Dubai's Mid-Range Real Estate Surges Ahead

Dubai's mid-range real estate dominates the market

The real estate market data for the third quarter of 2025 has once again confirmed what has been felt for some time: Dubai's mid-range apartments – i.e., properties available in the price range of 1–3 million dirhams – are dominating the market. This segment is no longer just a complement to the world of luxury projects, but forms a solid foundation for buyer activity, whether among end-users or investors.

The rise of the mid-range sector

Dubai's population has grown dynamically in recent years, fueled in part by the country's economic openness and the popularity of long-term visa programs, such as the 10-year Golden Visa. More than 155,000 new residents have arrived this year alone, which naturally impacts housing market demand. These new residents often do not seek properties in the most expensive category but demand modern infrastructure, good location, and appropriate size – features offered by mid-range real estate.

Housing in the 1–3 million dirham range accounted for over half of all transactions: 54.47% in the third quarter, which amounts to 29,292 sales. In contrast, the affordable category below 1 million dirhams represented 25.30% (13,607 sales), which is also significant but represents a smaller share. The growing dominance of the mid-range category shows that the market does not only cater to premium or entry-level needs, but it also reflects the real, long-term needs of a wider social stratum.

The premium segment remained stable

There was activity in the higher price categories too, but to a lesser extent. The 3–5 million dirham segment accounted for 10.68% of total transactions, driven mainly by families seeking more spacious villas or premium apartments. Even more expensive properties, between 5–10 million dirhams, represented 7.02%, while the ultra-premium category over 10 million dirhams accounted for 2.52%. This latter segment primarily thrives on demand for branded residences and waterfront luxury homes.

However, these numbers also indicate that luxury has increasingly become a niche market, while the real mass demand centers on mid-range housing.

Why is the mid-range segment so popular?

The reasons are complex. On one hand, both international investors and local residents seek properties that offer good locations yet provide modern comfort at an affordable price. Mid-range homes are usually located in easily accessible communities and offer excellent amenities: communal spaces, pools, gyms, and green areas.

On the other hand, rental yields in this category are attractive. Such properties are easier to rent out, allowing investors to realize returns more quickly. The number of renters is continuously increasing, especially among new workers and families who are not yet planning to purchase their own homes but require quality housing.

The loan market also has a significant impact

Following a rate cut in September, access to mortgages improved, mobilizing new layers of buyers. Those who had previously been waiting or were only renting on the market can now acquire homes on more favorable terms. The combination of lower monthly payments and long-term visa programs encourages an increasing number of people to invest in their own properties.

Developers are also responding to changing market demands: numerous new projects are emerging specifically in this price range, capitalizing on stable demand. Moreover, institutional investors are showing increased interest in office and residential properties, not just for construction purposes but also as yield-generating assets.

Outlook for the fourth quarter

The fourth quarter is traditionally a strong period for Dubai's real estate market. Year-end international investor interest, the introduction of new projects, and the peak tourist season all contribute to further strengthening demand. Based on current trends, the role of mid-range real estate is expected to grow even more, especially if inflation remains low and interest rates remain favorable.

Looking ahead, the market's stability is well demonstrated by the planned delivery of more than 250,000 new residential units between 2026 and 2027. This supply expansion could make the market more balanced, especially if demand remains lively.

Summary

Dubai's real estate market has entered a new phase. While luxury projects remain spectacular and significant, the true driver has become the mid-range residential segment. Housing priced between 1–3 million dirhams is not only accessible but also offers attractive investment opportunities. Population growth, favorable loan conditions, and the 10-year residency visa program all contribute to ensuring that this segment remains a key player in Dubai's real estate market for the long term.

(The article is sourced according to industry leaders' statements.)