Dubai Mortgage Market Shaken Off Fed's Influence

The impact of Federal Reserve decisions on Dubai's mortgage market is diminishing.

Adriaan Rossouw, Head of Mortgages at Lomond, notes that mortgage rates have remained largely unchanged and buyers are no longer tracking Fed announcements.

This marks a shift in the market where the dirham has been pegged to the US dollar for decades and UAE base rate moves in line with Federal Reserve decisions.

The change reflects banks' increased flexibility to manage rate movements within their own margins, rather than passing changes directly on to borrowers.

With interest rates stabilised at levels below double-digit highs, banks can compete on mortgage pricing without adjusting lending rates for every Fed decision.