Mid-income buyers continued to shape Dubai’s property market in October 2025, even as overall transaction activity saw a moderate seasonal slowdown, according to Property Finder’s latest data.
The portal’s monthly report shows that while total transaction values dipped slightly, mortgage activity among mid-income earners remained strong, pointing to a more affordability-driven market.
Mortgage trends
Dubai’s mortgage market recorded Dhs15.98 billion across 3,999 transactions in October. Although total value fell by 1% compared to the same month last year, transaction volumes rose by 10%, suggesting that more buyers are entering the market through financing rather than cash purchases.
Mortgage Finder data indicates that the Dhs20,000–Dhs40,000 monthly income group accounted for nearly 30% of all mortgage requests — the largest segment by far. Within this group, 81% of buyers were end-users purchasing homes to live in, while 16% were seeking investment opportunities. Apartments represented over 88% of their choices, showing a clear focus on affordability.
The average mortgage value per unit dropped 16% year-on-year to Dhs4.17 million, signalling sustained activity but smaller loan sizes, as buyers with modest budgets opt for compact and cost-effective properties. Year-to-date, Dubai has seen Dhs148.1 billion in mortgage deals from 35,554 transactions, with volume rising 19% compared to 2024.
Rise of value-conscious ownership
Analysts say the figures reflect a shift toward sustainable, end-user-driven growth. Many tenants are moving into ownership to counter rising rents, particularly by choosing studio and one-bedroom apartments. These smaller homes now make up a growing share of purchase interest, as buyers look to secure long-term assets while managing costs.
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 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. 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.”
Market overview
Across the wider market, primary sales saw an 8% drop in value and a 6% decline in volume compared with October 2024. However, from January to October 2025, primary transactions rose 18% year-on-year, reaching 103,939 deals. Al Yelayiss 1 and Nad Al Sheba First were the top-performing areas, contributing significantly to overall sales value.
Secondary market transactions remained steady at Dhs25.9 billion, up 2% in value and 1% in volume from last year. Growth was largely driven by secondary off-plan sales in areas such as Al Barsha South Fourth and Burj Khalifa.
The growing influence of mid-income buyers and the continued rise in mortgage-backed purchases suggest a maturing, balanced property market. With affordability and stability driving activity, analysts expect Dubai’s real estate sector to remain resilient, supported by both end-user demand and selective investment from higher-income buyers.
tanvir@dubainewsweek.com
