Dubai Real Estate Market Opens the Year with Record Momentum.
Dubai’s real estate market started the year strong. Transaction values went up, more deals were made, and buyers stayed active in both ready and off-plan properties. Mortgage Brokers also played a key role in helping buyers navigate the market.
On the surface, the market looks unstoppable.
But that’s only one side of the story.
Behind the headlines, developers are facing more pressure because land prices are rising and project margins are getting tighter. This shift affects not only developers but also buyers, changing how they think, borrow, and plan. Mortgage brokers are noticing these new conversations.
Record Property Transactions Highlight Strong Buyer Demand
Let’s start with what’s undeniable.
Dubai recorded its highest-ever monthly property transaction value, crossing AED 100 billion. Deal volumes also moved higher year-on-year, reinforcing that buyer demand — both investor and end-user — remains strong.
Mortgage activity kept pace. Financing transactions went over AED 32 billion, which means more buyers are using mortgages instead of paying with cash.
For mortgage brokers, this surge is clear in the number of enquiries, pre-approval requests, and early financing conversations happening every day.
Demand is real. Buyers are active. And financing remains central to market participation.
Rising Land Prices Are Reshaping Developer Economics
Here’s where the tone of Dubai real estate news begins to shift.
Land prices in the city have reached historic highs. While this might seem positive, it puts a different kind of pressure directly on developers.
Higher land costs reduce profit margins before construction even starts. Profitability now depends less on selling prices and more on how quickly units sell after launch.
In other words, sales velocity now drives project viability.
When units sell more slowly, developers have less cash flow. As a result, they become more selective about launching new projects. This isn’t due to a lack of demand, but because it’s harder to make projects feasible.
Supply Growth Is Increasing, But Absorption Tells a Different Story
Another layer to this story is supply.
Dubai is expected to have between 40,000 and 50,000 unit handovers this year, which is higher than the city’s usual average of about 35,000 homes each year.
At first glance, that might sound like oversupply risk.
But it’s more nuanced than that.
Most of these units have already been sold. The main question now is not if they will sell, but how quickly investors will exit, resell, or hold them.
So instead of price corrections, we may see:
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Slower selling timelines
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Flatter pricing growth
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Tighter developer margins
At least at first, the pressure is on developers, not on end buyers.
What This Market Shift Means for Property Buyers?
This is where things become more relevant on the ground.
Strong transaction momentum shows that demand is still healthy. However, rising development costs could push future off-plan prices higher, especially in prime locations or unique projects where margins need to cover land costs.
Buyers are beginning to recognise this shift.
Decisions are becoming less emotional and more focused on finances. People are now asking, “What should I comfortably borrow?” instead of just “How much can I buy?”
And that’s a significant behavioural change.
Why Mortgage Brokers Are Becoming More Critical in Today’s Market
This evolving market dynamic is placing mortgage brokers in a more strategic advisory position. Buyers aren’t just asking about approvals anymore. They’re asking about sustainability.
Questions now centre around:
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Long-term repayment comfort
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Interest rate exposure
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Lifestyle flexibility
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Exit strategy viability
From a mortgage perspective, approvals show risk tolerance, not financial comfort. In a market where prices and supply are changing, this difference is important.
Mortgage brokers are helping buyers define safe ranges, not just maximum limits.
Buyer Financing Behaviour Is Evolving with Market Conditions
Dubai real estate news often highlights transaction volumes and prices, but financing patterns are just as important.
As mortgage usage rises alongside property values, more buyers are engaging financing advisors earlier in their journey.
Pre-approvals, affordability modelling, and repayment simulations are happening before property searches even begin.
This signals a more mature buyer mindset — one shaped by planning rather than pressure.
Dubai’s property market isn’t slowing down; it’s adjusting. Demand remains strong, and financing accessibility continues to support market activity.
But at the same time, rising land prices and development feasibility pressures may influence how supply enters the market over the next cycle.
This creates a market moving at two speeds:
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Buyer momentum above
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Developer margin pressure below
Understanding both sides is essential for informed decision-making.
From a mortgage broker’s perspective, current Dubai real estate news shows more than just transaction growth. It shows a market adjusting its internal economics.
For buyers, this isn’t a warning sign. It’s a sign of clarity.
The more development costs rise, the more important financing structure, affordability planning, and long-term comfort become.
In markets like this, the smartest decisions are not based on approval limits but on financial planning for the future.
Frequently Asked Questions About Mortgage Brokers and Dubai Real Estate News
How do mortgage brokers help buyers in Dubai’s current market?
Mortgage brokers help buyers understand their borrowing capacity beyond just what the bank approves. They structure financing based on affordability, repayment comfort, and long-term flexibility — especially important as property prices rise.
What does recent Dubai real estate news mean for property buyers?
Recent news highlights strong demand but rising land prices. This may push off-plan property prices higher, making financial planning and mortgage structuring more critical before purchasing.
Will rising land prices affect mortgage affordability?
Indirectly, yes. Higher development costs can increase property prices, which may raise loan requirements and monthly repayments for buyers entering the market.
Is it better to speak to a mortgage broker before buying property?
Absolutely. Early mortgage consultation helps buyers define safe borrowing limits, understand financing options, and avoid financial over-commitment.
Are more buyers using mortgages in Dubai now?
Yes. As property values rise, more buyers are using mortgage financing instead of cash purchases, making structured lending advice more important.
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