Dubai’s property market closed 2025 on a strong yet increasingly complex note, reflecting a year defined by rapid growth, market recalibration, and strategic shifts across all segments.

Strong population inflows, sustained investor demand, and attractive financing conditions supported transaction volumes, while a rising development pipeline introduced new supply considerations.

Residential sales, commercial activity, and rental performance each followed distinct trajectories, shaped by affordability pressures, mortgage trends, and evolving end-user preferences.

In this recap, we review how Dubai’s real estate sector performed throughout 2025, highlighting the key trends, challenges, and structural shifts that influenced the market significantly.

Residential Sales Overview 2025

Total Transaction Value

In 2025, Dubai’s residential market recorded approximately 209,600 transactions with a total value of AED 553.4 billion, highlighting a market characterized by strong capital depth rather than reliance on low-value, high-volume deals. Transaction value was concentrated beyond entry-level housing, with strong consolidation across mid and upper price segments.

This performance reflects sustained confidence from both end users and investors. The market’s ability to absorb this level of value indicates a structurally balanced ecosystem, where total transaction value, rather than deal count alone, is a key measure of market health.

• 142,947 primary transactions involving developer under-construction projects, valued at AED 364 billion.
• 17,647 secondary under-construction transactions, valued at AED 51.6 billion.
• 49,006 secondary ready-unit transactions, valued at AED 137.7 billion.

Year-On-Year Market Evolution

While global commentary has repeatedly questioned the sustainability of Dubai’s growth, actual population and housing market data continue to show a clear and sustained upward trajectory. The evidence supports long-term structural expansion rather than a market at the top of its cycle.

Population Growth

• Across multiple global and regional disruptions, population growth has remained consistently positive.
• Population expanded from 2.65 million in 2016 to 4.04 million in 2025
• Roughly 1.38 million net new residents added in less than ten years
• Population levels never contracted, including throughout 2020 to 2021
• Growth momentum strengthened after 2023:
  2024: increase of 191,300 residents
  2025: increase of 208,000 residents

Residential Transactions

• Residential transaction value rose from AED 60.3 billion in 2016 to AED 553.4 billion in 2025.
• This represents roughly 7.7 times expansion in transaction value, compared with 1.5 times population growth.

This divergence highlights a deeper capital base entering the market, increasing average transaction sizes and elevated confidence from domestic and international investors.

Dubai’s residential sector is not showing signs of exhaustion. Instead, it is moving into a stage where growth builds upon itself. With population expansion continuing steadily and investment volumes increasing at a much faster rate, the foundations for sustained demand and long-term value creation remain firmly in place.

Top 5 Developer Share of Dubai Residential Transaction Value (2025)

• Residential transaction value in 2025 was highly concentrated, with the top five developers accounting for 46.8% of total market value out of 485 developers, indicating a market led by a limited number of dominant players rather than widespread fragmentation.
• Emaar played a central role, representing 45.9% of transaction value within the top five groups, giving it significant influence over liquidity conditions, pricing confidence, and overall buyer sentiment.
• Pricing power is unevenly distributed, as the sharp decline in share beyond the leading developer shows that demand and absorption are primarily directed toward established and trusted developer platforms.
• Market momentum in 2025 was conviction-led, driven by strong brand credibility and high-confidence capital flows rather than low-ticket or volume-focused activity.

2025 Transaction Value: Apartment Vs Villas

Apartments Price-Based Segmentation

• Demand was centered in the AED 1 million to AED 5 million range, where the mid-market and upper mid-market segments generated approximately AED 214 billion, accounting for 64% of total apartment transaction value.
• The sub-AED 1 million segment contributed about AED 38 billion, (11.5%), serving as a secondary layer of activity rather than the primary driver of the market.
• At the upper end, homes priced above AED 5 million produced roughly AED 81 billion, (24%), reflecting selective participation supported by buyer confidence, with lower transaction intensity than the core price bands.

