Dubai’s housing market sees stronger demand in October as sales and mortgage registrations rise.
Dubai’s property market recorded a strong performance in October, with sales value rising 18 per cent to Dh34.8 billion as buyer activity picked up 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 rise following two consecutive months of decline.
The growth points to renewed activity among homebuyers and investors, with residential properties accounting for most transactions. While sales volumes remain below levels recorded earlier this year, October’s figures indicate improving buyer confidence and continued interest in Dubai’s real estate market.
The total value of transactions reached Dh34.8 billion, almost matching July’s Dh34.9 billion despite a lower number of deals, suggesting an increase in average transaction values.
Residential properties drive growth
Residential property transactions increased 6 per cent to 11,294 in October, while their combined value climbed 18 per cent to Dh30.2 billion.
Commercial property transactions, meanwhile, fell 4 per cent to 589. However, their total value rose 22 per cent to Dh4.5 billion, pointing to stronger activity in higher-value commercial deals.
Resale properties were among the key drivers of growth, with transactions increasing 13 per cent to 5,304. This represented a 37 per cent rise from the market’s May low.
The value of secondary market sales climbed to Dh18.1 billion, up from Dh15.8 billion in September.
Off-plan properties also continued to attract investors. While the number of primary market transactions remained broadly stable at 6,579, their combined value increased to Dh16.7 billion from Dh13.6 billion in September.
Mortgage activity gathers pace
Mortgage activity also showed signs of strengthening, particularly in the apartment segment.
The number of mortgages registered with the DLD rose 5.2 per cent to 3,811, marking the third consecutive monthly increase.
However, the total value of registered mortgages fell 24.7 per cent to Dh7.32 billion, suggesting that buyers were increasingly opting for smaller loans.
The average mortgage value for apartments declined to Dh1.77 million in October, compared with Dh2.67 million in September.
At the same time, mortgages accounted for a larger share of apartment purchases, rising to 34.7 per cent from 31 per cent in September and 26.7 per cent in August.
Apartments accounted for 85.8 per cent of all registered mortgages in October.
Villa transactions also increased, reaching 1,037 sales — the highest monthly total in four months.
However, the share of villa purchases financed through mortgages fell to 52.1 per cent from 79.2 per cent in September. The average mortgage value for villas rose to Dh2.87 million, compared with Dh2.74 million a month earlier.
Middle-income buyers drive mortgage demand
One of the key trends emerging from October’s figures is the growing participation of middle-income homebuyers.
According to Property Finder’s mortgage platform, Mortgage Finder, applicants earning between Dh20,000 and Dh59,999 a month accounted for 68.5 per cent of mortgage applications, up from 55.7 per cent in September.
The figures indicate that mortgage demand is increasingly being driven by buyers looking for properties within their budgets.
Cherif Sleiman, Chief Revenue Officer at Property Finder, said the increase in mortgage registrations despite a decline in the overall value of borrowing was an encouraging sign.
“Some will look at October’s 24.7% fall in mortgage value and see a weaker market. The more important number is that mortgages rose for a third month in a row. More people are buying, with smaller loans, so the market is getting broader,” he said.
Sleiman said adjustments in asking prices since February had made a wider range of properties more accessible to prospective buyers.
He added that investors accounted for 12.8 per cent of mortgage applications, with much of the demand concentrated in the same middle-income brackets.
Rental demand remains strong
Dubai’s rental market also continued to attract considerable interest. Tenants accounted for 73 per cent of enquiries generated through Property Finder in October, compared with 58 per cent in February.
The share of buyer enquiries increased to 27 per cent from 24 per cent in September.
Asking rents rose for the second consecutive month after hitting their lowest level of the year in August. Meanwhile, asking prices for properties listed for sale remained stable in October.
Sustained rental demand, increased mortgage participation and rising residential transactions point to a market supported by both end-users and investors.
Sleiman said broader participation among buyers was an important factor in ensuring the market’s long-term sustainability.
“Dubai’s recovery is being built from the middle. Volumes are still below the start of the year, so there is further to go, but a market with depth is a market that lasts,” he said.
