Mid-Income Buyers Power Dubai’s Real Estate Momentum in 2025

Thursday, 13 November 2025

Dubai’s property market remained strong in October 2025, with mid-income homebuyers driving growth in both mortgage activity and apartment ownership. Despite seasonal moderation, demand for smaller, affordable homes continued to rise, underscoring confidence in Dubai’s long-term real estate outlook.

Key Highlights:

Market Resilience: Dubai recorded 103,939 primary transactions in the first 10 months of 2025 — an 18% year-on-year increase, showing steady growth.
High Transaction Value: The total value of primary sales rose 33% YoY, reaching record levels and reflecting sustained investor confidence.
Top-Performing Areas:
- Al Yelayiss 1 led the primary market with a 7% value rise and 153 deals (11% of total).
- Nad Al Sheba First ranked second, accounting for 9% of total primary value.
Secondary Market Strength:
- AED 25.9 billion ($7 billion) in sales across 7,718 transactions, up 2% in value and 1% in volume YoY.
- Al Barsha South Fourth and Burj Khalifa areas saw notable growth, with transaction values climbing up to 17%.
Mortgage Market Expansion:
- AED 15.98 billion ($4.35 billion) in October from 3,999 mortgage deals, with 10% higher volumes YoY.
- Average mortgage value: AED 4.17 million ($1.13 million), reflecting a healthy mix of affordable and mid-range financing.
- Year-to-date: AED 148.1 billion ($40.4 billion) from 35,554 deals, up 19% in volume.
Mid-Income Buyers Lead:
- Buyers earning AED 20K–40K/month now form 30% of all mortgage requests, highlighting the strength of the mid-income segment.
- 81% purchase homes for end-use; 16% invest for returns.
- Apartments account for 88% of mid-income purchases, showing a clear trend toward compact, ownership-driven living.
Apartment Dominance:
- Apartments represent 57% of buyer interest and 78% of rental demand.
- Studios and one-bedroom units continue to outperform larger properties due to lifestyle appeal and affordability.
Market Outlook: Experts note that Dubai’s property market remains stable, balanced, and maturing, supported by demand diversity and a growing homeowner base.