Best Mortgage Options
in Dubai vs. Abu Dhabi
The UAE has long been a dream destination for property buyers. From Dubai’s glittering skyline to Abu Dhabi’s serene waterfronts, each city offers unique opportunities. But when it comes to mortgages, the differences between Dubai and Abu Dhabi can influence your decision significantly.
In this blog, we’ll break down the rules, rates, fees, and buyer profiles in each city. By the end, you’ll know exactly which mortgage option aligns with your financial goals — whether you’re an investor chasing returns or a family seeking stability.
Quick Snapshot: Dubai vs. Abu Dhabi Mortgages (At a Glance)
| Factor | Dubai | Abu Dhabi |
| Loan-to-Value (LTV) Ratio | Up to 80% for expats (first property under AED 5M) | Similar to Dubai, with minor bank-specific variations |
| Maximum Tenure | 25 years (till age 65 salaried / 70 self-employed) | 25 years (same conditions apply) |
| Down Payment | 20%–25% for expats | 20%–25% for expats |
| Average Mortgage Rates (2025) | 4.25%–5.75% | 4.10%–5.60% |
| Popular Buyer Type | Investors (apartments, off-plan projects) | Families (villas, townhouses) |
| Regulatory Oversight | Dubai Land Department (DLD) | Department of Municipalities & Transport (DMT) |
| Extra Costs | 4% DLD registration fee + admin charges | 2%–3% DMT fee + admin charges |
Mortgage Rules in Dubai
Dubai remains the global hub for real estate investors in the UAE. Its mortgage framework is designed to balance investor inflows with regulatory stability.
- Down Payment: Expats must contribute 20%–25% for properties under AED 5 million.
- Interest Rates: Current rates range from 4.25%–5.75%, with fixed, variable, and hybrid options.
- Typical Buyer Profile: Investors dominate Dubai’s market, attracted apartments, luxury towers, and off-plan projects.
- Fees: Expect a 4% DLD fee, mortgage registration costs, and processing fees.
Best suited for: Investors seeking short- to mid-term returns and higher rental yields.
Mortgage Rules in Abu Dhabi
Abu Dhabi’s real estate scene is more residential and family-oriented, with regulations mirroring Dubai but with lower upfront costs.
- Down Payment: Similar to Dubai at 20%–25% for expats.
- Interest Rates: Marginally lower, averaging 4.10%–5.60%.
- Typical Buyer Profile: End-users and families dominate, preferring villas, townhouses, and community living.
- Fees: Abu Dhabi charges 2%–3% DMT fees, making it slightly more affordable upfront.
Best suited for: Long-term residents prioritizing stability and family-friendly communities.
Which City Fits You Best?
- Choose Dubai if:
- You want higher rental yields (5%–7%).
- You prefer international liquidity and fast-moving property resale.
- You’re targeting off-plan investments or apartment rentals.
- You want higher rental yields (5%–7%).
- Choose Abu Dhabi if:
- You plan to live long-term in the UAE.
- You want slightly lower fees and a less speculative market.
- You’re looking for family-centric communities with villas and townhouses.
- You plan to live long-term in the UAE.
People Also Ask (FAQ Targets)
1. Is it cheaper to buy property in Abu Dhabi than Dubai?
Yes. Abu Dhabi generally offers lower upfront fees (2%–3%) compared to Dubai’s 4% DLD fee, and mortgage rates are slightly lower on average.
2. Can expats get the same mortgage terms in Dubai and Abu Dhabi?
Mostly yes. Both cities follow UAE Central Bank regulations, though fees and property types differ slightly.
3. Which city offers better rental yields — Dubai or Abu Dhabi?
Dubai. Rental yields in Dubai average 5%–7%, compared to Abu Dhabi’s 4%–6%, thanks to stronger investor demand.
Final Thoughts
Both cities offer world-class property markets, but the right mortgage depends on your goals. If you’re chasing investment returns, Dubai is your playground. If you’re seeking a long-term home with lower upfront fees, Abu Dhabi may be your best bet.
At Ricadi Mortgages, we simplify this decision comparing banks, rates, and regulations on your behalf. Whether it’s Dubai’s bustling towers or Abu Dhabi’s calm villa communities, we help you secure the perfect mortgage.
Call us at +971-56-364-6906 | www.ricadimortgages.com
