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Dubai real estate: Mortgage trends by income group reveal key shifts in buyer demand

Dubai mortgage data shows mid-income buyers drive demand as average loan values fall and apartment ownership rises

Dubai’s skyline UAE

The Dubai property market remained resilient in October 2025, with a moderate seasonal slowdown offset by continued strength in off-plan and secondary sales, and sustained demand from mid-income mortgage buyers, according to Property Finder.

The latest Property Finder Market Performance Highlights indicate that although activity cooled slightly following the summer vacation period, the market’s fundamentals remain robust, supported by strong mortgage activity and healthy demand in key communities such as Al Yelayiss 1, Nad Al Sheba First, Al Barsha South Fourth, and Burj Khalifa.

In the primary market, sales declined 8 per cent in value and 6 per cent in volume compared to October 2024.

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Despite this dip, the first 10 months of 2025 recorded a year-on-year increase of 18 per cent, reaching 103,939 transactions.

The total value of primary transactions rose 33 per cent over the same period, underscoring sustained investor confidence.

Al Yelayiss 1 emerged as the top-performing area, with transaction values rising by nearly 7 per cent and volumes jumping from just three to 153 transactions, representing 11 per cent of total primary value. Nad Al Sheba First followed, accounting for 9 per cent of the total.

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Secondary sales reach $7bn

The secondary sales market continued to perform strongly, recording AED25.9 billion ($7 billion) across 7,718 transactions — a 2 per cent year-on-year increase in value and 1 per cent in volume.

The growth was driven by secondary off-plan sales, which rose 15 per cent in value and 8 per cent in volume.

Al Barsha South Fourth and Burj Khalifa were standout performers. Al Barsha South Fourth saw 687 transactions worth AED1.4bn ($381m), up from AED768m ($209m) in October 2024, while Burj Khalifa’s total transaction value grew 17 per cent year-on-year.

Apartments continue to dominate both buyer and renter demand in Dubai, representing 57 per cent of purchase interest and 78 per cent of rental searches.

Studio apartments account for 25 per cent of rental searches but only 15 per cent of purchase interest, while one-bedroom units attract 36 per cent of buyer searches and 37 per cent of rental interest.

Demand is increasingly concentrated in smaller units, with studios and one-bedroom apartments outperforming larger properties.

Property Finder analysts note this reflects high rental prices, as many residents seek to own smaller, affordable units to hedge against rent increases and secure long-term value.

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Mortgage market shows steady mid-income growth

Dubai’s mortgage market recorded AED15.98bn ($4.35bn) across 3,999 transactions in October 2025.

While total value dipped 1 per cent year-on-year, transaction volumes rose 10 per cent, reflecting continued end-user demand supported by financing.

The average mortgage value fell 16 per cent year-on-year to AED4.17m ($1.13m), indicating a shift toward smaller-ticket deals.

From January to October 2025, Dubai logged AED148.1bn ($40.4bn) in mortgage transactions from 35,554 deals, with volume up 19 per cent and average value down 10 per cent, signalling a maturing, affordability-focused market.

Data from Mortgage Finder — Property Finder’s mortgage arm — shows that buyers earning AED20,000–40,000 ($5,445–$10,890) per month represent nearly 30 per cent of all mortgage requests, the largest segment of the market.

Within this group, 81 per cent are purchasing homes to live in, while 16 per cent seek investment opportunities. Apartments make up 88 per cent of mid-income purchases.

High-income earners (AED80,000+ per month / $21,780+) represent 18 per cent of mortgage cases but contribute 35 per cent of investment-related searches, with a focus on villas (32 per cent) and luxury apartments (63 per cent).

This balance between mid-income owner-occupiers and high-income investors highlights a mature, dual-track market, driven both by affordability and confidence in Dubai’s long-term property prospects.

Market outlook

Cherif Sleiman, Chief Revenue Officer at Property Finder, said October’s figures demonstrate ongoing stability in the Dubai market despite seasonal softening.

He said: “October’s figures offer fascinating insights into consumer behaviour in the Dubai property market. The slight cooling of the market reflects the annual slowdown over the summer vacation period, but this is not a cause for concern.

“This moderate drop is offset by overall market resilience, especially in key areas and segments. Key residential areas, such as Nad Al Sheba, Al Barsha and Al Yelayiss 1, continue to be the lifeblood of the property market, along with the Burj Khalifa area, where demand is consistently strong.

“The shift towards smaller apartments is a significant trend, indicating more people are looking for cost-effective ways to invest in property here, as well as beating rent hikes.”

Sleiman added that while luxury villas and high-end apartments remain popular among high-income buyers, the data shows that more residents are turning to apartment ownership as a practical, long-term investment.

Dubai real estate

Dubai Property Market – October 2025 at a glance

CategoryKey Figures & Insights
Total primary transactions (Jan–Oct 2025)103,939 (+18 per cent YoY)
Top primary areaAl Yelayiss 1 – 7 per cent rise in value; 153 transactions (11 per cent of total value)
Second-ranked areaNad Al Sheba First – 9 per cent of total primary value
Secondary marketAED25.9 bn ($7bn) across 7,718 transactions (+2 per cent YoY value)
Key secondary hotspotsAl Barsha South Fourth (AED1.4 bn vs AED768 m in 2024); Burj Khalifa (+17 per cent value YoY)
Mortgage market (Oct 2025)AED15.98 bn ($4.35 bn) from 3,999 deals (-1 per cent value YoY / +10 per cent volume)
Average mortgage value per unitAED4.17 m ($1.13 m) (-16 per cent YoY)
YTD mortgage total (Jan–Oct 2025)AED148.1 bn ($40.4 bn) from 35,554 deals (+19 per cent volume YoY)
Largest income group (mortgage requests)AED20K–40K ($5.4K–$10.9K) per month → 30 per cent of all requests
High-income group (AED80K+ /$21.7K+)18 per cent of cases, 35 per cent of investment searches (villas 32 per cent, luxury apartments 63 per cent)
Preferred property typeApartments – 57 per cent of buyer interest / 78 per cent of rental searches
Studio & 1-bed trendsStudios = 25 per cent rental search / 15 per cent purchase interest; 1-beds = 36 per cent buy interest
Key takeawayMarket remains resilient, with mid-income buyers driving mortgage volume and smaller apartments leading demand.

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