Dubai Property Market Booms as Sales Increase 18% to Dh34.8 Billion

The Dubai property market gained what it has been missing for the last few months; strong performance. Following straight declines from the past two months, sales transactions climbed 5% in October2026. The Dubai Land Department (DLD) also reported an 18% rise in sales value compared to September.

With a jump in resale properties and accelerated mortgage registrations, Dubai real estate has become more attractive for many expats and foreign investors. Also, an unprecedented demand is arising among middle-income buyers. So, let’s unfold what these growing numbers actually intend for the future.

October 2026 Property Sales in Dubai: Figures at a Glance

The sales market improved compared to August and September of 2026. However, July recorded 14,138 transactions in total, while January and February topped with 17,000+ sales monthly.

Dubai Property Market October 2026: Resale vs. Off-Plan

The resale segment in the emirate’s real estate market led the growth table in October 2026 by accounting for AED 18.1 billion. This underscores an unprecedented increase from AED 15.8 billion worth secondary sales value reported in the month of September.

Additionally, sales transactions in the similar segment recorded a 13% uptick with 5,304 deals locked. Contrarily, 6,597 primary market transactions demonstrated an unchanged condition on a monthly basis. Moreover, sales momentum in the off-plan segment represented a month-on-month gain of 22.79% to AED 16.7 billion compared to AED 13.6 billion in the earlier month.

Dubai Mortgage Registrations in October 2026

The month recorded an increase in borrowers and high demand for smaller loans. With over 3,811 mortgages registered in the discussed month, sales involving financing encountered a 5.2% surge along with a third consecutive month-on-month rise. However, the mortgage value in total fell by 24.7% to AED 7.32 billion.

The Chief Revenue Officer of Property Finder, Cherif Sleiman, highlights the significance of increasing mortgage counts rather than the falling value. These numbers also suggest a shift towards small loans and the broad presence of properties that are available for sale on accessible entry points. This means affordability is the key driver to growth in sales and need for smaller loans.

1. Villa Mortgage Registrations

Villa properties purchased through mortgaged financing reached 1,037; making it the highest figure in four months. Nonetheless, only 52.1% involved a mortgage, down from 79.2% in September.

The monthly report also pointed to larger loans for villa buyers in October 2026 with average AED 2.87 million against AED 2.74 million a month earlier.

2. Apartment Mortgages

The proportion of mortgages shared by apartments for sale in Dubai is 85.8% of total mortgages registered in the month. This shows a 34.7% rise compared to 31% of September and 26.7% of August. However, the average mortgage loan for apartments declined from AED 2.67 million in September to AED 1.77 million in October 2026.

3. Increase in Mortgage Applications from Middle-Income Buyers

Buyers with a monthly salary ranging from AED 20,000 to AED 59,999 have reportedly accounted for 68.5% of all mortgage applications. This highlights a remarkable increase from 55.7% reported in September 2026. Investors of the same income bands made up 12.8% applications.

This accelerating activity is driven by a shift in asking price since adjustments in February 2026, which made homeownership accessible for many buyers.

Initiatives like the First-Time Home Buyer program are also driving this growth. The policy reportedly supported over 3,200 buyers in its first year, with transactions accounting for AED 5 billion.

The rise in population also adds a steady base of demand. With the city population reaching 4.8 million in September 2026, the demand for residences ultimately increased. This figure alone represented an increase of 226,885 individuals since the beginning of the year.

Rental Market and Growing Demand in Dubai

Tenants accounted for 73% of enquiries that are generated through Property Finder, marking a significant increase in rental market activities. This proportion of October is commendably higher than 58% enquiries reported in February of 2026. Moreover, buyers also led the enquiry share by representing a 27% rise from 24% in September 2026.

Following a surprising decline in asking rents in August, the rental prices accelerated in October 2026. This reflects excellent recovery with consistent increase in the second consecutive month.

Rental Trends October 2026 vs. October 2025

Rising Demand for Affordable Properties in October 2026

The proportion of properties sold below AED one million accounted for 31% and properties between AED one and two million is 33% respectively, meaning an exceptional demand for accessible real estate.

The trend was followed by properties worth two to three million, which made up 15% of all transactions and properties between three and five million AED shared 11% of all sales volume. Real estate above five million stood last with 10% sales share in October 2026.

Increase in Per Sq. Ft Property Prices

Beyond a significant market shift in October, property prices also grew on per/ sq. ft. against September. With average values revolving around AED 1,550, a 2.5% month-on-month increase was reported, driving appeal among buyers looking for capital growth closely.

Key Trends to Watch before 2026 Ends

The year 2026 has moved Dubai property market from its fast-paced activity into a more selective environment, suggesting buyers and end-users to enter by taking into account few trends:

i. Transition to a Selective Market

As 2026 comes to a close, both investors and buyers are not rushing into purchase after launch hype, but are prioritizing build quality, reputation of the developer, and demand of location.

ii. Slower Off-Plan Resales Activity

Since the last few years, the city has reported a steady activity in quick flip strategy. This means that many buyers considered reserving off-plan units, paying a fraction, and reselling before completion. However, this trend has cooled off in 2026 as secondary off-plan resales moderate.

iii. Selectivity in Growing Prices

Inbound migration and sustained population growth are serving as key drivers to support overall market fundamentals. However, specific micro-locations have reported adjustments in asking prices, advising a careful move among buyers.

iv. Large Properties Outperforming Apartments

Villas, townhouses, and low-density spaces continue to show robust resilience in 2026. Also, reports represented a steady increase in demand for prime luxury properties compared to high-density apartments across sub-markets.

v. Rising International Interest

Drawn by the UAE’s dirham’s peg to the US dollar, an exceptional surge is reported in capital deployment and investor inquiries from the US buyers. This suggests a rebound activity in short-term and holiday-rental yields.

vi. Delivery vs. Launch Volume

With thousands of residences delivered through the first half of 2026, both completed units and actual handovers have increased significantly. This puts a localized pressure on oversupplied segments, while ready property sales increase driven by their immediate visibility and availability for occupancy and rent.

Closing In!

The increase in residential transactions and sustained rental demand combined with surge in mortgage registrations position Dubai as a mature property hub, supported by investors and end-users in equal proportions.

October 2026 figures, however, cannot decide whether the turning point as the next two months will show the real growth and shift in choices overall. The numbers above points to steadier activity after months of declining sales volume and value since January and February.

These figures also highlight a rebound activity in investors’ interest and tenants who are actively searching for their new home in Dubai. First-time buyers, particularly, middle-income groups are largely considering smaller loans to benefit from the city’s zero percent tax incentives and residency policies.