Federal Reserve Interest Rate Cuts Unlock Greater Affordability For Dubai Property
Thursday 18th September, Dubai UAE - The US Federal Reserve has announced its first interest rate cut since December, with two further reductions anticipated later this year. Following this decision, the UAE Central Bank, aligning its policy with the US dollar, has also reduced its base rate by 25 basis points, bringing it down from 4.40% to 4.15%.
This decrease in interest rates is expected to be a significant boost for the Dubai property market, improving affordability for buyers and lowering monthly mortgage repayments. This creates a prime opportunity for both seasoned investors and first-time homebuyers to enter the market.
“This is great news for anyone looking to buy property in the Dubai real estate market,” said Michael Melim, Head of Mortgages at Allsopp & Allsopp. “More favourable borrowing conditions will support affordability, encourage more people to invest, and continue to drive momentum in the market.”
For those holding variable rate mortgages, repayments can be expected to decrease in line with the cut, as rates are directly linked to the central bank or lender’s base rate.
If you are interested in buying a property in Dubai, now is the perfect time. With the lowered interest rates, you’ll be able to get more for your money when securing a mortgage from the bank.
The Dubai property market has already experienced a record-breaking year of growth, fuelled by strong demand, attractive returns, and a steady stream of international buyers. The recent rate cut is set to further add to the city’s appeal, with momentum expected to continue, further strengthening Dubai’s position as a global leader for real estate investment.
With additional rate cuts anticipated later this year, the forecast for the Dubai real estate market remains exceptionally strong, promising increased accessibility, continued investor confidence, and rising global interest.
For support with your existing mortgage or interest in a new one please reach out to our mortgage team now!
For media enquiries, please contact:
Emily Bates, PR & Communications Manager +971 58 598 6637