Dubai’s Housing Market Plays by Its Own Rules — It Runs on Cash

Dubai’s residential real estate market has undergone a dramatic shift over the past decade, and the balance between mortgage-backed purchases and cash transactions tells the story.

Back in 2010, mortgage sales made up the majority of residential transactions in Dubai, peaking at nearly 77% in 2019. However, the trend has since reversed. By 2024, cash buyers accounted for 78% of all residential property sales, leaving mortgage sales at just 22%.

This change reflects not only the city’s growing appeal to high-net-worth investors and global buyers but also structural changes in financing behavior. Rising interest rates, stricter lending rules, and global economic uncertainty have nudged many investors toward upfront payments, especially in a market where liquidity and speed of transaction are highly valued.

For sellers, this means faster deal closures and greater certainty. For buyers, particularly international investors, paying in cash offers a competitive edge in Dubai’s fast-moving market.

As Dubai continues to position itself as a global investment hub, the dominance of cash transactions highlights a key trend: the city’s property market is increasingly driven by wealthy investors seeking stability, security, and growth potential — without the reliance on traditional mortgage financing.

Source: Dubai Pulse, Dubai Land Department

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