The Dubai property market continues to display robust growth, fueled by sustained demand from international buyers. The shift towards apartment purchases indicates a thriving interest, driven largely by inquiries related to mortgages, which have seen an upward trend since the beginning of the year.

Apartments Lead in Transactions

Apartments have emerged as the primary focus of real estate transactions in Dubai, with the Dubai Marina standing out as the most sought-after area. Other high-demand locations include Jumeirah Village Circle, Jumeirah Lake Towers, and Downtown Dubai. The preferences demonstrate a clear inclination towards one and two-bedroom units, appealing particularly to investors. Smaller residences in well-established neighborhoods provide an attractive entry point for buyers interested in generating rental income, ensuring liquidity for resale, and entering Dubai’s real estate market without the high costs associated with villas.

In contrast, although the villa market experiences lower transaction volumes, it is significantly influenced by demand for five-bedroom properties. Buyers in this segment are often looking for spacious homes suitable for family life or long-term occupancy. The interest in townhouses is more evenly distributed, particularly towards newer master-planned developments like DAMAC Lagoons, Tilal Al Ghaf, and Mohammed Bin Rashid City, which continue to attract buyer attention.

Mortgage Rates Below 4% Drive Demand

Despite existing regional economic uncertainties, Dubai’s mortgage market remains vibrant. Since the start of 2026, mortgage inquiries have increased, with potential borrowers arriving better prepared. Key UAE banks are currently offering attractive fixed-rate mortgages, such as 3.75% for one year, 3.78% for two years, and 3.95% for three years. These fixed-rate options are particularly appealing due to the cost certainty they offer, especially compared to fluctuating variable rates.

The best mortgage deals are often available to salaried individuals in the UAE, particularly those with solid employment histories and proper documentation. Transferring a salary to the lending institution can enhance the deals further. However, factors like residency status and job classification heavily influence the final mortgage terms. Adriaan Rossouw, Head of Mortgages at Lomond, notes that while the fundamentals of the mortgage market are stable and competitive, lenders are increasingly meticulous about who they lend to, ensuring buyers are well-prepared and qualified.

Insight into Borrower Profiles

Current loan-to-value ratios align with the Central Bank’s guidelines, allowing first-time buyers to borrow up to 80% on ready properties, while investors and those purchasing second homes are capped at 60%. For off-plan purchases, a 50% deposit is usually required. However, banks maintain the discretion to apply conservative property valuations based on criteria such as the location and the buyer’s profile. In particular, applicants from sectors like aviation or hospitality may face stricter lending terms.

Although self-employed individuals can access financing, they must meet higher documentary requirements. Banks typically look for proof of business length, turnover, and profitability, including VAT returns. A frequent pitfall for self-employed applicants is presenting themselves as salaried employees, as lenders rigorously verify employment status.

An Enormous Project Pipeline Awaits

The influx of international buyers coincides with Dubai’s preparation for an upcoming major development cycle. According to W Capital, the total investment in new real estate projects in Dubai is expected to surpass AED 1 trillion over the next five years. This anticipated growth is driven by factors such as population expansion, foreign investments, and ongoing mega-project announcements from prominent developers.

Walid Al Zarooni, CEO of W Capital Real Estate, has highlighted Emaar’s AED 200 billion project as indicative of a new phase of urban development. Future projects include integrated cities, mixed-use areas, business hubs, and community-centered initiatives. Both existing and potential buyers should closely monitor these developments, as JLL forecasts around 59,000 residential units will be introduced in the remainder of 2026, followed by nearly 92,000 units in 2027—though delays due to supply chain issues may affect these timelines.