Dubai property sales jump 18% to Dh34.8 billion

Dubai: Dubai’s property market recorded a strong performance in October, with sales value jumping 18 per cent to Dh34.8 billion as more buyers entered the market 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 by 5 per cent to 11,883, marking the first monthly rise after two consecutive months of decline.

The increase reflects renewed activity among homebuyers and investors, with residential properties accounting for the bulk of transactions. Although sales volumes remain below the levels recorded earlier this year, October’s performance points to improving buyer confidence and sustained interest in Dubai’s real estate sector.

The total value of transactions reached Dh34.8 billion, almost matching July’s Dh34.9 billion despite fewer deals, indicating higher average transaction values.

Residential property transactions rose 6 per cent to 11,294 in October, while their combined value increased 18 per cent to Dh30.2 billion.

Commercial property transactions declined 4 per cent to 589, but their total value increased 22 per cent to Dh4.5 billion, reflecting stronger activity in higher-value commercial deals.

Resale properties emerged as a major driver of growth, with transactions climbing 13 per cent to 5,304, representing a 37 per cent increase from their May low.

The value of secondary market sales increased to Dh18.1 billion from Dh15.8 billion in September.

Meanwhile, off-plan properties continued to attract investment. Although the number of primary market transactions remained largely unchanged at 6,579, their combined value rose to Dh16.7 billion from Dh13.6 billion in September.

Mortgage activity also showed encouraging signs, particularly among apartment buyers.

The number of mortgages registered with the Dubai Land Department increased 5.2 per cent to 3,811, marking the third consecutive monthly rise.

However, the total value of mortgages declined 24.7 per cent to Dh7.32 billion, suggesting a shift towards smaller loans.

The average apartment mortgage declined to Dh1.77 million from Dh2.67 million in September.

At the same time, the proportion of apartment purchases involving mortgages increased to 34.7 per cent, compared with 31 per cent in September and 26.7 per cent in August.

Apartments now account for 85.8 per cent of all registered mortgages.

Villa transactions also recorded growth, reaching 1,037 sales, the highest level in four months.

However, the proportion of villa purchases financed through mortgages declined to 52.1 per cent from 79.2 per cent in September. The average villa mortgage increased to Dh2.87 million from Dh2.74 million.

Middle-income buyers

One of the most significant 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 suggest that mortgage demand is increasingly concentrated among buyers seeking properties within their financial reach.

Cherif Sleiman, Chief Revenue Officer at Property Finder, said the rise in mortgage registrations despite a decline in total borrowing value was an encouraging development.

“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 changes in asking prices since February had helped make more properties accessible to prospective buyers.

He added that investors accounted for 12.8 per cent of mortgage applications, with much of the interest concentrated in the same middle-income categories.

Rental demand

Dubai’s rental market also continued to attract significant interest, with tenants accounting for 73 per cent of enquiries generated through Property Finder in October, compared with 58 per cent in February.

The proportion of buyer enquiries increased to 27 per cent from 24 per cent in September.

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

The combination of sustained rental demand, greater mortgage participation and rising residential transactions points to a property market supported by both end-users and investors.

Sleiman said the broader participation of buyers was important for 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.