Cash buyers are taking a larger share of Dubai home purchases as borrowing costs come under renewed pressure, according to figures from property brokerage Betterhomes reported by Khaleej Times.

Cash purchases accounted for 44 per cent of the brokerage's residential sales in the third quarter of 2026, up from 36 per cent in the second quarter. Mortgage-backed deals fell to 56 per cent from 64 per cent, although that share remained above the 50 per cent recorded in the first quarter.

The shift followed the Central Bank of the UAE's decision to raise its Base Rate from 3.65 per cent to 3.90 per cent, effective September 17. Industry executives say UAE banks are likely to raise the rates they use to assess mortgage eligibility, which could reduce the amount buyers are able to borrow.

Betterhomes said the growing share of cash buyers points to a deep pool of purchasers able to complete deals without bank financing, giving the market some resilience as borrowing becomes more expensive.

Mortgages nonetheless remain an important source of funding. Mortgage adviser Lomond said lender appetite was healthy among both resident and non-resident buyers, with banks competing for new business, particularly in refinancing and mortgage buyout cases.

(Source: Khaleej Times)