatory environment are bolstering buyer and investor confidence and supporting continued demand for mortgage financing in the period ahead.