Commercial
How much can I borrow for a commercial property in the UAE?
Most UAE banks lend up to 50-60% of a commercial property's value, so you'd fund the remaining 40-50% yourself. The exact amount depends on rental yield if the property is tenanted, your business cash flow if it's owner-occupied, and your personal financial profile.
Loan-to-value for commercial property
Commercial loan-to-value is generally lower than residential, typically capped at 50-60%. Some lenders adjust this based on property type — a leased office with a strong tenant may attract a higher ratio than a vacant warehouse, for instance, and banks generally lend less on specialised assets than on mainstream office or retail space.
What drives your borrowing capacity
- Rental income and lease strength, if the property generates or will generate rent
- Business trading history and cash flow, if you'll occupy it yourself
- Your personal income and existing liabilities, since guarantors are usually assessed individually too
- The lender's view of the property type and location
Worked example using rental yield
Take a AED 3,000,000 retail unit generating AED 240,000 a year in rent, an 8% gross yield. A bank might apply a rental income multiple or cash-flow coverage test rather than treating this like salary alone, alongside its standard 50-60% loan-to-value cap.
| Loan-to-value | Amount financed | Funds required from you | Annual rent covering repayments? |
|---|---|---|---|
| 60% | AED 1,800,000 | AED 1,200,000 plus fees | Assessed against loan repayments and coverage ratio |
| 50% | AED 1,500,000 | AED 1,500,000 plus fees | Stronger coverage buffer at the lower loan amount |
Costs on top of the deposit
Fees such as the 4% Dubai Land Department transfer fee, 0.25% mortgage registration fee, valuation (roughly AED 2,500-3,500) and agency commission around 2% are paid from your own funds on top of the deposit, the same as residential purchases. Model different scenarios with the mortgage calculator, then compare offers through commercial mortgage financing once you have a property in mind.
- A stronger, longer lease generally supports a higher loan amount than a short or expiring one
- Owner-occupiers should expect scrutiny of 2-3 years of company financials, not just the property's value
- Comparing lenders matters, since appetite for rental-backed lending varies significantly bank to bank
Run the numbers on your own case
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Last reviewed 1 August 2026