UAE interest rates fell by 0.5% in September, the first decrease in over four years encouraging more property buyers in Dubai to opt for mortgages instead of cash. It is said that over 60% of buyers in Q3 2024 chose mortgages, marking an 8% increase from last year.

This shift is driven by competitive interest rates in Dubai compared to other global cities making borrowing more affordable. The drop in rates has led to a surge in inquiries from tenants looking to buy with 67% expressing interest in home ownership within three years.

The UAE Central Bank's recent rate cut to 4.90% means lower costs for mortgages and personal loans, boosting economic activity. Analysts predict further rate reductions from the US Federal Reserve which could enhance buyer purchasing power and stimulate the market.

As mortgage rates ease, the demand for ready properties is expected to rise provided sellers price competitively.