Dubai’s property market may be showing signs of seasonal cooling, but beneath the surface, a new growth engine is humming — mid-income buyers purchasing smaller, more affordable homes.

According to Property Finder’s latest Market Performance Highlights for October 2025, Dubai’s real estate sector remains resilient despite a modest slowdown after the summer holidays. Off-plan and resale markets continued to perform strongly, supported by robust mortgage activity and consistent demand in key communities such as Al Yelayiss 1, Nad Al Sheba First, Al Barsha South Fourth, and Burj Khalifa.

Market Holds Firm Despite a Seasonal Dip

While primary (off-plan) sales fell 8% in value and 6% in volume compared to October 2024, the broader picture tells a different story.
Over the first 10 months of 2025, Dubai recorded 103,939 transactions, up 18% year-on-year, with the total value of these transactions soaring 33%.

This steady growth underscores strong investor confidence and end-user demand — a sign that Dubai’s market isn’t overheating but maturing.

• Al Yelayiss 1 led the way, with transaction volumes leaping from just 3 to 153 deals, capturing 11% of total primary sales value.
• Nad Al Sheba First followed closely, contributing 9% of all primary value, thanks to steady new project activity.

Secondary Market: Strong and Steady

Dubai’s secondary (ready property) market also held its ground.
In October, it logged AED 25.9 billion ($7 billion) across 7,718 transactions, marking a 2% rise in value and 1% increase in volume compared to last year.

Interestingly, secondary off-plan sales (properties resold before handover) jumped 15% in value and 8% in volume, showing that resale confidence remains high even before completion.

Two areas stood out:

• Al Barsha South Fourth, which saw sales almost double year-on-year to AED 1.4 billion ($381 million).
• Burj Khalifa, where transaction values rose 17% year-on-year, reaffirming strong appetite for luxury properties in Dubai’s most iconic address.

Apartments Dominate — Smaller Units Lead Demand

Apartments remain the heartbeat of Dubai’s real estate market:

• They make up 57% of buyer interest and a dominant 78% of rental searches.
• Studios and one-bedroom units are seeing the most traction.

To put it simply:

• Studios represent 25% of rental searches but only 15% of purchase interest.
• One-bedrooms attract 36% of buyer searches and 37% of rental interest.

This trend toward smaller, affordable homes reflects rising rental prices across the city. Many residents are opting to buy compact units to lock in long-term savings and build equity rather than continue paying escalating rents.

Mortgage Market: Mid-Income Buyers Take the Lead

Dubai’s mortgage market continues to expand in ways that tell a powerful story about affordability and accessibility.

In October 2025, mortgage transactions totalled AED 15.98 billion ($4.35 billion) across 3,999 deals.
While the total value dipped slightly (–1% YoY), the volume rose 10%, meaning more people are taking smaller mortgages.

The average mortgage value dropped 16% to AED 4.17 million ($1.13 million) — clear evidence that demand is shifting to mid-range properties.

From January to October 2025, Dubai logged AED 148.1 billion ($40.4 billion) in mortgage deals, with volume up 19% year-on-year, even as the average loan size declined.

According to Mortgage Finder (Property Finder’s mortgage division):

• Buyers earning AED 20,000–40,000 per month ($5,445–$10,890) made up 30% of all mortgage requests, the largest segment of the market.
• Within this group, 81% are end-users buying homes to live in, while 16% are investors.
• Apartments account for 88% of mid-income purchases confirming that practical, smaller units are leading today’s demand.

By contrast, high-income earners (AED 80,000+ per month) make up 18% of mortgage cases, but they drive 35% of investment-related searches, favouring villas (32%) and luxury apartments (63%).

This dual trend mid-income end-users on one side and affluent investors on the other shows Dubai’s market is both broadening and balancing.

The Big Picture

Dubai’s real estate market has reached a remarkable stage: high investor confidence meets growing affordability awareness.
The city recorded a record-breaking $152.3 billion in total property sales in 2025, and yet, the driving force today isn’t just millionaires, it’s the mid-income professionals who see real estate as a path to stability and financial growth.