Financing commercial property in Dubai — offices, retail units, warehouses, and mixed-use assets — operates under different rules from residential mortgages. LTV limits are lower, income assessment is more complex, and fewer lenders actively compete in this segment. This guide covers what commercial buyers and investors need to know.
How commercial mortgages differ from residential
The most significant difference is LTV. Commercial property mortgages in the UAE typically carry a maximum LTV of 65–70%, compared to 80% for residential properties. This means commercial buyers need a minimum deposit of 30–35%, plus upfront costs (DLD, agent, bank fees).
Interest rates on commercial mortgages are also generally higher than residential rates, reflecting the lender's higher risk perception. Commercial properties can be harder to value and can take longer to sell in a downturn, so banks price for that additional risk. Typical commercial mortgage rates in the UAE are 0.5–1.5% higher than comparable residential products.
Tenures are also shorter — most commercial mortgages in the UAE are offered over 15–20 years rather than the 25 available on residential products. This increases monthly repayments for the same loan amount and should be factored into cash flow planning.
Income assessment for commercial borrowers
For owner-occupiers (buying commercial space for their own business use), income assessment follows similar principles to self-employed residential mortgages: the bank reviews audited accounts, business bank statements, and the sustainability of the business income to service the debt.
For investors buying commercial property to let, lenders will also consider the rental income from the property — but typically at a discount to the actual or expected rent (a "stress rate" or coverage ratio). The lender wants to see that the property income alone could sustain the mortgage even at below-market occupancy.
Commercial mortgage documentation
- Passport, Emirates ID, and residency visa
- Valid trade licence(s) for the borrowing entity
- 2–3 years' audited financial statements
- 12 months' business and personal bank statements
- Memorandum of Association and company ownership structure
- Property details and title deed (if property is held by a company)
- Tenancy agreements (for investment properties with existing leases)
Processing times for commercial applications are generally longer than residential — allow 4–8 weeks for a complete assessment. Working with an advisor who has experience in commercial financing ensures your application is routed to the right lenders and structured correctly from the outset.