Villas Price-Based Segmentation

• Homes priced below AED 2 million represented only around 2.4% of total villa value, confirming that entry-level villa ownership was largely absent in 2025.
• The AED 2 million to AED 5 million bracket emerged as the effective point of entry, contributing approximately 31% of total transaction value, driven primarily by end-users upgrading for space, privacy, and long-term stability.
• Properties priced above AED 5 million accounted for approximately 66.6% of villa transaction value, underscoring a market defined by capital depth rather than broad affordability.
• Ultra-luxury villas above AED 12 million formed the largest single value segment at roughly 41.8%, supported by scarcity, branded communities, and wealth preservation demand.

Key takeaway: Dubai’s villa market in 2025 was clearly led by luxury segments, with transaction value concentrated at the top end and affordability largely removed from the demand equation.

2024 Vs 2025 Market Performance

Overall market activity strengthened, with total transactions increasing by 20.0% YoY to 209,600, reflecting a clear acceleration in participation rather than a stagnant market.

• Total transaction value rose by 26.8% to AED 553.4 billion, outpacing volume growth and indicating that higher-value deals played a growing role alongside increased transaction counts.
• Average prices continued to rise, with the price per sqft reaching AED 1,936, representing a 9.7% YoY increase and confirming that price appreciation materially contributed to overall value growth.
• Off-plan sales dominated market momentum, expanding by 25.5% YoY, reinforcing the role of new project launches as the main driver of buyer confidence and activity.
• The ready property segment recorded more modest growth, with transactions increasing by 4.8%, trailing off-plan performance but still pointing to stable resale and end-user demand.

Key Inferences Of Residential Sales Overview

• 2025 activity was driven by value rather than speculation, with AED 553.4 billion transacted across 209,600 deals, reflecting deep capital participation and sustained demand rather than low-value turnover.
• Capital growth has materially outpaced demographic growth, as transaction value expanded by approximately 7.7 times since 2016, compared with about 1.5 times population growth, indicating structurally higher ticket sizes and stronger buyer conviction.
• Off-plan sales continued to lead the market cycle, anchoring liquidity, absorption, and forward supply visibility throughout the year, with momentum strengthening from Q2 2025 onward.
• Market value became increasingly concentrated, with the top five developers accounting for around 46.8% of total transaction value, supported by Emaar’s role as the largest single contributor shaping pricing and market confidence.
• Apartment demand was firmly centered in the AED 1 million to AED 5 million range, which generated roughly 64% of total apartment transaction value, while sub-AED 1 million units supported volume but contributed limited value.
• The villa segment was decisively capital-led, with approximately 67% of value above AED 5 million and around 42% from AED 12 million plus homes, confirming that affordability has largely exited the market and demand is concentrated at the upper end.

Rental Market Overview 2025

In 2025, Dubai’s rental market operated at a high-value equilibrium, supported by sustained tenant demand, strong renewal activity, and continued upward pressure on rents. Growth remained value-led, with rising rents accompanying higher contract volumes.

Total active rental contracts reached 731,936, up from 646,329 in 2024, representing a 13.3% YoY increase. Rental value grew faster, rising to AED 66.9 billion, a 24.9% YoY increase, reflecting continued landlord pricing power and income resilience.

Renewals generated AED 35.3 billion, up 19.1% YoY, indicating tenants’ willingness to absorb higher rents. New contracts contributed AED 31.6 billion, increasing 31.9% YoY, confirming that fresh demand remained active despite higher entry pricing.

Pricing momentum stayed strong. Average renewal rents rose to AED 79,555, up 7.1% YoY, while average rents on new leases increased to AED 109,913, a 13.2% YoY rise, widening the affordability gap for new entrants while supporting landlord returns.

Rental Price-Based Segmentation

• Lower-priced rentals anchor volumes, with sub-AED 100K contracts forming the largest share of activity, driven by necessity-based demand but contributing a smaller portion of total rental value.
• The AED 100K–150K and AED 150K–300K segments drive value, generating a disproportionately high share of rental income relative to volumes and reflecting strong pricing power.
• Upper-mid rentals between AED 150K–300K outperform on value, despite fewer contracts, supported by long-term residents upgrading rather than short-term or transient demand.
• Luxury rentals above AED 300K remain selective yet resilient, contributing meaningfully to rental value despite limited contract volumes.

