A recent report by the real estate platform Propertyfinder reveals that demand for buying or renting residential apartments continues to dominate the Dubai real estate market, reflecting the strength of this sector, which has been based on the activity of residential apartments for years. The report showed that apartments accounted for about 80% of total rental searches last November, compared to 20% for villas and townhouses, indicating that studio and one-bedroom units saw an increase in their share of total rental demand. The report attributes this to rising rents over the past year, which has prompted individuals and small families to opt for more space and cost-efficient units while maintaining quality of life and prime locations. Regarding the sales market, the report indicated that apartments represented 58% of total searches on a year-over-year basis in November, while the share of villas declined slightly. Approximately 70% of apartment searches focused on units with one or two bedrooms, reflecting a continued trend toward medium-sized homes with affordable prices in vibrant, well-connected communities. According to Morgainfinder data for November 2025, the income bracket earning between AED 20,000 and 40,000 per month captured about 38% of total mortgage applications, marking the largest share among all income segments in the market, compared to 30% in October. The data shows that 85% of applicants within this segment are looking for properties for personal use, while 15% are leaning toward real estate investment, reflecting the dynamism of this group and the growing number of new investors. It also highlights that middle-income individuals tend to buy residential apartments, considering them a more cost-effective and readily available option, a trend suitable for professionals and small families seeking stability and long-term living and working in Dubai. According to the data, the share of buyers with a monthly income between AED 60,000 and 80,000 or more, who plan to purchase investment properties, does not exceed 2.04%. However, this share rises to 5.1% among buyers in the AED 20,000-40,000 income bracket, reflecting greater investment activity among the middle-income group. Conversely, the data confirms that higher-income individuals help stabilize demand in the villa market. The data shows that buyers with a monthly income between AED 40,000 and 60,000 are the most inclined to buy villas, with 13.27% of them preferring standalone homes, compared to 8.16% who prefer apartments within the same bracket. It also notes that for very high-income earners, those with a monthly income exceeding AED 80,000, villas remain their preferred housing choice, with 10.2% opting for them compared to 4.08% who prefer apartments. November data shows that purchasing affordable residential properties for personal use is a top priority for buyers with a monthly income between AED 20,000 and 40,000. 70% of searches were focused on one or two-bedroom apartments.
