How do interest rates affect Dubai's property market in 2026?

Rates have eased, supporting mortgage demand. The UAE central bank cut its base rate 75bps in H2 2025 to 3.65% and has held there, with three-month EIBOR near 3.7%. Typical mortgage rates run about 3.9-4.75% fixed and higher for variable. Lower borrowing costs aid affordability, though many Dubai purchases remain cash-based, softening the rate impact versus Western markets.