How to buy an apartment in Dubai from Kuwait with a mortgage

May 23, 2025, 7:35:48 AM | Guide

How to Buy an Apartment in Dubai from Kuwait with a Mortgage: 2025 Complete Guide

Kuwaiti investors are increasingly turning to Dubai real estate market, with over 23% of GCC property buyers coming from Kuwait in Q1 2025. Buying an apartment in Dubai with a Kuwaiti mortgage offers excellent financing options while securing a valuable asset. This guide walks you through every step—from mortgage approval to property handover—all from Kuwait.

Why Kuwaitis Choose Dubai Apartments with Mortgages

  • Competitive Rates (Starting at 4.25% for Kuwaitis)
  •  Higher LTV Ratios (Up to 80% for prime properties)
  • Tax-Free Investment (No property or capital gains tax)
  • Golden Visa Eligibility (750K AED+ purchases qualify)
  • Strong KWD-AED Peg (Currency stability)

Step 1: Mortgage Options for Kuwaiti Buyers

Comparison of Lenders

Bank

Max LTV

Interest Rate

Special Features

Emirates NBD

80%

4.25%

Free property valuation

Kuwait Finance House

75%

4.15%

Sharia-compliant

Commercial Bank of Dubai

70%

4.75%

1% cashback on fees

Burgan Bank Kuwait

65%

5.25%

KWD-denominated loans

Step 2: Eligibility and Documentation

Requirements for Kuwaiti Nationals
  • Minimum salary: KD 1,200/month (≈ AED 14,500)
  • Clean Kuwait Credit Bureau report
  • 6 months bank statements
  • Employer confirmation letter
Special Considerations
  • Self-Employed? Need 2 years audited financials
  • Existing Loans? Total obligations ≤ 50% of income
  • Property Type: Most banks finance freehold only

Step 3: Choosing the Right Apartment

Best Areas for Kuwaiti Investors

Area

Avg. Price (1BR)

Rental Yield

Bank Preference

Dubai Marina

AED 1.2M

6.5%

High (80% LTV)

Downtown Dubai

AED 1.5M

5.8%

High (75% LTV)

Jumeirah Village Circle

AED 750K

8.2%

Medium (70% LTV)

Business Bay

AED 900K

7.1%

High (75% LTV)

Step 4: The Mortgage Process Timeline

1.Pre-Approval (3-5 days)
  • Submit basic documents
  • Receive budget certificate
2.Property Selection (2-4 weeks)
  • Virtual tours available
  • Developer NOC verification
3.Full Approval (7-10 days)
  • Property valuation
  • Final underwriting
4.Registration (3-5 days)
  • 4% DLD fee payment
  • Mortgage lien registration
Total Time: 4-6 weeks typically

Step 5: Money Transfer & Payments

From Kuwait to Dubai
1.Bank Transfer (KNET/SWIFT)
  • CBK allows property investments up to KD 500,000/year
  • Keep all transfer receipts
2.Exchange Houses
  • Better rates for large amounts
  • Must disclose source of funds
3.Developer Payments
  • Some accept direct KWD installments

Step 6: Post-Purchase Considerations

Ongoing Costs
  • Service Charges: AED 12-25/sqft annually
  • Mortgage Insurance: 0.5-1% of loan value
  • Property Management: 5% of rental income
Tax Implications
  • In Dubai: None
  • In Kuwait: Must declare if remitting rental income