Dubai’s real estate market defied signs of cooling in November, recording AED 64.4billion in sales—a substantial 49 per cent year-on-year (YoY) increase. The surge was primarily driven by an explosive performance in the primary market, alongside robust mortgage activity from middle-income earners.
According to new data from Property Finder, momentum accelerated significantly following a slower October, with capital inflows and activity levels far exceeding those of November 2024. While overall sales transaction volumes rose by 31 per cent, the disproportionate 49 per cent jump in value indicates higher average ticket sizes and sustained demand at the mid-to-upper end of the market.
Primary market leads the charge
The primary market was the clear driver of November’s growth, with sales values rocketing by 105 per cent YoY. This segment saw a 67 per cent rise in deal volume, reflecting strong appetite for both off-plan and ready properties.
Notably, the value of “ready primary” properties—completed units sold directly by developers—surged by 220 per cent YoY. Off-plan primary values also saw healthy growth of 72 per cent, suggesting robust investor confidence in upcoming projects. Emerging corridors such as Business Bay, Palm Deira, and Jabal Ali First continue to be focal points for these primary buyers.
In contrast, the secondary market showed resilience rather than explosive growth. While total secondary transaction value increased by 9 per cent YoY, volumes dipped slightly by 4 per cent. Ready units accounted for over 80 per cent of the total secondary transaction value, as buyers prioritized immediate occupancy or rental income.
Middle-income buyers drive mortgage demand
Fintech and financing trends within the sector highlight a shift in demographics. Data from Mortgage Finder reveals that the AED 20,000–40,000 monthly income group has become the largest segment, accounting for nearly 38 per cent of all mortgage requests in November—up from 30 per cent in October.
Within this middle-income bracket, 85 per cent of applicants are seeking properties to reside in, while 15 per cent are looking for investment opportunities. This demographic shows a strong preference for apartments, which remain the more affordable and available option for professionals and smaller families.
Overall, the mortgage market remained robust despite global financial tightening. November saw more than 4,400 transactions worth AED 8.03billion. While end-users continue to form the backbone of this demand, there is a growing trend of investors using financing to maximize yields in a rising rental market.
Cherif Sleiman, chief revenue officer at Property Finder, commented on the market’s rebound:
“October’s slight cooling down of the market was never going to be a reliable indicator of the overall health of the Dubai property market. As the healthy November figures show, buyers are back and they are keen to find great deals after the expected summer slowdown. The middle income earners are truly the backbone of the market, supporting a booming apartment segment.”
Shifting preferences: Apartments vs. Villas
Consumer search data indicates that rising rents are pushing tenants towards smaller units. In the rental market, the share of searches for studios and one-bedroom apartments has increased YoY, as singles and small families seek compact, budget-friendly options.
In the sales market, apartments accounted for 58 per cent of purchase searches. Conversely, the villa market is seeing a divergence based on income. Lower availability of villas has driven exclusivity; higher-income earners (AED 40k–60k) remain enthusiastic about villas, with 13.27 per cent of this group favoring houses over apartments. However, for the top income bracket (AED 80k+), villa popularity remains steady at around 10.2 per cent.