UAE Commercial Property Loan Calculator - Calculate Mortgage Payments 2025
Calculate your commercial real estate loan payments in the UAE with our comprehensive mortgage calculator. Get accurate monthly payment estimates, total interest costs, and complete amortization schedules based on December 2025 rates from UAE Central Bank and major UAE banks including Emirates NBD, Dubai Islamic Bank, RAKBANK, ADCB, and First Abu Dhabi Bank.
Commercial Property Mortgage Calculator
December 2025 UAE Rates: UAE Central Bank base rate is 3.65%. Commercial property mortgage rates currently range from 4.5% to 6.5% depending on borrower profile, property type, and lender. Maximum LTV: 70-75% for UAE nationals, 60-65% for expatriates.
Your Commercial Property Loan Breakdown
Based on December 2025 UAE lending standards
Financing AED 0 over 0 years
Property Value
Down Payment
Total Interest Paid
Total Amount Paid
Amortization Schedule (First Year)
| Month | Payment | Principal | Interest | Balance |
|---|
💡 Next Steps: This calculator provides estimates based on standard amortization. Actual commercial mortgages may include processing fees (1-2%), valuation fees, registration fees (typically 0.25% Dubai Land Department), and insurance. Contact Emirates NBD, First Abu Dhabi Bank, Dubai Islamic Bank, RAKBANK, or ADCB for personalized commercial property financing quotes.
Understanding UAE Commercial Property Financing
Commercial property financing in the UAE enables businesses and investors to purchase office spaces, retail properties, warehouses, and other income-generating real estate. As of December 2025, the UAE Central Bank has reduced its base rate to 3.65%, following global monetary policy adjustments. This has positively impacted commercial mortgage rates, which now range from 4.5% to 6.5% depending on borrower qualifications, property type, and chosen lender. UAE banks typically finance 60-75% of commercial property values with repayment terms extending up to 25 years.
Key Insight: Commercial property loans in the UAE require higher down payments than residential mortgages (typically 25-35% versus 15-20%), but offer competitive interest rates when used for income-generating properties. The UAE's strategic location, tax-free environment, and robust real estate market make commercial property investment attractive for both local and international investors.
Commercial Mortgage Payment Formula
UAE commercial property loans use standard amortization calculations to determine monthly payments that fully repay principal and interest over the loan term.
Monthly Payment Calculation
Mortgage Payment Formula (EMI):
Where:
- M = Monthly payment in AED
- P = Principal loan amount (Property Value − Down Payment)
- r = Monthly interest rate (Annual Rate ÷ 12)
- n = Total number of monthly payments (Years × 12)
Loan-to-Value (LTV) Ratio
Maximum LTV by UAE Central Bank Regulations:
- UAE Nationals: Up to 70-75%
- Expatriates: Up to 60-65%
- This means minimum down payment: 25-40% of property value
Total Interest Cost
Total Amount Repaid:
Current UAE Commercial Mortgage Rates (December 2025)
Interest rates for commercial property financing in the UAE are influenced by the Central Bank of UAE base rate, global economic conditions, and individual lender policies. Following the December 2025 rate cut to 3.65%, commercial mortgage rates have become more favorable.
UAE Bank Commercial Property Rates
| Bank | Rate Range | Max LTV | Max Loan Term |
|---|---|---|---|
| Emirates NBD | 4.75% - 5.99% | Up to 70% | 15-20 years |
| First Abu Dhabi Bank (FAB) | 4.50% - 5.75% | Up to 75% (nationals) | 25 years |
| Dubai Islamic Bank | 5.25% - 6.25% | Up to 65% | 15 years |
| RAKBANK | 4.99% - 6.50% | Up to 75% | 15 years |
| Abu Dhabi Commercial Bank (ADCB) | 4.85% - 5.99% | Up to 70% | 20 years |
| Mashreq Bank | 5.10% - 6.25% | Up to 65% | 15 years |
Rate Factors by Property Type
| Property Type | Typical Rate Premium | Max LTV | Considerations |
|---|---|---|---|
| Office Space | Base Rate | 70% | Prime locations preferred |
| Retail / Shop | Base Rate | 65-70% | Foot traffic important |
| Warehouse / Industrial | +0.25% - 0.50% | 60-65% | Location and facilities |
| Mixed-Use | Base Rate | 65-70% | Income diversification valued |
| Hotel / Hospitality | +0.50% - 1.00% | 60% | Higher risk, market dependent |
| Commercial Land | +1.00% - 1.50% | 50-60% | Development plans required |
How to Use the UAE Commercial Property Calculator
Follow these steps to accurately calculate your commercial mortgage payments in the UAE:
- Enter Property Value: Input the total purchase price of the commercial property in AED. This should reflect the agreed-upon sale price or current market valuation.
