Starting February 1, 2025, property buyers in Dubai will need to pay higher Upfront Property Costs in Dubai as UAE banks will no longer finance the four per cent Dubai Land Department (DLD) fees and the two per cent brokerage commission. This policy shift means that individuals purchasing real estate through mortgages must now cover these fees separately instead of having them included in the total loan amount.

Previously, banks provided financing for these charges as part of the mortgage structure, easing the financial burden on buyers. However, with this new regulation, industry experts anticipate a shift in buyer behavior, potentially impacting market demand, especially among first-time buyers and those relying heavily on mortgage financing.

Real estate professionals believe that this move could encourage a more cautious approach to property investment, with buyers needing to allocate additional funds for Upfront Property Costs in Dubai before finalizing their purchases. While some experts suggest that this might slow down transaction volumes initially, others argue that it could lead to a healthier market by ensuring buyers have sufficient financial stability before committing to property investments.

Market analysts will be closely monitoring the effects of this policy change on Dubai’s real estate sector, particularly in terms of demand trends and buyer sentiment.

D&B Properties advises potential buyers to carefully assess their financial readiness and plan their budgets accordingly to accommodate the revised upfront payment structure. Our experts recommend consulting with real estate professionals to explore alternative financing solutions and make informed investment decisions in light of these changes.

At D&B Properties, we are here to assist you every step of the way. Whether you need guidance on budgeting for these changes or exploring different property options, our team of experts is ready to help you make the best investment decisions. Contact us today for tailored advice and support.

About D&B Properties:

D&B Properties is a leading real estate agency in Dubai, offering specialized services across a variety of residential and commercial properties. The company is dedicated to providing expert guidance, market insights, and innovative solutions to meet the needs of investors, developers, and homeowners.

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