Mortgage Loans Are a Top Concern for Residents in the UAE
Mortgage loans are one of the most important topics for residents in the UAE, having witnessed significant growth in recent years. By the end of the third quarter of 2025, property purchases recorded borrowings amounting to 226.5 billion dirhams, reflecting the increasing trend of real estate financing in the country. This type of loan occupies a leading position as the most borrowed sector among residents, demonstrating their strong desire to invest in real estate.
Increase in Mortgage Loans in the UAE
Data from the Central Bank indicates that loans for purchasing properties accounted for the largest share of the total, comprising 14% of the overall loans to residents. This means that the cumulative loan balance to secure their real estate investments has reached 273.1 billion dirhams. Additionally, mortgage loans represent 83% of the total acquisitions in the real estate sector, highlighting that residents in the UAE place utmost importance on this type of financing.
Comparison with Other Sectors
Alongside the real estate sector, financial institutions recorded the second-largest borrowing percentage, accounting for 12% of the total loans to residents, indicating a notable increase of 23%. Government loans also saw a growth of 12%, demonstrating the diversity of interests in the borrowing market.
Details of Borrowing in Other Sectors
Regarding commercial sectors, their share reached 9.5%, showcasing the strength of the commercial economy in the UAE. Wholesale trade loans secured the largest share, growing by 17.7%. Furthermore, data revealed that the transportation, storage, and communications sector accounted for 6% of total borrowing by residents, reflecting the ongoing need for expansion in these areas.
Analysis of Industrial Loans
In the industrial sector, the borrowing share stood at 5%, indicating stability among investors in this area. The petrochemical and basic metals industries made up significant portions of total borrowing, reflecting that residents are seeking to diversify their investments across multiple sectors.
Data shows that total loans for residents in all forms are approaching 812 billion dirhams, illustrating the growing interest in seeking financing for various activities and economic sectors. This trend reflects increasing confidence in investments in the UAE, undoubtedly placing mortgage loans at the forefront of residents’ concerns in the country.