- Set Down Payment Percentage: UAE commercial mortgages require 25-40% down payment. Expatriates typically need 35-40%, while UAE nationals may qualify for 25-30%. Higher down payments secure better rates.
- Review Loan Amount: The calculator automatically computes the financed amount based on property value minus down payment. Ensure this doesn't exceed maximum LTV ratios set by UAE Central Bank.
- Input Interest Rate: Enter the annual percentage rate quoted by your UAE bank. As of December 2025, rates range from 4.5% to 6.5%. Compare offers from multiple banks including Emirates NBD, FAB, DIB, and RAKBANK.
- Select Loan Term: Choose repayment period from 5 to 25 years. Shorter terms mean higher monthly payments but significantly less total interest. Most UAE banks offer 15-20 year terms for commercial properties.
- Specify Borrower Type: UAE nationals typically qualify for higher LTV ratios and sometimes preferential rates compared to expatriates.
- Choose Property Type: Different commercial property types (office, retail, warehouse, hotel) may have varying rate implications and LTV limits.
- Select Emirate: Property location influences lending criteria. Dubai and Abu Dhabi have the most developed commercial mortgage markets.
- Calculate: Generate comprehensive breakdown including monthly payment, total interest, and first-year amortization schedule.
UAE Commercial Property Financing Requirements
Major UAE banks have specific qualification criteria for commercial property loans. Meeting these requirements is essential for approval and favorable terms.
Eligibility Criteria
- Minimum Age: 21 years (some banks require 25)
- Maximum Age: Typically 65-70 years at loan maturity
- Minimum Income: AED 25,000 - AED 50,000 monthly for expatriates; varies for UAE nationals and companies
- Employment Status: Salaried employees must have 6-12 months employment; self-employed need 2-3 years business history
- UAE Residency: Valid UAE residence visa required for expatriates
- Credit History: Clean credit record with no defaults; Al Etihad Credit Bureau (AECB) report reviewed
- Debt Burden Ratio: Total monthly debt obligations typically cannot exceed 50% of gross monthly income
Required Documentation
- Emirates ID and passport copies
- UAE residence visa
- Salary certificate and 6-month bank statements (salaried employees)
- Trade license and financial statements (self-employed/business owners)
- Property valuation report from approved valuers
- Property title deed (if purchased) or Sale Purchase Agreement
- No Objection Certificate (NOC) from developer if applicable
- Company memorandum and articles of association (corporate borrowers)
- Board resolution authorizing the loan (corporate borrowers)
- Business plan and revenue projections for the property
Major UAE Banks Offering Commercial Property Loans
Several prominent UAE banks provide comprehensive commercial real estate financing solutions.
Emirates NBD
The largest banking group in the UAE offers commercial property financing up to AED 7 million with maximum 70% LTV. Emirates NBD provides both fixed and variable rate options with competitive terms for office spaces, retail properties, and warehouses. Loan tenures extend up to 15-20 years depending on property type and borrower profile.
First Abu Dhabi Bank (FAB)
As the UAE's largest bank by assets, FAB offers commercial mortgage solutions up to AED 25 million for both UAE nationals and expatriates. FAB provides preferential rates starting from 4.50% for qualified borrowers and offers flexible repayment terms up to 25 years. The bank finances properties in strategic business districts across all emirates.
