Cash purchases reach 44% of Betterhomes Dubai sales
Cash purchases rose to 44% of Betterhomes' Dubai residential sales in Q3 from 36% in Q2, as the UAE central bank raised its base rate.
The share of cash purchases rose to 44% of Betterhomes' residential sales in Dubai during the third quarter of 2026, against 36% in the second quarter, according to Khaleej Times.
Mortgage-financed deals fell to 56% from 64% in the previous quarter, as the Central Bank of the UAE raised its base interest rate from 3.65% to 3.90% effective 17 September.
The shift indicates that some buyers prefer to avoid the high cost of financing and pay the price in cash, at a time when mortgages remain the largest source of financing for most deals.
The market is monitoring the impact of interest rates on the purchase decision, as these rates affect the monthly loan cost and the buyer's ability to commit over years of repayment.
What do these terms mean?
Cash purchase: Paying the full price of a property without a loan, meaning the buyer does not bear a monthly interest cost.
Mortgage: A loan provided by a bank to buy a property and secured by the property itself, repaid in instalments with interest.
Base interest rate: A reference rate set by the central bank on which banks build their loan and financing rates.
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