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 Dubai cash home 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. Strong regulation, sustained buyer confidence, and consistent demand from foreign investors continue to support transaction volumes and valuations.
Dubai Cash Purchases Outpace Mortgage-Driven Markets
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 reduce 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, following 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. Even so, analysts say the dominance of cash transactions will continue to reduce volatility across the Dubai property market.
Confidence Over Leverage: What's Driving the Trend
"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."
Salikhov pointed to the emirate's dollar peg and fully digitalised property registration systems as additional factors drawing institutional and high-net-worth investors from Asia and Europe. The preference for outright ownership over leveraged purchases reflects a broader market dynamic: international buyers increasingly favour certainty over borrowed capital.
What to Expect from Dubai Real Estate in 2026
Elite Merit expects global liquidity returning in 2026 to support steady growth rather than speculative spikes. The firm sees Dubai entering its next cycle defined by discipline and sustainable value creation — a marked contrast to the leverage-driven booms seen in other global property markets.
With UAE mortgage rates declining and cash buyers remaining dominant, the Dubai real estate market is positioned to absorb global financial shifts without the disruption that typically follows in debt-heavy markets.