Rental Pricing by Bedroom Configuration

• Pricing power increases materially from 3BR onward, highlighting demand for space, scarcity, and lifestyle upgrades rather than entry-level affordability.
• Studios and 1BR units remain highly competitive, with narrow gaps between renewals and new leases, reflecting supply sensitivity and limited repricing headroom.
• 2BR and 3BR homes form the core pricing engine, where strong end-user demand supports clear step-ups on new leases versus renewals.
• Large homes of 4BR and above operate in a scarcity-driven tier, with new lease rents materially above renewals due to limited stock and low tenant turnover.

Commercial Rental Segmentation

• Retail drives rental value, generating AED 12.76 billion despite fewer leases than offices, reflecting strong pricing power in prime retail locations.
• Offices anchor leasing volumes, with 146.7K leases, but deliver softer rental value and pricing, pointing to a tenant-selective and supply-heavy market.
• Warehouses remain small but premium, contributing around 9% of total rental value while achieving the highest average and new rents, supported by logistics and e-commerce demand.
• New leasing activity is concentrated in offices, with nearly two-thirds of office leases being new, while retail and warehouse assets show higher renewal and occupancy stability.

2024 Vs 2025 Market Performance

Rental market growth accelerated between 2024 and 2025, with total contracts increasing 13.2% YoY while total rental value rose 24.8% YoY, confirming that expansion was driven primarily by pricing rather than volume.

• New leases emerged as the main source of growth, with new contract value rising 31.9% YoY, demonstrating that fresh demand continued to absorb higher entry rents despite rising affordability pressure.
• Renewals remained healthy, with renewal value increasing 19.1% YoY, supported by strong tenant retention and continued landlord pricing leverage, though growth trailed that of new leasing activity.
• Rental inflation was more pronounced for new tenants. Average rents on new contracts rose 13.2%, compared with a 7.1% increase for renewals, widening the cost gap between entering and existing tenants.

Overall landlord income fundamentals remained strong. Broad-based gains in average rents and total rental value point to sustained income resilience, even as growth increasingly concentrates in higher-priced new leases.

Key Inferences Of Rental Market Overview

• The rental market is value-led, with contract volumes up 13.3% YoY while total rental value increased 24.9% YoY, confirming pricing power as the main performance driver.
• Landlord income fundamentals remain strong, supported by broad-based rent increases across both renewals and new leases.
• New leases are driving growth, as new contract value rose 31.9% YoY, outpacing renewals despite rising affordability pressure.
• Market stability is anchored in the mid-market, with rentals between AED 50K–300K and 2BR–3BR homes generating a disproportionate share of value.
• Affordability pressure is concentrated on new entrants, with new lease rents up 13.2% YoY versus 7.1% for renewals, widening the cost gap.
• Premium rental segments add depth without excess, as luxury and ultra-luxury homes contribute meaningfully to value while remaining selective.

Commercial Sales Overview 2025

Total Transaction Value

In 2025, Dubai’s commercial real estate market recorded approximately 6,146 transactions year to date, with a total value of around AED 18 billion. Activity remained selective and income-focused, with market performance shaped more by asset quality, pricing stability, and immediate usability than by transaction volumes. Value was primarily concentrated in ready and income-producing assets.

This outcome reflects continued confidence from both occupiers and investors, underpinned by stable occupancy levels and sustained demand for operational commercial space. The market’s ability to maintain value growth despite lower deal counts points to a more mature commercial environment, where pricing strength and transaction value outweigh deal velocity.

• 2,541 primary transactions involving developer under-construction assets, valued at AED 8.7 billion.
• 217 secondary under-construction transactions, valued at AED 610 million.
• 3,388 secondary ready-unit transactions, valued at AED 8.6 billion.

