The Dubai real estate landscape is witnessing notable shifts in buyer demand, particularly in mortgage trends segmented by income groups. Understanding these mortgage trends by income group is crucial for stakeholders looking to navigate this dynamic market effectively. Recent data not only underscores the vitality of Dubai’s real estate but also highlights significant shifts in what buyers are searching for, revealing a growing preference for more affordable housing options.
The latest Property Finder Market Performance Highlights show that while activity has softened slightly following the summer vacation period, the underlying fundamentals of the market remain strong. Strong mortgage activity continues to bolster demand in key communities, including Al Yelayiss 1, Nad Al Sheba First, Al Barsha South Fourth, and the prestigious Burj Khalifa area.
Dubai Real Estate Analysis
Despite a dip in the primary market, with a decline of 8 percent in value and 6 percent in volume compared to October 2024, the first ten months of 2025 have made significant strides. The transaction count surged by 18 percent year-on-year, culminating in 103,939 transactions. Simultaneously, the total value of primary transactions spiked by an impressive 33 percent, reflecting sustained investor confidence.
Al Yelayiss 1 has emerged as a standout performer in this sector, with transaction values climbing nearly 7 percent and volumes soaring from just three to 153 transactions. This area now represents 11 percent of the total primary value, with Nad Al Sheba First following closely, contributing 9 percent.
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Secondary Sales Surge
The secondary sales market has also shown vigor, achieving AED 25.9 billion ($7 billion) from 7,718 transactions — marking a 2 percent year-on-year increase in value and a 1 percent increase in volume. This growth was primarily driven by secondary off-plan sales, which saw a surge of 15 percent in value and 8 percent in volume.
Hotspots like Al Barsha South Fourth and Burj Khalifa have played a critical role in this growth. Al Barsha South Fourth reported 687 transactions valued at AED 1.4 billion ($381 million), an increase from AED 768 million ($209 million) in October 2024, while Burj Khalifa’s total transaction value escalated by 17 percent year-on-year.
Apartments continue to dominate buyer and renter demand, representing 57 percent of purchase inquiries and 78 percent of rental searches. Interestingly, studio apartments account for 25 percent of rental interests but only 15 percent of purchasing inquiries, while one-bedroom units attract 36 percent of buyer searches and 37 percent of rental interests. This shift towards smaller units reflects a response to rising rents, as many residents pursue smaller, more affordable homes to protect against escalating rental costs.
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Mortgage Market Trends
In October 2025, Dubai’s mortgage market saw AED 15.98 billion ($4.35 billion) from 3,999 transactions. Although the total value dipped by 1 percent year-on-year, transaction volumes increased by an impressive 10 percent, reflecting ongoing end-user demand backed by financing options.
The average mortgage value fell 16 percent year-on-year, now standing at AED 4.17 million ($1.13 million), which suggests a shift toward smaller mortgage amounts. From January to October 2025, there was a recorded AED 148.1 billion ($40.4 billion) in mortgage activity across 35,554 deals. Notably, transaction volume increased by 19 percent while the average value decreased by 10 percent, indicative of a market increasingly focused on affordability.
According to Mortgage Finder, a division of Property Finder, buyers in the AED 20,000–40,000 ($5,445–$10,890) income range account for nearly 30 percent of all mortgage requests, representing the largest segment of the market. Among these buyers, 81 percent are purchasing homes to occupy, while 16 percent are considering investment options. Apartments dominate this group, comprising 88 percent of purchases.
In contrast, high-income earners, defined as those earning AED 80,000 or more per month ($21,780+), make up 18 percent of mortgage applications but account for 35 percent of investment-related queries, showing strong interest in villas and luxury apartments. This dual-focus—mid-income owner-occupiers versus high-income investors—illustrates the maturing nature of the market amid rising buyer confidence in Dubai’s long-term real estate outlook.
Market Outlook
Cherif Sleiman, Chief Revenue Officer at Property Finder, emphasized the ongoing stability in the Dubai property market, even as seasonal variations occur. He noted, “October’s figures offer fascinating insights into consumer behavior in the Dubai property market. The slight cooling of the market reflects the annual slowdown due to the summer vacation period, but this does not raise any red flags.”
“This moderate drop is counterbalanced by the overall resilience of the market, especially in renowned areas. Key residential locales like Nad Al Sheba, Al Barsha, and Al Yelayiss 1 continue to energize the property sector, along with the ever-popular Burj Khalifa area, where demand remains robust.”
He further mentioned the trend of shifting preferences toward smaller apartments as a crucial development. Many individuals are now pursuing cost-effective investment avenues to combat rising rent prices while securing long-term financial value.
While luxury villas and high-end apartments still attract affluent buyers, the latest data indicates a growing trend toward apartment ownership as a pragmatic investment strategy among residents.
