Cheaper Homes Coming? U.S. & UAE Rate Cuts and Dubai’s Mortgage Shift
Cheaper Homes Coming? U.S. & UAE Rate Cuts and Dubai’s Mortgage Shift Homeownership in the UAE may soon become noticeably more affordable. The U.S. Federal Reserve is widely expected to deliver a 25-basis-point rate cut, and the UAE Central Bank is set to mirror the move almost instantly. With the dirham pegged to the U.S. dollar, the UAE’s monetary policy shifts in lockstep with the Fed. Economists say the immediate effect will be cheaper mortgages across the Emirates — potentially reshaping the property market. What This Means for Buyers Who Stands to Gain Most Market Impact and Evidence Analysts expect demand to rise, especially in mid- and entry-level segments such as studios, one- and two-bedroom apartments, and townhouses. Developers are set to benefit, while banks may compete harder with lower fees and better mortgage packages. Still, cheaper mortgages usually fuel transaction growth rather than price drops — and if demand spikes, prices could climb further, offsetting some of the savings. Knight Frank data underscores the market’s resilience: Innovation and Market Response Mortgage financing has become one of the fastest-growing segments of Dubai’s property market. With borrowing costs falling and demand rising, banks are launching new products while PropTech solutions streamline the process. “And what we are seeing now is a real shift in how the industry operates,” says Andrey Sviridenko, CEO of Behomes. “Dubai was once thought of as a cash-driven market. Today, mortgages are increasingly accessible and attractive. Agents and brokers want tools that give them speed, transparency, and confidence — and that’s exactly what we provide.” According to Sviridenko, Behomes has built a professional platform tailored for real estate agents and brokers. It enables them to compare mortgage offers from 17 leading UAE banks in real time, use mortgage calculators to model repayment structures, and understand the true cost of borrowing beyond the headline rate. “It’s not just about the interest rate on paper,” he explains. “It’s about fees, loan terms, fixed versus variable rates — and how those factors affect clients over time. That’s where our technology makes the difference.” He adds that the company is developing a mobile app to make securing a mortgage faster and easier than ever, guiding users through required documents and simplifying every step of the process. “The next stage of innovation in the UAE mortgage space is about giving buyers speed, clarity, and confidence-making home financing as straightforward as possible.” The Bigger Picture The upcoming rate cut marks a pivotal moment. With strong population growth, rising rents, and robust investor interest already fueling the UAE real estate sector, lower interest rates could accelerate the shift from renting to owning. For many expats and residents, 2025 may finally be the year when buying a home in Dubai or Abu Dhabi makes more sense than renting. Originally published at Business News This Week