Dubai Islamic Bank (DIB)
Dubai Islamic Bank provides Sharia-compliant commercial property financing through Ijara (leasing) and Murabaha (cost-plus) structures. DIB offers competitive profit rates and flexible payment schedules compliant with Islamic finance principles. Maximum financing reaches 65% of property value with tenures up to 15 years.
RAKBANK
RAKBANK's commercial real estate financing extends up to AED 25 million with maximum 75% LTV for qualifying properties. The bank offers both conventional and Islamic financing options with terms up to 15 years. RAKBANK is known for efficient processing and relationship-based lending for established businesses.
Abu Dhabi Commercial Bank (ADCB)
ADCB provides commercial property loans for both UAE nationals and expatriates with flexible fixed and variable interest rate options. Maximum financing up to 70% of property value with competitive rates starting from 4.85%. ADCB specializes in financing office buildings, retail spaces, and mixed-use developments.
Factors Affecting Commercial Mortgage Rates in UAE
Multiple factors influence the interest rates and terms offered by UAE banks for commercial property financing.
Borrower-Related Factors
- Nationality: UAE nationals typically receive 0.25-0.50% better rates and higher LTV ratios than expatriates due to reduced flight risk.
- Income Level: Higher income borrowers (AED 100,000+ monthly) often qualify for premium rates and larger loan amounts.
- Credit Score: Strong credit history (AECB score 700+) results in preferential rates. Poor credit may lead to rejection or rates 1-2% higher.
- Banking Relationship: Existing customers with deposits, salary transfers, or other banking products often receive 0.25-0.50% rate discounts.
- Down Payment: Larger down payments (40-50%) demonstrate financial strength and may secure rate reductions of 0.25-0.50%.
- Debt Burden Ratio: Lower existing debt obligations (DBR under 40%) indicate better repayment capacity and improve loan terms.
Property-Related Factors
- Property Location: Prime areas in Dubai (Downtown, Business Bay, DIFC) and Abu Dhabi (Al Maryah Island, Al Reem) command better rates than secondary locations.
- Property Type: Office spaces and retail in established areas receive better rates than warehouses or undeveloped land.
- Property Value: Higher-value properties (AED 10 million+) in prime locations often qualify for more competitive rates.
- Property Age: Newer properties (under 10 years) are viewed more favorably than older buildings requiring maintenance.
- Rental Income: Properties with existing tenants and proven rental income strengthen loan applications and may improve terms.
- Developer Reputation: Properties from established developers (Emaar, Aldar, Nakheel) are preferred by lenders.
Economic and Market Factors
- UAE Central Bank Base Rate: Currently 3.65% (December 2025), this benchmark influences all lending rates. Changes directly impact variable-rate mortgages.
- EIBOR (Emirates Interbank Offered Rate): Variable-rate loans are typically priced at EIBOR + margin (1-3%). Three-month EIBOR serves as the most common benchmark.
- Global Interest Rates: UAE monetary policy follows US Federal Reserve due to AED-USD peg, making UAE rates responsive to US rate changes.
- Real Estate Market Conditions: Strong property markets with rising values encourage lending; declining markets lead to tighter credit and higher rates.
- Economic Growth: UAE GDP growth projections of 4.9% (2025) and 5.3% (2026) support favorable lending conditions.
Fixed vs. Variable Rate Commercial Mortgages
UAE banks offer both fixed and variable interest rate structures for commercial property financing, each with distinct advantages.
Fixed-Rate Mortgages
Fixed rates remain constant for a specified period (typically 1-5 years), providing payment stability and budgeting certainty. After the fixed period, rates usually convert to variable or can be renegotiated. Following the December 2025 rate cuts, fixed rates for commercial properties range from 4.75% to 6.00%. Fixed rates are ideal for borrowers expecting rates to rise or requiring predictable cash flow for business planning.
