Dubai property sales rise 18% to $9.5 billion in October

Dubai's property market recorded an 18% increase in sales value in October, reaching 34.8 billion dirhams ($9.5 billion), as residential demand strengthened and transaction volumes recovered, Gulf News reported, citing an analysis of Dubai Land Department (DLD) data by Property Finder.

The number of property transactions rose 5% to 11,883, marking the first monthly increase after two consecutive months of decline.

Why did Dubai property sales increase in October?

The recovery was driven largely by stronger residential demand and increased buyer activity. Although transaction volumes remained below levels recorded earlier in the year, the October figures pointed to improving market activity.

The total sales value was almost unchanged from July's 34.9 billion dirhams, despite fewer transactions, indicating a rise in average deal values.

Which Dubai property segments led the growth?

Residential transactions increased 6% to 11,294, while their combined value rose 18% to 30.2 billion dirhams.

Commercial property transactions declined 4% to 589, but their total value increased 22% to 4.5 billion dirhams, suggesting that higher-value deals supported the segment.

Resale transactions climbed 13% to 5,304, marking a 37% increase from their May low. Their combined value rose to 18.1 billion dirhams from 15.8 billion dirhams in September.

Meanwhile, off-plan transactions remained broadly stable at 6,579, although their total value increased to 16.7 billion dirhams from 13.6 billion dirhams a month earlier.

How did Dubai's mortgage market perform in October?

The number of mortgages registered with the DLD rose 5.2% to 3,811, marking the third consecutive monthly increase.

However, the total value of mortgage transactions fell 24.7% to 7.32 billion dirhams, pointing to a shift towards smaller loans.

The average apartment mortgage declined to 1.77 million dirhams from 2.67 million dirhams in September. At the same time, the share of apartment purchases involving mortgages increased to 34.7%, compared with 31% in September and 26.7% in August.

Apartments accounted for 85.8% of all registered mortgages.

Villa sales reached 1,037, their highest level in four months. However, the share of villa purchases financed through mortgages dropped to 52.1% from 79.2% in September. The average villa mortgage increased to 2.87 million dirhams from 2.74 million dirhams.

Who is buying Dubai property with mortgages?

Middle-income buyers are accounting for a growing share of mortgage demand, according to Property Finder's Mortgage Finder platform.

Applicants earning between 20,000 and 59,999 dirhams a month represented 68.5% of mortgage applications in October, up from 55.7% in September.

The figures suggest that more buyers are seeking properties within their financial reach. Investors accounted for 12.8% of mortgage applications, with much of their interest also concentrated in the middle-income segments.

Cherif Sleiman, chief revenue officer at Property Finder, said the increase in mortgage registrations despite a decline in borrowing values was an encouraging sign.

He said changes in asking prices since February had made more properties accessible to buyers.

“More people are buying, with smaller loans, so the market is getting broader,” he said.

Is rental demand still strong in Dubai?

Rental demand remained strong in October, with tenants accounting for 73% of enquiries on Property Finder, up from 58% in February. Buyer enquiries increased to 27% from 24% in September.

Asking rents rose for a second consecutive month after reaching their lowest level of the year in August, while asking prices for properties listed for sale remained stable in October.

The combination of sustained rental demand, wider mortgage participation and rising residential transactions points to continued activity across Dubai's property market.

Sleiman said broader participation among buyers was important for the sector's long-term sustainability.

“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.