Year-On-Year Market Evolution

• 2016 to 2020: Commercial transaction values remained below AED 5 billion annually, reflecting a prolonged consolidation phase marked by cautious sentiment, limited liquidity, and restrained capital deployment.
• 2021: Transaction value more than doubled year on year, signalling a clear recovery phase supported by improving economic visibility and renewed investor confidence in commercial assets.
• 2022 to 2023: The market entered a sustained expansion phase, driven by higher primary activity and growing demand for stabilised, income-generating commercial properties.
• 2024: Transaction value reached AED 9.54 billion, confirming the shift toward a higher-liquidity market with broader participation and deeper capital pools.
• 2025: Transaction value climbed to AED 18.06 billion, nearly doubling the prior year and underscoring a structurally stronger commercial market supported by sustained capital inflows and rising institutional conviction.

Top 5 Developers Share of Dubai Commercial Transaction Value

Commercial transaction value in Dubai remains meaningfully concentrated without being overly consolidated. The top five developers account for approximately 36% of total commercial transaction value, indicating that capital is being directed toward a defined group of credible and execution-proven players, while still allowing for competitive depth across the wider market.

• Leadership within the commercial sector is evident but balanced. Omniyat leads with around 10% share, equivalent to AED 1.76 billion, yet no single developer commands a dominant position.
• The close grouping of Binghatti, Royal Centurion, and Emaar in the 7-8% range highlights a market where scale and share are earned through delivery performance rather than brand strength alone.
• Primary transactions continue to play a central role in value creation. Developers such as Omniyat, Royal Centurion, and Binghatti generate a substantial portion of their commercial transaction value from primary sales, underscoring sustained confidence in new commercial launches and development-led demand rather than reliance on resale activity.
• At the same time, stabilised commercial assets remain a strong draw for capital. Emaar Properties and Dubai Properties show a greater weighting toward secondary-ready transactions, reinforcing investor preference for income-producing assets with established leasing profiles, clearer yield visibility, and lower execution risk.

Overall, commercial buying behaviour is strategy-driven rather than speculative. The split between primary-focused developers and those concentrated on ready assets reflects purposeful capital allocation, either targeting development upside or prioritising income stability, pointing to a maturing and increasingly disciplined commercial investment market.

Price-based Segmentation

• The AED 2–5M segment anchors market liquidity, accounting for 31.4% (AED 5.96 billion) of total commercial transaction value and forming the primary execution band for investors and end-users.
• Mid-market pricing between AED 1–5M underpins resilience, representing approximately 54% of total transaction value, supported by sustained demand from SMEs, owner-occupiers, and mid-sized investors.
• Entry-level commercial activity remains marginal, with transactions below AED 1M contributing 4.6% of total value, reinforcing that market participation is driven by functional and investment-led demand rather than affordability.
• Assets priced between AED 5–12M reflect confidence-led expansion, generating 21.9% (AED 4.14 billion) of total transaction value as businesses and investors scale operations and upgrade asset quality.
• Large-ticket transactions above AED 20M signal institutional depth, contributing 12.7% of total transaction value, aligned with long-term strategic capital targeting high-quality commercial assets.

2024 Vs 2025 Market Performance

Commercial market growth accelerated sharply between 2024 and 2025, with transaction volumes increasing by 42.3% YoY while total transaction value surged by 89.3% YoY. This divergence confirms that expansion was driven primarily by larger deal sizes and higher asset values rather than activity alone.

Pricing power strengthened materially over the year, as the average price per sqft rose by 29.1% YoY. This increase reflects sustained demand for well-located, higher-quality commercial assets and growing confidence among sellers.

Off-plan activity emerged as the dominant growth engine, with off-plan transaction value jumping 161.0% YoY. This surge highlights a strong shift toward development-led opportunities and future-yield strategies among investors.

Ready assets continued to perform solidly, with ready transaction value increasing by 46.1% YoY. While this growth trails the pace of off-plan expansion, it confirms ongoing demand for income-generating commercial stock and reinforces the segment’s role as a source of stability rather than acceleration.

