Mid‐income buyers and smaller homes now dominate Dubai’s market, key for investors and first-time owners alike.
Dubai Real Estate: Mid-Income Buyers Fuel the Growth
The latest data from Property Finder reveal a dynamic shift in the Dubai property landscape. As the market continues to show resilience, it is not just luxury buyers creating momentum – rather, mid-income buyers are increasingly taking the lead.
Key Market Indicators
In October 2025, Dubai’s mortgage market recorded approximately AED 15.98 billion across about 3,999 transactions. While value dipped slightly year-on-year (-1%), transaction volume rose by 10 %, indicating strong end-user demand.
More striking: the average mortgage value fell by 16 % to about AED 4.17 million, signalling a shift toward more affordable properties.
Mid-Income Buyers in Focus
Buyers earning AED 20,000–40,000 per month now represent nearly 30 % of all mortgage requests — the single largest income segment.
Within this group, approximately 81% are purchasing to live in (owner-occupiers), with the remaining 16% targeting investment properties.
Importantly, 88 % of these mid-income buyers are opting for apartments.
Luxury vs Mid-Income: A Two-Track Market
High-income earners (AED 80,000+ per month) account for around 18 % of mortgage cases — but they represent 35 % of investment-related searches and favour villas (32 %) and luxury apartments (63 %).
This dual-track model reveals a mature market: one track driven by affordability and owner-occupiers, the other by investment property and luxury.
Property Type & Size Trends
Overall purchase interest shows apartments accounting for 57 % of buyer enquiries and 78 % of rental searches.
In terms of size: studios make up 15 % of purchase interest (though 25 % of rentals), while one-bedrooms attract 36 % of buyer interest. The trend is clearly tilting toward smaller, more affordable units.
The data indicates buyers are proactively responding to rising rents and using ownership of smaller units as a hedge.
Why This Matters for Investors & Buyers
- For owner-occupiers: The rise of mid-income buyers and smaller homes signals opportunity in the “entry-level” ownership segment — especially apartments in well-connected communities.
- For investors: Smaller-unit demand suggests rental yields may remain robust; pre-launch and affordable stock may offer good value.
- For luxury markets: Though investment-driven, luxury remains a viable track — but investors should remain aware of supply and buyer-profile shifts.
- Regulator role: The Dubai Land Department (DLD) plays a central role in monitoring and regulating the market, improving transparency and supporting buyers.
Top Developers to Watch
When choosing your property partner, be informed. Leading developers shaping Dubai’s skyline include:
- Emaar Properties — major player delivering mega-projects and strong sales volume.
- DAMAC Properties — known for luxury and lifestyle-branded residences.
- Sobha Realty — premium quality and design-driven developments.
Working with reputed developers and monitoring DLD data helps to align your investment or purchase decision with the market trends we’ve seen.
Dubai’s property market is no longer just about high-net-worth buyers chasing luxury. The ascent of mid-income owner-occupiers and demand for smaller-ticket homes is redefining the landscape. Whether you’re investing or buying to live, aligning with this demand-driven trend positions you well for sustainable value.
Explore our latest off-plan opportunities here.
