Report
Residential Mortgage
2025
Residential Mortgage Report
UAE Mortgage Market Snapshot (Full Year 2025)
| METRIC | Value |
|---|---|
| Total Property Transactions | 209600 |
| Total Property Transactions Value | AED 553.4Bn |
| Mortgage – backed Transactions | 24069 |
| Total Mortgage Value | AED 43.96Bn |
| Mortgage – Share of Property Sales | 7.9% |
| Ready Property Market Value | AED 137.7Bn |
| Mortgage Penetration – Ready Market (by Value) | 31.9% |
Untapped Financing Opportunity
Mortgaged Supply of 2025
| Category | METRIC | Value |
|---|---|---|
| Supply & Absorption | Total Units Supplied | 44457 |
| Units Sold | 32519 Units | |
| Absorption Rate (Sold vs Supplied) | 73.2% | |
| Transactions Activity | Total Transaction | 45488 |
| Market Value | Total Transaction Value | AED 70.78Bn |
| Mortgage Activity | Mortgage Cases | 3079 |
| Total Mortgage Finance Value | AED 6.10Bn | |
| Mortgage Penetration (by Value) | 8.6% |
Most homes sold without mortgages.
Even though 73% of new residential supply was sold, only 8.6% of the value used mortgages. Most buyers paid in cash or equity.
Mortgages are not driving residential sales.
32,519 homes sold, but only 3,079 mortgage cases — financing supported a small group of buyers, not the market as a whole.
Residential resales are active but mostly cash-based.
45,488 transactions on supplied homes shows strong buying and selling, but very limited borrowing.
There is room for residential mortgage growth.
The gap between how many homes sold and how few were financed shows opportunity for mortgages, not risk in the system.
Mortgage Market Scale and Evolution Year on Year
Overall Mortgage Market Overview (2021-2025)
| METRIC | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Total Transactions | 56513 | 92365 | 126129 | 174710 | 209600 |
| Total Transactions Value (AED bn) | 126.9 | 223.3 | 328.4 | 436.4 | 553.4 |
| Total Mortgage Transactions | 7014 | 9311 | 13285 | 20216 | 24069 |
| Total Mortgage Value (AED bn) | 12.2 | 16.7 | 23.1 | 36.2 | 43.9 |
| % of All Property Sales ( by value ) | 9.6% | 7.5% | 7.0% | 8.3% | 7.9% |
UAE Mortgage Market Value Trend (AED BN)
Key Insights:
Mortgage split by property type
Mortgage Split by Property Type (Value Basis)
| PROPERTY TYPE | TOTAL VALUE (AED BN) | MORTGAGE VALUE (AED BN) | MORTGAGE SHARE (%) |
|---|---|---|---|
| Apartments | 332.4Bn | 20.4Bn | 6% |
| Serviced / Hotel Apartments | 6.9Bn | 0.4Bn | 6% |
| Villas | 212.0Bn | 23.0Bn | 11% |
| Villa Plots | 2.2Bn | 0.1Bn | 5% |
Value
Apartments
Serviced / Hotel Apartments
Villas
Villa Plots
Key Insights:
Price Based Segmentation
Mortgage Value Segmentation by Price Band (2025)
| SEGMENT | PRICE BAND (AED) | MORTGAGE VALUE (AED BN) | MARKET ROLE |
|---|---|---|---|
| Affordable | < 1 Mn | 3.7Bn | Entry-level, Affordability-led borrowing |
| Mid-Market | 1 - 2 Mn | 8.2Bn | Core end-user financing |
| Upper Mid-Market | 2 - 5 Mn | 19.2Bn | Primary mortgage demand engine |
| Luxury | 5 - 12 Mn | 7.9Bn | Selective, confidence-driven leverage |
| Ultra-Luxury (Emerging) | 12 - 20 Mn | 2.0Bn | Wealth-led, Limited leverage |
| Ultra-Luxury (High-End) | 20 - 50 Mn | 2.3Bn | Capital optimisation plays |
| Ultra-Prime | > 50 Mn | 0.7Bn | Trophy assets, minimal financing |
Key Insights:
Mortgage demand is concentrated in the AED 2–5 Mn band.
Mortgage usage peaks before luxury pricing begins.
Affordable and Mid-Market segments are stable but capped.
Ultra-Luxury operates largely outside the mortgage system.
Key Inferences & Conclusions
The mortgage market has expanded in scale, but penetration remains structurally constrained
Mortgage growth has been driven by market momentum, not deeper financing integration
Mortgage usage is structurally concentrated within eligible market segments
The AED 2–5 Mn segment remains the core engine of mortgage demand
Mortgage adoption declines sharply beyond functional leverage thresholds
Apartments represent the single largest untapped financing opportunity
Villas drive mortgage depth, not transaction dominance
Sources: Public government data (Dubai Pulse) & Licensed market data (REIDIN)
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