The Central Bank of the UAE (CBUAE) has decided to cut its base rate from 5.4 per cent to 4.9 per cent, a reduction of 50 basis points. The decision follows changes in monetary policy by the US Federal Reserve (Fed), which also lowered its key rate on 18 September 2024.
For those considering investing in flats in Dubai and the UAE, the rate cut will bring many benefits:
Mortgage affordability: mortgage rates are expected to fall, making property purchases more affordable for investors. Mortgage approval rates and loan amounts may increase.
Refinancing of existing loans: owners of existing loans will be able to improve their conditions, which contributes to the revitalisation of the property market.
Attractiveness of property investment: the reduced rate will stimulate demand for residential property, especially in major cities such as Dubai.
The UAE's economic growth in 2025 is forecast at 4.8%, with the oil sector growing at 4.6%. Tourist traffic will increase by 20%, which will create additional prospects for active development of the hotel and residential sector.