Variable-Rate Mortgages
Variable rates fluctuate based on EIBOR (Emirates Interbank Offered Rate) plus a margin. As of December 2025, with declining EIBOR following Central Bank rate cuts, variable rates have become attractive at 4.50% to 5.75%. Variable rates typically start 0.25-0.50% lower than fixed rates but carry uncertainty. Best suited for borrowers expecting stable or declining rates and those who can manage payment fluctuations.
Hybrid Structures
Some UAE banks offer hybrid products combining fixed and variable periods. For example, rates might be fixed for 3 years, then convert to variable for the remaining term. This provides initial stability while potentially benefiting from rate decreases in later years.
Common Questions About UAE Commercial Property Loans
Tips for Getting the Best Commercial Mortgage Rate in UAE
Implement these strategies to secure favorable commercial property financing terms:
- Improve Credit Score: Maintain excellent payment history on all credit facilities. Check your AECB credit report and resolve any discrepancies. Scores above 700 qualify for best rates.
- Increase Down Payment: Providing 40-50% down payment (higher than minimum) demonstrates financial strength and can reduce rates by 0.25-0.50%.
- Compare Multiple Banks: Obtain quotes from at least 3-5 UAE banks including Emirates NBD, FAB, DIB, RAKBANK, and ADCB. Rate differences can be 0.5-1.5% between lenders.
- Leverage Banking Relationships: Existing customers with salary transfers, deposits, or business accounts often receive preferential rates and faster processing.
- Choose Prime Locations: Properties in established business districts (DIFC, Business Bay, Abu Dhabi CBD) qualify for better rates than peripheral areas.
- Consider Property with Existing Tenants: Income-generating properties with lease agreements strengthen applications and may improve terms.
- Time Your Application: Apply when Central Bank rates are declining (like December 2025) to secure better terms. Monitor EIBOR trends for variable-rate timing.
- Use Mortgage Brokers: Professional brokers have relationships with multiple lenders and can negotiate better rates and terms on your behalf.
- Provide Complete Documentation: Organized, accurate documentation speeds approval and demonstrates professionalism, potentially improving offer terms.
- Negotiate Terms: Interest rates and fees are often negotiable, especially for high-value properties or strong borrower profiles. Don't accept the first offer.
UAE Government and Banking Resources
Official resources for commercial property financing information in the UAE:
Government Authorities
- Central Bank of UAE: Monetary policy, interest rates, and banking regulations - www.centralbank.ae
- Dubai Land Department: Property registration, transaction data, and regulations - www.dubailand.gov.ae
- Abu Dhabi Department of Municipalities and Transport: Property regulations and planning - www.dmt.gov.ae
- Dubai Economy and Tourism: Business licensing and commercial property regulations - www.det.gov.ae
- Al Etihad Credit Bureau: Credit reports and scores - www.aecb.gov.ae
Major UAE Banks (Commercial Property Financing)
- Emirates NBD: www.emiratesnbd.com - Commercial mortgage up to AED 7 million
- First Abu Dhabi Bank (FAB): www.bankfab.com - Up to AED 25 million commercial financing
- Dubai Islamic Bank: www.dib.ae - Sharia-compliant commercial property finance
- RAKBANK: www.rakbank.ae - Commercial real estate loans up to AED 25 million
- Abu Dhabi Commercial Bank (ADCB): www.adcb.com - Flexible commercial mortgage solutions
- Mashreq Bank: www.mashreqbank.com - Business property financing
⚠️ Important Disclaimer: This calculator provides educational estimates based on standard amortization formulas and December 2025 market data from UAE Central Bank and major UAE banks. Actual loan terms include additional fees (processing 1-2%, DLD registration 0.25%, valuation, insurance), vary by lender, and depend on complete credit assessment. Interest rates are subject to change based on UAE Central Bank policy and market conditions. Always obtain written quotes from multiple UAE banks, review all terms carefully, and consult with financial advisors before committing to commercial property financing. Loan eligibility subject to UAE Central Bank regulations and individual bank policies.