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What To Know
- More than half of all residential property transactions in Dubai during the second half of 2025 were paid in cash, according to a new analysis from Elite Merit Real Estate.
- The study estimates that 54% of all residential deals in H2 2025 were settled without financing, underscoring how Dubai’s real estate market is less exposed to international borrowing conditions than major cities such as London and New York.
- Elite Merit expects global liquidity returning in 2026 to support steady growth rather than speculative spikes, with the city entering its next cycle defined by discipline and sustainable value creation.
More than half of all residential property transactions in Dubai during the second half of 2025 were paid in cash, according to a new analysis from Elite Merit Real Estate. The report highlights how liquidity-driven purchases are helping the city maintain stability even as global financial markets move through shifting interest rate cycles.
The study estimates that 54% of all residential deals in H2 2025 were settled without financing, underscoring how Dubai’s real estate market is less exposed to international borrowing conditions than major cities such as London and New York. Analysts say strong regulation, buyer confidence, and sustained demand from foreign investors continue to support transaction volumes and valuations.
Global markets have faced two years of elevated borrowing costs, but central banks are now signalling a cautious shift toward easing. In the U.S., the average 30-year mortgage rate has dropped to roughly 6.2%, its lowest point since early 2023. A similar trend is emerging in Europe as lenders lower rates to stimulate demand.
The UAE has followed this trajectory. The Central Bank cut its overnight base rate from 4.15% to 3.90% in October 2025, after a previous reduction in September. Major banks are now offering home-loan rates in the 3.75% to 4.99% range, a decline that could encourage mortgage-based purchases in 2026. While this shift will likely increase financing activity, analysts say the dominance of cash will continue to reduce volatility.
“Dubai remains closely connected to global capital cycles, but the real driver today is confidence,” said Elkhan Salikhov, CEO of Elite Merit Real Estate. “In an environment where trust matters more than leverage, Dubai’s mix of liquidity, governance and transparency continues to draw institutional buyers.”
Elite Merit expects global liquidity returning in 2026 to support steady growth rather than speculative spikes, with the city entering its next cycle defined by discipline and sustainable value creation.