Key Inferences of Commercial Transaction Value

• Commercial activity is value-led, with 6,146 transactions generating AED 18.06 billion, driven by asset quality and pricing power rather than deal volume.
• Ready commercial stock remains a core capital anchor, with secondary-ready transactions contributing approximately AED 8.7 billion in value.
• Off-plan demand reflects forward confidence, as primary and under-construction transactions generated around AED 9.3 billion, supported by long-term yield expectations.
• Developer leadership is concentrated but competitive, with the top five developers accounting for about 36% of total transaction value.
• The AED 2–5M segment forms the liquidity backbone, contributing roughly 31% of total commercial transaction value.
• Growth is driven by repricing rather than volume, with transaction value up 89.3% YoY versus 42.3% growth in deal count, supported by a 29.1% YoY increase in average price per sq ft.

Dubai Inventory Overview 2025

Dubai’s inventory story in 2025 diverged sharply from the oversupply headlines that dominated commentary.

The Oversupply Narrative vs. Execution Reality

The narrative of a massive 90,000-unit oversupply in 2025 collapsed under inspection, as headline figures often confuse speculative intent with actual construction execution. True residential deliveries were nearly 50% lower than initial fears.

• Total Residential Deliveries (2025): 44,457 units.
• Apartments: 31,762 units.
• Villas: 9,851 units.
• Serviced Apartments: 2,844 units.

Year-On-Year Market Evolution

The following timeline details the structural growth of Dubai’s residential supply, highlighting the market's transition from cautious recovery to disciplined expansion:

• 2016 to 2019: Residential completions remained relatively low, scaling from 13,000 units to roughly 28,800 units by 2019. This period reflected a deliberate expansion phase as the market exited its post-correction through measured growth rather than speculative excess.
• 2020-2021: Completions held steady at 30,000-31,000 units, signalling a phase of execution discipline despite significant global pandemic disruptions. This underscored developers' ability to pace handovers effectively to protect market absorption rather than forcing volume into a period of uncertainty.
• 2022 to 2023: The market entered a sustained acceleration phase, with units rising from 33,000 in 2022 to a cycle peak of 38,000 in 2023. While this marked the strongest delivery window of the cycle, supply remained spread over time rather than compressed into a destabilising surge.
• 2024: Deliveries saw a built-in self-correction, retracing to 29,400 units despite a heavy pipeline narrative in the media. This pivotal shift confirmed that planned supply does not automatically translate into completions, reaffirming the market's underlying execution discipline.
• 2025: Total handovers reached a new cycle high of 44,457 units, nearly doubling the prior year's retracement and underscoring a structurally stronger market.

Population Growth vs Housing Supply

Dubai’s population growth has consistently outpaced housing supply, preventing the formation of a structural oversupply. Between 2016 and 2018, the city added between 200,000 and 275,000 residents annually while deliveries remained below 16,000 homes.

Even as deliveries rose to 28,800 units in 2019, the city absorbed 175,000 new people, narrowing the gap without ever crossing it. During the 2020–2022 period, execution stayed rational and demand-aligned with completions holding steady at roughly 30,000 to 33,000 units per year.

The trend reached a notable extreme in 2024 when population growth jumped to 191,000 residents while deliveries actually fell to 29,400 units. This trend continued into 2025, where 208,000 people were added against 44,500 delivered homes, proving that people are still arriving faster than homes can be built.

Top 5 Developers by Residential Supply

Residential supply in Dubai remains meaningfully concentrated without being overly consolidated. The top five developers account for approximately 37% of total 2025 supply, indicating that capital and delivery are being directed toward a defined group of credible and execution-proven players, while still allowing for competitive depth across the wider market.

