Dubai Property Market Stays Strong as Mid-Income Buyers Drive Demand

DUBAI, UAE: Dubai’s property market continues to demonstrate resilience, with sustained demand from mid-income buyers and investors offsetting a seasonal slowdown in October, according to Property Finder’s latest Dubai Market in Minutes report.

Despite a temporary dip in activity, the emirate’s year-to-date (YTD) performance remains robust, with total primary ready transactions up 74% in value and 63% in volume compared to 2024. Meanwhile, the off-plan secondary market recorded 45% growth in value and 52% in volume year-on-year.

Primary Market Overview

The report highlights a moderate cooldown in October 2025, marked by an 8% decline in value and a 6% drop in volume compared to October 2024. However, on a broader scale, Dubai’s primary market saw an 18% year-on-year increase in total transactions for the first 10 months of 2025, with 103,939 deals completed.

Al Yelayiss 1 emerged as the top-performing area, accounting for 11% of total primary transaction value, followed by Nad Al Sheba First at 9%. Both areas witnessed sharp rises in demand, reflecting Dubai’s ongoing urban expansion and appeal among mid-income homebuyers.

Secondary Market Remains Steady

Dubai’s secondary sales market continued to perform well, registering $7 billion (AED 25.9 billion) across 7,718 transactions in October — a slight 2% increase in value and 1% in volume year-on-year.

The off-plan secondary segment contributed significantly, rising 15% in value and 8% in volume. Al Barsha South Fourth led this growth with 687 transactions worth $381 million (AED 1.4 billion), while Burj Khalifa recorded a 17% jump in transaction value.

Evolving Consumer Preferences

Apartments remain the most sought-after property type, representing 78% of rental searches and 57% of purchase interest. The demand for one-bedroom and studio apartments continues to outpace larger units, reflecting the growing trend of affordability-driven ownership.

Studio apartments accounted for 15% of purchase interest, as tenants seek ownership to mitigate rising rental costs and secure long-term assets.

Mid-Income Buyers Drive the Mortgage Market

Dubai’s mortgage market recorded $4.35 billion (AED 15.98 billion) in October 2025 across 3,999 transactions, marking a 10% rise in volume despite a 1% drop in total value. The average mortgage value per unit decreased by 16% to $1.14 million (AED 4.17 million), underscoring a shift toward more affordable homes financed by mid-income buyers.

Market Resilience and Outlook

Cherif Sleiman, Chief Revenue Officer at Property Finder, said: “October’s figures offer fascinating insights into consumer behaviour in the Dubai property market. The slight cooling reflects the annual slowdown during the summer vacation period, but this is not a cause for concern. Key areas such as Nad Al Sheba, Al Barsha, and Al Yelayiss 1 continue to drive strong demand, alongside consistent activity in the Burj Khalifa area.

The shift towards smaller apartments shows that more people are taking practical steps toward ownership as a hedge against rising rents. While high-end villas and luxury residences will always appeal to affluent buyers, Dubai’s mid-income population remains the foundation of its property market growth.”