The Dubai residential real estate market is seeing a notable shift toward cash transactions as borrowing costs face upward pressure. According to recent data from Betterhomes, cash purchases climbed to 44 percent of their total sales in the third quarter of 2026, up from 36 percent earlier in the year. This trend suggests that a large segment of investors and homebuyers are increasingly opting to bypass bank financing entirely, likely in response to the UAE Central Bank’s decision to adjust interest rates. While this reliance on cash provides the market with a layer of resilience, mortgages continue to serve as a vital pillar for property acquisitions, with banks actively competing for business through refinancing deals and attractive buyout offers.

Despite the rise in cash deals, experts caution against viewing interest rates as the only factor at play. The structure of Dubai’s property market—heavily influenced by a massive volume of off-plan sales—naturally favors cash buyers who utilize developer-led payment plans rather than traditional bank loans. Furthermore, while the broader market shows a heavy skew toward cash, the ready-property sector remains deeply reliant on mortgage financing. Looking forward, prospective buyers should remain vigilant. As banks potentially tighten their eligibility assessments and stress-test requirements, those planning to purchase with a mortgage will need to carefully monitor their borrowing capacity to ensure they secure favorable financing before committing to a deal.