Dubai property sales jump 18% to Dh34.8 billion

Dubai: Dubai's real estate market recorded strong growth in October, with property sales value increasing 18 per cent to Dh34.8 billion as buyer activity and demand for residential properties strengthened.

The latest figures from the Dubai Land Department (DLD), analysed by Property Finder, show that the number of property transactions increased 5 per cent to 11,883. This marked the first monthly increase after two consecutive months of decline.

The growth reflects improving confidence among homebuyers and investors, with residential properties accounting for most transactions. Although sales volumes remain below the levels recorded earlier in the year, October's performance indicates renewed activity in Dubai's property market.

The total value of transactions reached Dh34.8 billion, almost matching July's Dh34.9 billion despite a lower number of deals, indicating an increase in average transaction values.

Residential Properties Drive Dubai Real Estate Growth

Residential properties continued to lead the market in October, with transactions increasing 6 per cent to 11,294. Their combined sales value also rose 18 per cent to Dh30.2 billion.

Commercial property transactions, meanwhile, declined 4 per cent to 589. However, their total value increased 22 per cent to Dh4.5 billion, reflecting stronger activity in higher-value commercial deals.

Resale properties were among the key contributors to market growth. Secondary market transactions increased 13 per cent to 5,304, representing a 37 per cent rise from their lowest level in May.

The value of resale transactions also increased to Dh18.1 billion in October, compared with Dh15.8 billion in September.

Off-plan properties continued to attract investor interest. Although the number of primary market transactions remained largely stable at 6,579, their combined value increased to Dh16.7 billion from Dh13.6 billion in September.

Dubai Mortgage Activity Increases for Third Consecutive Month

Mortgage activity also showed positive signs in October, particularly among apartment buyers.

The number of mortgages registered with the Dubai Land Department increased 5.2 per cent to 3,811, marking the third consecutive monthly rise.

However, the total value of registered mortgages declined 24.7 per cent to Dh7.32 billion, suggesting that more buyers were opting for smaller loans.

The average apartment mortgage value dropped to Dh1.77 million from Dh2.67 million in September.

At the same time, the share of apartment purchases involving mortgages increased to 34.7 per cent in October, compared with 31 per cent in September and 26.7 per cent in August.

Apartments accounted for 85.8 per cent of all registered mortgages.

Villa transactions also recorded growth, reaching 1,037 sales, the highest monthly figure in four months.

However, the proportion of villa purchases financed through mortgages declined to 52.1 per cent from 79.2 per cent in September. The average villa mortgage increased to Dh2.87 million from Dh2.74 million.

Middle-Income Buyers Increase Their Share of Mortgage Applications

One of the key trends in October was the growing participation of middle-income buyers in Dubai's property market.

According to Mortgage Finder, Property Finder's mortgage platform, applicants earning between Dh20,000 and Dh59,999 per month accounted for 68.5 per cent of mortgage applications in October, compared with 55.7 per cent in September.

The figures indicate that more buyers are exploring properties that fit within their budgets and borrowing capacity.

Cherif Sleiman, Chief Revenue Officer at Property Finder, said the increase in mortgage registrations despite the decline in overall mortgage value was an encouraging sign.

He explained that more people were entering the market with smaller loans, indicating broader participation among buyers.

Sleiman also noted that changes in asking prices since February had made more properties accessible to prospective buyers.

Investors accounted for 12.8 per cent of mortgage applications, with much of their interest concentrated in the same middle-income categories.

Dubai Rental Market Continues to Attract Demand

Dubai's rental market also maintained strong activity in October, with tenants accounting for 73 per cent of enquiries generated through Property Finder.

This was higher than the 58 per cent recorded in February, highlighting continued interest in rental properties across the emirate.

Meanwhile, the proportion of buyer enquiries increased to 27 per cent from 24 per cent in September.

Asking rents increased for the second consecutive month after reaching their lowest level of the year in August. In comparison, asking prices for properties listed for sale remained stable during October.

Dubai Property Market Shows Signs of Broader Recovery

October's figures indicate that Dubai's real estate market is attracting a wider range of buyers, supported by increasing residential transactions, stronger resale activity and greater mortgage participation.

Although transaction volumes remain below the levels recorded at the beginning of the year, the growing involvement of middle-income buyers suggests that market demand is becoming broader.

Sleiman said wider participation among buyers would support the long-term sustainability of Dubai's property sector.

The combination of steady rental demand, increasing mortgage registrations and stronger residential sales highlights the continued appeal of Dubai's real estate market among both investors and end-users.