Buyers in Dubai and Abu Dhabi are increasingly choosing home ownership over renting, with demand shifting towards larger and higher-value properties, according to new data released by Property Finder.
The property portal outlined key residential market trends shaping buyer behaviour as the UAE moves further into 2026, pointing to strong purchase intent across both emirates.
Buying over renting
In Dubai, Property Finder data shows a clear move away from renting. Its PF Market Pulse survey found that 70% of respondents plan to buy a home within the next six months. Sales listings accounted for 49% of platform impressions during 2025, while interest in rental listings declined.
First-time buyers played a major role, supported by long-term residency policies and ownership-linked visas. Dubai’s First-Time Home Buyer programme helped more than 2,000 residents purchase their first homes, generating over Dhs 3.25 billion in residential sales during the last six months.
Shift to premium
Buyer preferences in Dubai continued to move up the value scale. Homes priced below Dhs 1,000 per square foot made up 8% of the market, down from 14% a year earlier.
At the same time, premium and luxury homes priced above Dhs 2,500 per square foot increased their market share to 20%, compared to 15% previously. Listings in this segment rose by 27%, supported by high-net-worth inflows and an estimated $63 billion in incoming wealth.
Mortgage Finder data showed buyers allocating a larger share of their income to repayments, rising from 23% to 31% year on year.
Apartments and villas
Apartments accounted for 93% of residential transactions in Dubai, reflecting stronger supply and wider choice. Villa transactions declined from 10% to 7% due to limited availability, but villa prices rose by 14%, compared to 6% growth for apartments.
Around 72% of villa transactions were in the mid-market range of Dhs 1,000 to Dhs 1,800 per square foot, highlighting continued demand for space and privacy.
Studio performance
Studios strengthened their position within the apartment market, accounting for 25% of transactions, up from 22% a year earlier. Prices grew by 14% annually over the past three years, while rental yields averaged around 6%, compared to 4% to 5% for larger units.
Community preferences
Established areas such as Downtown Dubai, Dubai Marina, Palm Jumeirah, Business Bay, Jumeirah Village Circle, JBR and Dubai Hills Estate remained among the most active locations.
Newer off-plan projects, including Dubai Islands and Maritime City, also attracted interest, particularly for luxury and waterfront properties.
Abu Dhabi demand
In Abu Dhabi, sales listings made up 39% of Property Finder platform impressions, up from 26% the previous year, pointing to a stronger preference for home ownership.
Apartments continued to dominate demand, representing 72% of residential transactions, supported by healthy supply across locations and price points.
Within the villa segment, buyers increasingly opted for larger homes. Properties with four or more bedrooms accounted for 62% of villa transactions, compared to 38% three years ago, reflecting growing family-led and long-term settlement demand in the capital.
