Dubai real estate stays hot with 177,000 deals despite October dip
Mid-income buyers dominate mortgage demand and property ownership
DUBAI – Dubai’s property market continues to display remarkable resilience in 2025, maintaining strong overall performance despite a seasonal cooldown in October.
Property Finder’s latest market report revealed that total year-to-date (YTD) transactions hit 177,519 deals worth Dh554.9 billion, powered by robust end-user and mid-income activity across both primary and secondary markets.
While October reflected a mild dip in activity – mainly due to lower primary ready transactions – data indicates an otherwise solid trajectory. The moderation, analysts suggest, follows predictable seasonal trends linked to the summer holiday period, with demand expected to remain buoyant heading into the final quarter.
Primary market trends
Despite an 8% decline in value and a 6% drop in transaction volume compared to October 2024, Dubai’s primary market remained steady. Over the first ten months of 2025, the segment surged 18% year-on-year to reach 103,939 transactions, driven by a 33% increase in total primary value.
Al Yelayiss 1 stood out as the month’s strongest-performing area, recording a dramatic rise from just three transactions last year to 153 this October – equivalent to 11% of total primary transaction value. Nad Al Sheba First followed closely, contributing 9% of total value, cementing its status as one of Dubai’s most sought-after residential zones.
Although the primary ready market saw an 18% fall in value and 20% decline in volume, off-plan activity continued to shine. YTD figures showed off-plan and secondary segments rising by 45% in value and 52% in volume compared to the previous year.
Secondary market snapshot
October’s secondary market remained stable, registering Dh25.9 billion across 7,718 transactions – up 2% in value and 1% in volume year-on-year. The performance was bolstered by secondary off-plan sales, which climbed 15% in value and 8% in volume.
Among key hotspots, Al Barsha South Fourth recorded 687 deals totalling Dh1.4 billion, nearly doubling from Dh768 million a year earlier. The Burj Khalifa area also reported strong momentum, with value up 17% year-on-year as luxury apartments continued to attract high-end investors and global buyers.
Buyer and tenant preferences
Apartments continue to dominate Dubai’s property landscape, representing 78% of rental searches and 57% of buyer demand. Studio apartments make up roughly 25% of rental queries but only 15% of purchase interest, suggesting that while tenants still prefer compact spaces, buyers are increasingly seeking long-term ownership opportunities.
One-bedroom apartments remain the most sought-after option, capturing 36% of buy-side searches and 37% of rental interest. Rising rental prices have encouraged many tenants to transition toward ownership, particularly among those eyeing smaller, more affordable units. This reflects a growing sentiment that homeownership provides stability and a hedge against escalating rent costs.
Mortgage market insights
Dubai’s mortgage activity held firm in October 2025, totalling Dh15.98 billion across 3,999 transactions. Although total value dipped by 1% year-on-year, transaction volumes increased by 10%, signalling sustained end-user confidence.
The divergence between lower values and higher volumes underscores a shift toward smaller-ticket deals as mid-income buyers opt for affordable homes. The average mortgage value per property fell 16% year-on-year to Dh4.17 million.
Cumulatively, the city recorded Dh148.1 billion in mortgage transactions from 35,554 deals in the first ten months of 2025. While overall value held steady, volume increased 19% compared to 2024 – a sign that affordability and financial prudence are shaping market activity.
Mortgage Finder’s analysis revealed that households earning between Dh20,000 and Dh40,000 per month now represent almost 30% of all mortgage requests, making them the single largest income segment in the market. Within this bracket, 81% are end-users purchasing homes to live in, while 16% are investors. Apartments dominate this group’s preferences, accounting for over 88% of their searches.
High-income earners – those with monthly incomes above Dh80,000 – comprise around 18% of mortgage cases, contributing 35% of investment-related searches. Their focus remains split between villas (32%) and premium apartments (63%), reflecting steady appetite for upscale properties and reinforcing Dubai’s position as a magnet for wealth-driven investment.
Market outlook
Commenting on the latest figures, Cherif Sleiman, Chief Revenue Officer at Property Finder, said October’s data paints an encouraging picture of a market balancing resilience with realism. “The slight cooling reflects the seasonal slowdown, but the fundamentals remain solid. Areas like Nad Al Sheba, Al Barsha and Al Yelayiss 1 continue to drive activity, while the shift toward smaller apartments indicates buyers are adapting to rising rents and prioritising ownership,” he said.
The Property Finder report suggests that Dubai’s real estate landscape is entering a more sustainable phase – one anchored by genuine end-user demand and broad-based affordability. With mid-income earners emerging as key contributors, the city’s property market continues to demonstrate its capacity for stable, long-term growth across all income tiers.