This nationality is buying the most property in Dubai

Dubai: British nationals were the top buyers of Dubai property ahead of Indian, Australian and Egyptian buyers, as international demand continues to support the emirate’s residential market despite tighter bank checks and a more selective lending environment.

The betterhomes data, covering March to April 2026, showed UK buyers in first place, followed by India, Australia and Egypt. The brokerage said transaction volumes were not disclosed and the rankings reflected its own data only.

The buyer mix points to sustained overseas demand for Dubai homes, with apartments driving the bulk of activity and mortgage enquiries rising since the start of the year.

Apartments drive most transactions

Apartments accounted for the majority of transactions tracked by betterhomes, with Dubai Marina leading by a clear margin. Jumeirah Village Circle, Jumeirah Lake Towers and Downtown Dubai were also among the most active locations.

Demand within the apartment segment was concentrated in one and two-bedroom units, suggesting a strong investor-leaning buyer profile. Smaller homes in established communities remain attractive for buyers seeking rental income, resale liquidity and entry into Dubai’s property market at a lower ticket size than villas.

The villa market was smaller by volume but skewed heavily towards five-bedroom homes, pointing to demand from buyers prioritising space, family use and long-term occupancy. Townhouse activity was more evenly spread, with newer master-planned communities including DAMAC Lagoons, Tilal Al Ghaf and Mohammed Bin Rashid City registering buyer interest.

Mortgage rates stay below 4%

Dubai’s mortgage market has remained active despite regional uncertainty. Betterhomes said mortgage enquiry volumes have risen since the start of 2026, with applicants arriving better prepared and with clearer expectations on rates and eligibility.

Major UAE banks are currently offering fixed residential mortgage rates of 3.75 per cent for one year, 3.78 per cent for two years and 3.95 per cent for three years. Fixed-rate products are leading buyer preference because they offer cost certainty while sitting below many variable-rate benchmarks.

The most competitive offers are being reserved for salaried UAE residents, especially those with stable employment records and clean documentation. Salary transfer to the lending bank can further improve pricing, but residency status and employment classification remain key drivers of the final offer.

“The fundamentals of Dubai's mortgage market are sound. Rates are attractive, LTV structures are clear, and banks are lending," said Adriaan Rossouw, Head of Mortgages at Lomond, betterhomes’ mortgage company. "What has changed is precision. Lenders are looking more carefully at who they are lending to and why. Buyers with clean documentation and accurate employment classification will find this market very accessible.”

Banks look closer at borrower profiles

Loan-to-value ratios remain in line with Central Bank guidelines. First-time buyers can borrow up to 80% on ready property, while investors and second-home buyers are typically capped at 60%. Off-plan purchases generally require a 50% deposit.

In practice, banks retain discretion to apply more conservative valuations depending on the property, location and applicant profile. Lenders are also paying closer attention to applicants working in aviation, hospitality, real estate and oil and gas, with some banks reducing the maximum LTV for buyers in those sectors.

Self-employed buyers can still access finance, but they face a higher documentation bar. Banks are asking for proof of business longevity, turnover, profitability and VAT returns. Betterhomes said one common reason for rejection is when self-employed applicants present themselves as salaried, since lenders verify employment status closely.

Dh1 trillion project pipeline builds in the background

The sustained flow of overseas buyers comes as Dubai prepares for another major development cycle, although that pipeline is a separate longer-term story for the market.

W Capital expects the total value of new real estate projects launched or developed in Dubai to exceed Dh1 trillion within the next five years, driven by population growth, foreign investment inflows and continued mega-project announcements by leading developers.

Walid Al Zarooni, CEO of W Capital Real Estate, said Emaar’s AED200 billion development in the heart of Dubai points to a new phase of urban and investment expansion, with future launches expected to include integrated cities, mixed-use districts, business centres and community-led projects.

The scale of upcoming supply will be important for buyers and investors to watch. JLL expects around 59,000 residential units across Abu Dhabi and Dubai for the remainder of 2026, followed by nearly 92,000 units in 2027, although delivery timelines could be affected by supply chain disruption.