Dubai Property Market Shifts Towards Mid-Range, Offers Flexible Payment Plans

Dubai's real estate market is undergoing a notable evolution, with a growing preference for more accessible pricing points, as reported by developers at the International Property Show. While the ultra-luxury segment continues to attract buyers, there's a clear trend of investors and buyers focusing on high-value properties that combine quality and comfort at more attainable prices, typically in the AED 1 million to AED 2 million bracket.

Shifting Demand and Budgets

According to Tauseef Khan, chairman and founder of Dugasta Properties, his company's transaction data reveals a rise in the typical investor's budget from AED 600,000 to AED 950,000. A significant portion of transactions now falls within the AED 1 million to AED 2 million range, indicating a stronger appetite for quality homes in the mid-range segment. Farhad Azizi, CEO of Azizi Developments, noted a softening in demand for properties above AED 10 million to AED 15 million, while domestic demand for lower-priced homes remains robust, driven by residents transitioning from renting to homeownership.

Market Selectivity and Data Insights

Recent reports underscore increased market selectivity. The Dubai Branded Residences Report H1 2026 by Morgan's International Realty showed a 21 per cent year-on-year decline in transaction volume and a 47 per cent decrease in sales value to AED 22.1 billion for branded residences. Second-quarter data from DXB Interact's Dubai Real Estate Market Report recorded 38,257 transactions, with value falling 40 per cent to AED 94.17 billion, though this was attributed to buyer selectivity rather than a price drop.

Despite these shifts, experts like Madhav Dhar of ZaZen Properties suggest the market is maturing rather than moving away from luxury entirely, with strong demand for both luxury and growing interest in mid-range properties. Buyers are seeking excellent design, amenities, sustainability, and connectivity at sensible price points.

Flexible Payment Plans Gain Traction

Developers are adapting to these more price-conscious buyers by offering flexible payment solutions. Yousuf Fakhruddin, CEO of Fakhruddin Properties, highlighted his company's plan featuring no down payment and a 1.5 per cent monthly instalment. Dugasta Properties' Tauseef Khan noted that their 10-year payment plan now accounts for 80 per cent of total bookings, reflecting strong demand for financial flexibility among buyers navigating market fluctuations.

Overall, the market outlook remains positive, with Mohammed Yahya, director of the Dubai Land Department's Real Estate Transactions Department, reporting a 7 per cent rise in transaction volumes and a 30 per cent climb in total value during the first quarter, underscoring healthy underlying demand across all segments.