From February 1, 2025, property buyers in the UAE who take a mortgage will have to pay extra upfront. Banks will no longer cover the Dubai Land Department (DLD) fee and the broker’s commission. This change will affect buyers, making off-plan properties a more attractive option.
What’s Changing?
Before, banks included the 4% DLD fee and 2% broker’s fee in the mortgage, reducing the initial payment for buyers. Now, buyers must pay these fees themselves, adding 6% to their upfront costs.
How Will This Affect Buyers?
With more money needed upfront, many buyers may choose off-plan properties instead of resale homes. Developers offering long payment plans will become more popular. Experts believe:
More people will buy off-plan properties.
Resale home sales might slow down due to higher costs.
Developers may offer better payment plans to attract buyers.
What Can Buyers Do?
If you plan to buy a property with a mortgage, it’s important to check your budget and explore different payment plans. Looking for properties with flexible payment terms can help reduce the financial burden. Real estate experts can also provide guidance on making the best choice.
While this change means buyers need to plan better financially, it also creates opportunities in the off-plan market with lower initial costs and structured payments.
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