Dubai’s property landscape is seeing an intriguing shift as more buyers turn to financing, even while the total value of these mortgages declines. According to recent data from Property Finder, the number of registered mortgages climbed for the third consecutive month in October, reaching 3,811 transactions. However, the total volume of these loans saw a significant 24.7% drop, landing at Dh7.32 billion. This trend is particularly evident in the apartment sector, where the average mortgage amount has shrunk considerably. As interest rates continue to climb following central bank adjustments, it appears that mid-income buyers are becoming the primary drivers of the market, opting for more manageable loan sizes that align with current affordability levels.

Experts suggest this trend shouldn’t be misread as a weakening market; rather, it indicates a broader, more sustainable participation. By gravitating toward homes that fit within their financial reach—partly aided by price adjustments seen earlier in the year—a larger segment of the population is entering the property ladder. While the surge in mortgage-backed apartment sales highlights this democratization of homeownership, the villa market has followed a different path. Villa buyers are opting for fewer mortgages overall, though those who do secure financing are choosing to borrow larger amounts compared to previous months. Overall, with total property deals rising by 5% in October, the market is showing resilience as it moves toward a more diverse and accessible footing.