Price Trends
Quality of Life and the Value of a Home
January 17, 2026
The new year begins with two important changes in force. The UAE Central Bank has introduced limits on how much banks can lend against property, and the Dubai Land Department has raised the transfer registration fee from 2% to 4%. Both measures are designed to keep the market's growth sustainable after a year of rapid price rises and the excitement that followed Dubai's Expo 2020 win.
The main changes
- Loan-to-value caps: lower maximum loans for expatriates than in the past, with stricter limits on higher-value homes.
- Second homes and investment: tighter limits for buyers who already own property.
- Off-plan: more restrictive lending for homes not yet completed.
- Registration fee: doubled to 4% of the purchase price.
Who is most affected
Investors relying on borrowing and buyers planning to resell quickly feel the greatest impact. A higher registration fee makes short-term trading less profitable, and lower loan limits require larger deposits.
Who is less affected
Cash buyers and end users who buy to live in their homes are less affected. For them, the measures may even be positive, by reducing speculative competition.
Effects on the market
We expect transaction volumes to moderate and price growth to slow. That is the intention: a steadier market is less likely to experience another sharp correction.
Practical advice
- Budget for the full 4% fee and other purchase costs.
- Check your borrowing capacity under the new rules before committing.
- Plan to hold property for several years to absorb transaction costs.
A worked example of the new costs
Consider an expatriate buying a first home for two million dirhams with a mortgage. Under the new lending limits, the buyer needs a larger deposit than many were used to, plus the 4% transfer fee of eighty thousand dirhams, agency fees and mortgage registration costs. Altogether, the cash required at purchase can easily exceed six hundred thousand dirhams. For an investor buying a second property, the deposit requirement is higher still. These figures show why the measures discourage quick trading: an investor would need prices to rise substantially just to recover the costs of buying and selling. For long-term owners, the costs are spread over many years and matter far less.
Our view
These measures are a sensible response to rapid price growth. They favour long-term buyers and reduce the risks of speculation. We help clients plan purchases within the new framework.
