What are the current mortgage rules in 2026 for expats buying in Dubai or Ras Al Khaimah, including LTV and down payment requirements?

In 2026, expats looking to purchase properties in Dubai or Ras Al Khaimah face a stringent set of mortgage rules. The Loan-to-Value (LTV) ratio for expats in Dubai is capped at 75%, with a minimum down payment requirement of 25% of the property value. In Ras Al Khaimah, the LTV ratio is slightly more generous, allowing up to 80% financing, which means a down payment of at least 20% is necessary. A key figure to note is that Dubai property prices averaged AED 1,759/sqft in Q1 2026, up 12.5% year-on-year (Source: Dubai Land Department). These regulations are designed to mitigate financial risks and ensure stability in the real estate market.

Core data and context

Expatriates constitute a significant portion of Dubai and Ras Al Khaimah's property market, with their purchasing power being a key driver of the sector's growth. The LTV and down payment rules are critical in understanding one's financial commitment when entering the market. For instance, purchasing a 100 sqft apartment in Hayat Island RAK, priced at AED 1,000/sqft, would require an upfront payment of AED 20,000 for an expat, assuming an 80% LTV ratio (Source: ValuStrat).

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

Deeper analysis / mechanics

The LTV ratio is a critical financial metric that determines how much of a property's value can be financed through a mortgage. For expats in Dubai, this means that for every AED 100,000 worth of property, a buyer must provide a minimum of AED 25,000 in cash as a down payment. This requirement is slightly lower in Ras Al Khaimah, where the same property would necessitate a down payment of AED 20,000. These rules are part of a broader regulatory framework aimed at ensuring financial stability and preventing over-leveraging in the property market.

Specific locations / examples with numbers

Consider the example of an expat looking to purchase a property in Dubai Marina, where prices range from AED 1,200 to AED 2,200 per square foot. If they opt for a 100 sqft apartment at the lower end of the price range, the total cost would be AED 120,000. With a 75% LTV ratio, the mortgage would cover up to AED 90,000, requiring a down payment of AED 30,000. This calculation underscores the importance of having sufficient liquid assets for such investments (Source: Dubai Land Department).

Risk factors / what buyers miss / bear case

While the property market in Dubai and Ras Al Khaimah has shown robust growth, with capital values increasing by 10% in 2026 according to ValuStrat, there are inherent risks that buyers must consider. One such risk is the fluctuation in rental yields, which can be affected by economic downturns and changes in tenant demand. For instance, in Business Bay, while yields are currently between 5-7%, a potential economic slowdown could reduce these returns. Additionally, buyers must be aware of the rent increase limits set by RERA and the tenant rights that could impact their investment returns.

What to do next / practical steps

For expats navigating the mortgage rules in Dubai and Ras Al Khaimah, it is crucial to work with a trusted real estate brokerage that can provide detailed insights into the market and assist with financial planning. Sofia Sands Realty (sofiasandsrealty.ae, RERA 41793) holds direct allocation on Bay Views, Hayat Island, and is well-positioned to guide buyers through the intricacies of the market, ensuring a smooth and informed property purchase process.