What financing options are available to a foreign investor purchasing real estate in the UAE?
How can a foreigner access a mortgage or financing to purchase real estate in the UAE?
What are the requirements, conditions and best financing strategies for an international investor in the UAE real estate market?
The main financing options for international buyers in the UAE
Even foreign buyers-nonresidents or residents abroad-can access financing in the UAE's main emirates, subject to specific conditions. For example: Mashreq Bank offers loans of up to AED 10 million for non-residents, with terms of up to 25 years. HSBC UAE offers mortgages up to 60 percent of the property value for foreigners. The important thing is to be aware of the categories of financing: traditional mortgages, Islamic compliant (Sharia) financing, loans from developers with integrated payment plans, and in some cases financing through offshore affiliated companies.
Common mistake: thinking that financing for foreigners is identical to financing for residents. In reality, the terms are more restrictive: higher down payment, slightly higher rates, and often shorter loan term.
What are the key requirements and conditions for obtaining a loan for foreigners in the UAE
To obtain financing as a foreigner in the UAE, some important parameters need to be checked:
Minimum down payment (down payment): for example for properties up to AED 5 million the standard is a minimum down payment of 20%, for over 5 million on the other hand about 30% or more.
Loan to Value (LTV) ratio: for non-residents financing may cover only 50-60% of value in many cases.
Loan Duration: some institutions limit the duration to 20-25 years or up to a maximum age of the applicant.
Documentation: proof of income, bank statements, employment status, property valuation, and sometimes additional requirements for "off-plan" properties.
Interest rates: typically range between about 3% and 5% annually for "normal" loans, but for foreigners could be slightly higher.
Useful strategies for structuring financing optimally in UAE real estate investment
When planning a real estate purchase as a foreigner in the UAE with financing, consider a few strategies:
Choose the right loan size: opting for a mortgage that is too long or too expensive can affect the profitability of the investment.
Evaluate the payment structure: many off-plan projects offer deferred payment plans that can reduce the initial down payment and improve investment leverage.
Compare bank rates and terms: not all banks treat foreigners the same way - turning to a specialized advisor can improve the deal.
Keep a liquid margin: consider that there will be ancillary costs (registration, absentee, insurance, appraisal) and that a contingency (delay, vacation of the property, variable rate) must be managed.
Evaluate currency and exchange rate risk: if your income or assets are in euros, but the loan is in AED or USD, consider how to manage the exchange rate risk.
Why to rely on REMA Living Real Estate for the financing part of your real estate investment
At REMA Living Real Estate, we don't just present real estate to you: we help you understand how to finance your purchase, assess which banks and products are best suited to your profile as an Italian investor, assist you with documentation, leverage analysis, budget planning and contract terms. We know that behind every investment there is a family, a project, a life to be organized - and financing is not just a number, it is integral to the serenity and success of the project.
A practical tip: Evaluate well the sustainability of the financing and not only the installment
A good common sense tip: when choosing financing, do not rely only on the "apparent" monthly installment but evaluate the overall sustainability. Consider "less favorable" scenarios (rate going up, rent going down, currency exchange getting worse) and calculate whether the installment remains sustainable even in those cases. Even better: maintain a cash reserve to cover unforeseen contingencies and make sure that the property and the financing are consistent with the long-term vision of your life project.
