Dubai Property Transactions Grow Bigger As Buyers Stretch Their Budgets
According to real estate industry executives, fence-sitters in the UAE and abroad who were waiting for the right opportunities are entering the market due to softening in prices and aggressive payment plans offered by the developers.
Recommended For YouA dip in prices in 2025, followed by further softening over the past few months amid regional tensions, has allowed buyers to stretch their spending power further.
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Yousuf Fakhruddin, CEO and managing partner of Fakhruddin Properties, said ticket sizes have climbed as new payment plans unlock budgets that were previously out of reach.
“A lot of brokers themselves are buying units too because the products are good and they want to put money in. This is the most innovative thing we are seeing now. Also, brokers know each and every segment of the market,” he said.
Fakhruddin added that activity has picked up well following an initial slowdown linked to the regional situation.
“People who were on the fence know that it's a good time to invest, but they wanted a push. They now believe it's time to invest because the offers currently available from developers are unlike anything we've seen before. It's the right time to buy,” he said, advising buyers to stick with legacy developers with a strong track record of delivering on time.
Rising tickets-sizeTauseef Khan, founder and chairman of Dugasta Properties, said mid-market buyers have raised their average spend from Dh600,000 to Dh950,000, with many now crossing the Dh1-2 million mark.
“The buyer preference has shifted from compact studio apartments to one-bedroom and larger configurations for higher yield potential. Indian investors make up the majority of the diaspora purchasing in Dubai's real estate market,” he said.
He added that the company's Garden Living project was designed with these evolving buyer and investor preferences in mind.
Dubai-based brokerage Betterhomes said in a recent note that a market in genuine distress would typically see prices soften alongside falling volumes – but Dubai Land Department (DLD) data for August showed the opposite.
“The average value per transaction across combined apartment and villa sales rose 7 per cent month-on-month, with average apartment prices up 4 per cent. Fewer buyers transacted, but those who did weren't negotiating discounts – they were paying to secure a specific product. Fewer deals at a higher average value point to a market being filtered for conviction rather than one being abandoned,” the note said.
“Dubai is increasingly behaving as a collection of distinct micro-markets rather than one market moving in a single direction,” said Richard Waind, CEO of Betterhomes.
“The headline numbers are softer, but there are still clear pockets of strength. What we're seeing is a more considered market, where buyers are scrutinising value more closely, and stronger properties continue to transact,” he added.
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