Current mortgage rates, average prices by area, and what the Central Bank rate decision means for buyers in the second half of 2026.
Current mortgage rates in Dubai
As of Q2 2026, variable mortgage rates from major UAE banks range from 4.25 to 5.50 percent per annum. Fixed rate products for 1 to 5 years are available from 3.99 to 4.75 percent. Rates have stabilised after the 2023 to 2024 cycle.
How the Central Bank rate affects you
The UAE dirham is pegged to the US dollar, so UAE rates closely follow US Federal Reserve decisions. Variable rate mortgages reset periodically — usually every 3 or 6 months — so existing borrowers benefit directly from Central Bank cuts.
Average prices by area
Average apartment price per square foot in Q2 2026: Downtown Dubai AED 2,800 to 3,500. Dubai Marina AED 1,900 to 2,400. Business Bay AED 1,600 to 2,100. JVC AED 900 to 1,200. Dubai Hills AED 1,800 to 2,300. Sobha Hartland AED 2,000 to 2,600. Palm Jumeirah AED 3,500+.
Fixed vs variable right now?
With rates expected to trend downward in late 2026, variable rates look attractive for buyers who can absorb short-term fluctuation. Fixed rates provide certainty — important for buyers with tighter affordability margins.
Is now a good time to buy?
From a financing perspective, yes. Banks are actively lending, LTV limits are unchanged, and competition between lenders has kept spreads tight. Waiting for rate cuts carries risk — property prices are unlikely to wait.
What this means for your budget
At current rates, a AED 1.5 million mortgage over 25 years costs approximately AED 8,100 to 8,800 per month. A 0.5 percent rate improvement saves approximately AED 350 per month.
Get a personalised rate assessment
Market rates are indicative. Your actual rate depends on your profile, lender, loan size, and current bank promotions. Book a call and we will give you real current offers for your specific profile.
