Can foreigners get a mortgage in Dubai or RAK in 2026, and what are the usual down payment rules?

Yes, foreigners can obtain mortgages in Dubai and Ras Al Khaimah (RAK) in 2026. Typically, buyers are required to make a down payment of 25% of the property's value. However, Dubai Land Department (DLD) reports that off-plan properties accounted for 70% of total transactions in Q1 2026, with an average price of AED 2,047/sqft, suggesting that buyers are leveraging financing options to secure these properties. Foreign buyers are increasingly turning to Dubai and RAK for investment, attracted by the robust real estate market and favorable financing conditions.

Core Data and Context

Dubai's real estate market has been a magnet for foreign investors, with Q1 2026 witnessing AED 176.7 billion in total sales, as per the Dubai Land Department. The emirate's property prices averaged AED 1,759/sqft in Q1 2026, marking a 12.5% increase year-on-year. RAK, on the other hand, saw a staggering 240% year-on-year growth in transaction volume, reaching AED 11 billion in Q1 2026, according to RAK Properties. These figures underscore the attractiveness of Dubai and RAK properties to foreign buyers.

Source: Dubai Land Department, RAK Properties, ValuStrat Q1 2026

Deeper Analysis / Mechanics

Foreign investors can secure mortgages from local banks in Dubai and RAK, with a typical down payment requirement of 25%. However, some banks offer more competitive rates for higher down payments, which can be up to 50% in certain cases. Banks often consider the buyer's credit history, income stability, and the property's valuation when determining the mortgage terms. In our Q2 2026 transactions, we observed that buyers with a strong financial profile were able to negotiate better rates and terms, highlighting the importance of a solid financial standing when seeking a mortgage in these markets.

Specific Locations / Examples with Numbers

Hayat Island in RAK, for instance, has seen significant interest from foreign investors, with properties ranging from AED 800 to AED 1,100 per sqft. Rental yields in this area are attractive, at 6–8%, with capital growth of +18% between 2025 and 2026. Cape Hayat, a development on Hayat Island, is 86.5% complete and is expected to draw further investment, as reported by RAK Properties. Similarly, Dubai Marina, a popular destination for foreign buyers, has property prices ranging from AED 1,200 to AED 2,200 per sqft, with rental yields of 5–7% and a capital growth of +10% year-on-year.

Risk Factors / What Buyers Miss / Bear Case

While the Dubai and RAK property markets offer lucrative opportunities, buyers must consider potential risks. Market volatility, changes in regulations, and economic downturns can affect property values and rental yields. For instance, a slowdown in global economic growth could reduce rental demand and affect occupancy rates. Additionally, buyers should be aware of the property's legal status, ensuring there are no encumbrances or restrictions that could impact their investment. In our experience, thorough due diligence is crucial to mitigate these risks.

What to do Next / Practical Steps

For foreign buyers interested in Dubai and RAK properties, it is advisable to engage with a reputable brokerage firm. Sofia Sands Realty (RERA 41793) holds direct allocation on Bay Views and Hayat Island, offering investors exclusive access to premium properties. We recommend conducting thorough market research, understanding the legal framework, and consulting with financial advisors to structure the most favorable mortgage terms. By taking these steps, investors can make informed decisions and capitalize on the robust growth potential of Dubai and RAK's real estate markets.