Dubai Real Estate: Lending Trends by Income Group Reveal Key Shifts in Buyer Demand

Recent property market performance shows that although activity has slowed following the summer holiday period, the fundamentals of the market remain strong, supported by strong communities such as Al Yelayiss 1, Al Barsha South One, and Burj Khalifa.

In the main market, sales declined 8 percent in value and 6 percent in volume compared to October 2024.

Dubai architecture analysis

Despite this dip, the first 10 months of 2025 recorded an annual increase of 18 percent, reaching 103,939 transactions.

The total number of primary transactions increased by 33 percent in the same period, which saved the confidence of investors.

Al Yelayiss 1 emerged as the most active area, with transaction prices increasing by nearly 7 percent and volumes jumping from just three transactions to 153, representing 11 percent of the total base value. Nad Al Sheba was first and followed, accounting for a total of 9 percent.

The second sale reaches $ 7bn

The secondary sales market continued to perform strongly, recording AED25.9 billion ($ 7 billion) across 7,718 releases – An increase of 2 percent year-on-year in value and 1 percent.

The growth was driven by illegal illegal sales, which rose 15 percent in value and 8 percent in volume.

Al Barsha South Fourth and Burj Khalifa were standing still. Al Barsha South Fourth saw 687 transactions worth AED1.4BN ($381m), up from AED768M ($209m) in October 2024, with the total value of Burj Khalifa growing at 17 per year.

Apartments continue to dominate both buyer and rental demand in Dubai, representing 57 percent of purchase interest and 78 percent of rental searches.

Studio apartments account for 25 percent of rental searches but only 15 percent of purchase interest, while one-bedroom units attract 36 percent of searches and 37 percent of rental interest.

Demand is increasingly focused on smaller units, with studios and one-bedrooms emerging from larger sectors.

Real Estate Analysts Take Note This reflects higher rental rates, because many residents want to find smaller, cheaper units that hedge against long-term value.

A stock market showing moderate growth

Dubai’s bond market was recorded at AED15.98BN ($4.35BN) across 3,999 by October 2025.

While the total amount dipped 1 percent year-on-year, transaction volumes rose 10 percent, indicating continued strong user demand supported by funds.

The average loan amount fell 16 percent year-on-year to AED4.17m ($1.13m), reflecting a shift towards smaller ticket deals.

From January to October 2025, Dubai logged AED148.1bn ($40.4bn) in mortgage sales from 35,554 customers, with a high rate of low volume, showing a mature, easily focused market.

Data from the loan finder – Reventer Refer’s Reventer – shows that consumers who receive AED2010,000 ($5,445-$10,890-$10,890-$10,890) per month for 30 requests, the majority of the market.

Of this group, 81 percent have purchased homes to live in, while 16 percent are looking for investment opportunities. Rooms make up 88 percent of average purchases.

High earners (AED80,000 + per month / $21,780 +) represent 18 percent of mortgage cases but contribute 35 percent of investment-related searches, with a focus on 32 percent) and 63 percent).

This balance between income earners and high net worth investors highlights a mature, dual-track market, driven by availability and confidence in building long-term local opportunities.

Market perspective

Cherif Sleiman, Chief Financial Officer at Property Finder, said the October figures show continued stability in the Dubai market despite occasional softening.

He said: “The statistics for October show an attractive insight into the behavior of buyers in the property market of Dubai. A slight cooling of the market indicates a slowdown in the year, but this is not a reason for concern.

“This moderate draw has been offset by the overall strength of the market, especially in key areas and sections. Important residential areas, such as Al Yebayiss, and Al Sheba area of ​​Burj Khalifa, where demand is strong.

“The conversion of small apartments is an important trend, which shows that many people are looking for more affordable ways to invest in property here, as well as to hit the mountains.”

Sleiman added that while luxury villas and high-end apartments remain popular among high-income buyers, data shows that many residents are turning to apartment ownership as a practical, long-term investment.

Dubai property market – October 2025 at a glance