Dubai Home Sales Remain Firmly Fuelled By Cash Buyers

(MENAFN- The Arabian Post) Arabian Post Staff -Dubai

Dubai's residential real estate market is being largely sustained by liquidity-driven purchases, with more than half of sales in the latter half of 2025 settled in cash, according to a report by a leading market tracker.

Analysis from Elite Merit Real Estate indicates that approximately 54 per cent of all residential transactions during H2 2025 were cash-based, a pattern that market observers say is insulating the property sector from volatility as global financing costs shift. Such a high share of cash sales signals a preference among buyers for outright ownership over leveraged purchases, at a time when borrowing conditions abroad remain uncertain.

That preference for cash comes against a backdrop of softening global interest-rate pressures. Central banks across the US and Europe have begun to ease after an extended period of tightening, while domestically the Central Bank of the UAE lowered its base rate to 3.90 per cent in October 2025 after an earlier reduction in September. Leading UAE lenders are now offering home-loan interest rates in the 3.75–4.99 per cent range - a transition likely to encourage some uptake of mortgage financing, even as equity-rich investors continue to rely on cash.

Overall market performance this year underscores the resilience of Dubai's real estate sector. Through the first ten months of 2025, transaction volumes and values climbed significantly compared to 2024, buoyed by robust demand across both off-plan and ready properties. Analysts note that while off-plan developments remain a key growth engine, demand for completed homes - particularly in mid-market segments - continues to rise, reflecting a gradual shift towards long-term ownership rather than speculative flipping.

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In commentary provided alongside the report, Elite Merit's CEO, Elkhan Salikhov, emphasised that confidence, rather than leverage, is now driving investor momentum in Dubai. He pointed to the emirate's stable regulatory framework, its dollar peg, and streamlined property registration systems as factors that continue to attract institutional and HNW investors from Asia and Europe.

Market analysts say this cash-heavy dynamic is helping guard Dubai against unpredictable swings tied to global finance cycles. With less reliance on mortgages - and therefore lower debt exposure - the market appears structurally healthier than many global peers reliant on financing-driven growth.

Also published on Medium.

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