Dubai’s Real Estate Boom Is Now Powered by Mid-Income Buyers & Smaller Homes

Dubai’s real estate market remains remarkably resilient, with mid-income end-users emerging as the new engine of growth. According to the latest Property Finder Market Performance Highlights, October 2025 saw sustained momentum across both off-plan and secondary markets, even amid a mild seasonal slowdown.

While total primary sales dipped 8% in value and 6% in volume compared to October 2024, Dubai’s fundamentals remain strong. Over the first 10 months of 2025, 103,939 transactions were recorded, up 18% year-on-year, with overall transaction value rising 33%, highlighting continued investor confidence and long-term depth in demand.

Mid-Income Buyers Take Centre Stage
A key shift is underway: mid-income buyers, particularly those earning between AED 20,000–40,000 ($5,400–$10,900)per month, now represent nearly 30% of all mortgage activity.

• 81% of these buyers are purchasing homes for personal use
• 16% are investing for rental income or future appreciation
• 88% of purchases in this bracket are apartments, underscoring Dubai’s growing preference for affordable, manageable urban living

At the same time, average mortgage values have declined 16% year-on-year to AED 4.17 million ($1.13m), signalling a maturing, affordability-focused market where buyers are leveraging financing to step onto the property ladder rather than chasing speculative gains.

Apartments Outperform as Residents Seek Value and Stability

Apartments continue to dominate both buyer and rental demand:

57% of purchase interest and 78% of rental searches are for apartments.
Studio and one-bedroom units are outperforming larger layouts, a direct response to rising rents and a desire for cost-efficient ownership.
This trend reflects a shift in Dubai’s property landscape: as residents become more established, ownership is replacing tenancy as a long-term wealth-building strategy.

Key performing districts in October included:

Al Yelayiss 1 — up nearly 7% in transaction value, representing 11% of total primary value
Nad Al Sheba First — accounting for 9% of total primary value
Al Barsha South Fourth and Burj Khalifa, both strong performers in the secondary market
Secondary sales reached AED 25.9 billion ($7bn) across 7,718 transactions, up 2% year-on-year in value, with growth particularly strong in off-plan resale units (+15% value, +8% volume).

Mortgage Market: Resilient and Expanding

Dubai’s mortgage market recorded AED 15.98 billion ($4.35bn) in lending across 3,999 transactions in October 2025.

While overall value dipped slightly (-1% YoY), transaction volume rose 10%, confirming a steady increase in end-user financing activity.

From January to October 2025, the city registered AED 148.1 billion ($40.4bn) in mortgage deals, a 19% rise in volume over the previous year, demonstrating that accessibility, not speculation, is driving today’s market.

High-income earners (AED 80,000+ per month) still represent 18% of mortgage cases but account for 35% of investment-led searches, with luxury apartments (63%) and villas (32%) remaining their top preferences.

This balance, between mid-income owner-occupiers and affluent investors, defines Dubai’s new dual-track property market, one that combines depth, diversification, and sustainability.

Market Outlook: Stable, Strategic, and Sustainable
Industry experts describe the market as stable and well-balanced, with the slight seasonal cooling offset by strong end-user and investor confidence.

“Dubai’s property market continues to show resilience and adaptability,” said Property Finder’s Chief Revenue Officer, Cherif Sleiman. “The rise in smaller-unit ownership and mortgage-backed purchases reflects a more sustainable, long-term trend, not a slowdown.”

For investors, this signals a market evolving toward stability over speculation, with smaller units delivering both strong rental yields and liquidity, while prime locations maintain capital appreciation potential.

Prestige Portfolios Insight
At Prestige Portfolios, we view this transition as a defining phase in Dubai’s property cycle.

The surge in mid-income ownership, combined with institutional-quality mortgage growth, points to a more mature, end-user-driven market, one that offers consistent returns and lower volatility.

As apartment demand continues to outpace villas, we expect affordable luxury and branded residences in well-connected districts such as Jumeirah Village Circle, Dubai Hills Estate, and Business Bay to lead absorption through 2026.

For investors, this moment represents an opportunity to align with Dubai’s demographic shift, owning where people truly want to live.

Prestige Portfolios

Smart investments. Exceptional living.
Licensed Dubai Real Estate Brokerage | Off-Plan, Off-Market & Branded Residences

Contact our advisory team for tailored insights on Dubai’s mid-income investment trends and upcoming launches.