Three-month EIBOR — the reference rate behind most UAE villa mortgages — has eased roughly thirty basis points since November 2024. That has translated into meaningfully better headline pricing on tracker products, and a narrower premium for five-year fixed structures.
What lenders are quoting today
- Five-year fixed: 4.49% to 4.99% on prime villa paper.
- One-year fixed reverting to tracker: 3.99% to 4.29% in year one.
- Pure tracker: EIBOR + 1.49% to + 1.99% depending on profile.
What we are watching next
The Federal Reserve trajectory remains the dominant input into AED pricing via the dollar peg. We expect at least one further EIBOR easing in 2025, but lenders will likely retain margin discipline given softer headline collateral values.
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