Banks lend on offices, but less, for shorter and per deal. Here is how it works and the one test to run before you borrow.
A commercial mortgage in the UAE is underwritten on the property and the rent as much as on you. Banks lend less than on homes, for shorter terms, and price each deal individually over EIBOR. Many lend to a UAE company or freezone entity with a personal guarantee from the owner.
An illustration on a AED 2,000,000 office in Business Bay, 50% financed over 10 years at an assumed 6.5% a year. The rate is an assumption for the arithmetic, not a quote.
| AED a year | |
|---|---|
| Loan | 1,000,000 |
| Annual payment, principal and interest | 136,258 |
| Gross rent at the Business Bay yield of 8.0% | 159,056 |
| Rent minus payment, before service charge | 22,798 |
Mortgages are a minority of office deals in Dubai: most are cash or developer payment plans. That is why sellers often accept a lower price for a cash buyer with a short transfer date.
Send me the unit and the loan you have in mind. I check the price against DLD and whether the rent covers the payment.
Yes. UAE banks lend on commercial property, typically 50% to 70% of the value for 5 to 15 years, priced per deal.
Some banks lend to non-residents, usually at a lower loan to value and with more documents. Buying through a UAE company can widen the options.
0.25% of the loan amount plus AED 290.
Transactions: Dubai Land Department, commercial units (offices, shops, showrooms, warehouses), deduplicated, medians. Rents: Ejari new single-unit leases. Fees reflect published DLD and market practice at the date above; confirm with your trustee office before you sign. Not investment, legal or tax advice.