• Leadership within the residential sector is evident but balanced. Emaar Properties PJSC leads with a 13.8% share, equivalent to 6,137 units, yet no single developer commands a dominant position that could distort market stability.
• The close grouping of Binghatti Holding Ltd (4,113 units), Azizi Developments (2,229 units), and Danube Properties (1,992 units) highlights a market where scale and share are earned through consistent delivery performance.
• Mid-tier developers continue to play a central role as the market's execution backbone. Together, Binghatti, Azizi, Danube, and Sobha Real Estate deliver approximately 23% of total supply, reflecting repeatable, phased execution instead of speculative volume surges.
• At the same time, the broader market remains highly diversified. With nearly two-thirds of supply distributed across the wider developer base, the market avoids "winner-takes-all" risks and supports long-term pricing confidence through competitive breadth.

Top 5 Communities by Residential Supply

Residential supply in Dubai is characterized by strategic clustering in high-growth corridors rather than a fragmented city-wide spread. The top five communities represent approximately 41% of all 2025 handovers, showcasing a market where development is focused on infrastructure-ready hubs capable of absorbing large-scale residency.

• Jumeirah Village Circle (JVC) continues to serve as the city’s primary residential engine, delivering 7,635 units—a dominant 17% share. This high volume reflects its role as the preferred destination for the mid-market segment, providing essential inventory that prevents price overheating in the secondary market.
• The grouping of Sobha Hartland (2,020 units), Dubai Marina (3,039 units), and Business Bay (2,149 units)** highlights a balanced distribution between emerging suburban hubs and established prime districts. This forms 16% of total supply.
• Arjan has solidified its position as a major contributor to the luxury-mid-market crossover, adding 3,325 to the 2025 tally. The consistent delivery in this community underscores the successful execution of large-scale master-planned visions by private developers.
• Despite the volume in these top areas, the market maintains significant geographic depth. With roughly 60% of new homes spread across dozens of other neighborhoods, the risk of a "supply glut" in any single micro-market—outside of the intentionally high-density JVC—remains exceptionally low.

Residential Supply Segmentation

The 2025 supply mix is characterized by a clean, non-overlapping segmentation between high-density urban living and family-oriented communities.

Apartment Based Segmentation

• A "Small-Unit Machine": Apartment inventory is heavily weighted toward smaller configurations, with Studios, 1BR, and 2BR units totaling 29,121 homes, or 91.7% of the entire apartment supply.
• 1-Bedroom Dominance: This configuration is the largest single segment of the market, accounting for 14,979 units.
• High-Turnover Focus: The apartment pipeline is designed as demand-first inventory, primarily renter-led and investor-friendly, to cater to the city's mobile professional population.
• Limited Large Units: Only a small fraction of the apartment supply caters to larger families, with just 1,998 3-bedroom units and 285 4-bedroom units delivered.

Villa Based Segmentation

• End-User Driven: In direct contrast to apartments, villa supply starts where apartments end, focusing on space, privacy, and family upgrading.
• 3-Bedroom Core: This configuration serves as the primary villa entry point, with 3,809 units delivered, representing 38.7% of the total villa supply.
• Family-Centric Scale: Large family homes (3-5 bedrooms) dominate this segment, totaling 7,664 units or 77.8% of all villas.
• Executive Inventory: The market saw a focused delivery of 3,136 4-bedroom villas and 719 5-bedroom villas, reinforcing the premium nature of horizontal living.

Key Inferences of Dubai Inventory Overview 2025

• The projected "90,000-unit wave" was debunked by actual data, with only 44,457 units reaching completion, a ~50% gap caused by over-reporting of unverified projects.
• Housing delivery continues to trail population growth; Dubai added ~208,000 residents in 2025 compared to just ~44,500 new homes.
• The market is not reliant on a few players; the top 5 developers account for only ~37% of supply, ensuring a healthy and competitive landscape.
• Supply is purposefully funneled into "absorption engines" like JVC (17% share), while 60% of the city remains shielded from concentrated delivery pressure.
• High-density apartments focus on the 0–2BR range, while villas cater to the 3BR+ family market, preventing direct competition between the two asset classes.
• The stable mix of ~69% apartments and ~31% villas indicates a disciplined development environment that avoids erratic shifts toward high-risk inventory.

Mortgage Market Overview 2025

In 2025, Dubai’s mortgage market operated at an unprecedented scale, supported by strong real estate activity and deeper capital deployment across the sector. Total property transactions reached 209,600, while aggregate transaction value climbed to AED 553.4 billion, reinforcing overall market liquidity and resilience.

Mortgage-backed transactions remained relatively limited. Only 24,069 transactions were financed through mortgages, generating a total mortgage value of AED 43.9 billion. This equates to 7.9% of total property sales by value, a proportion that remained broadly unchanged from 2024.

Despite record levels of transaction activity, mortgage penetration stayed low at around 8%, indicating that a significant portion of demand continues to be met through cash purchases rather than formal financing. This points to underutilisation of mortgage products rather than weak buyer appetite.

As the market increasingly shifts toward higher-value, longer-hold, and end-user-oriented purchases, financing adoption has yet to fully reflect this maturity. Cash transactions continue to dominate, even in segments where mortgage usage would typically be more prevalent.

This gap highlights clear expansion potential within the mortgage market. Greater integration of mortgage financing could support sustainable growth, enhancing market depth without relying on higher transaction volumes or further price inflation.

Mortgage Market and Scale Evolution Year On Year

Key Insights

• Mortgage penetration has remained structurally constrained, holding between ~7.0% and ~9.6% over the past five years, despite more than 3x growth in mortgage market value and a sharp expansion in overall residential activity.
• Peak penetration proved cyclical rather than structural, rising to 9.6% in 2021, compressing to 7.0% in 2023, and recovering only modestly to 7.9% in 2025.
• Even in peak growth conditions, adoption remained limited, with penetration reaching just 8.3% in 2024, confirming that growth was driven by higher transaction volumes and values rather than deeper financing usage.
• A clear structural gap remains, as mortgage growth continues to lag market maturity, leaving significant untapped headroom in segments where leverage would typically be standard in more developed real estate markets.

Mortgage Split By Property Type

Key Insights:

• Villas show the highest mortgage reliance, with AED 23.0 billion in mortgaged value and 11% penetration, reflecting their alignment with end-user and long-term ownership demand.
• Apartments present the largest financing gap, generating AED 332.4 billion in transaction value but showing only 6% mortgage penetration, particularly within mid-market segments where leverage would typically be higher.
• Serviced and hotel apartments remain largely cash-driven, with mortgage usage limited to 6%, consistent with their investor-led ownership profile.

Price-based Segmentation

Key Insights:

• Mortgage activity is concentrated in the AED 2–5M segment, generating AED 19.2 billion in mortgage value and serving as the primary zone where leverage is most actively applied.
• Mortgage usage declines beyond AED 5M, indicating a shift from financing-led purchases to capital-driven buying as pricing moves into higher-value territory.
• Ultra-luxury properties above AED 12M sit largely outside the mortgage system, with buyers favoring equity deployment and balance-sheet flexibility over leverage.

Key Inferences Of The Mortgage Market Overview

• Mortgage market growth has outpaced adoption, with value reaching AED 43.9 billion in 2025 while penetration remains structurally capped at ~8% of total property value.

• Recent mortgage expansion has been momentum-led, as penetration improved only marginally to 7.9% in 2025, driven by higher transaction values rather than broader financing uptake.

• The AED 2–5M segment is the core mortgage engine, contributing AED 19.2 billion** in mortgage value and combining affordability with end-user**-led demand.

• Mortgage usage declines sharply above AED 5M, signalling a shift toward capital-led purchasing in luxury and ultra-luxury segments.

• Apartments offer the largest untapped financing opportunity, with AED 332.4 billion in transaction value but only 6% mortgage penetration, most notably in the mid-market.

• Villas deliver mortgage depth rather than volume, recording 11% penetration and AED 23.0 billion in mortgaged value, aligned with long-term, end-user ownership profiles.

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