Property Finder, the MENA region’s leading property portal, has released new data highlighting key residential real estate trends in Dubai and Abu Dhabi. The report indicates a significant market shift from renting to buying, driven by long-term residency policies, buyer confidence, and a preference for premium properties.
Dubai Sees Surge in First-Time Buyers
Data from Property Finder reveals a clear pivot toward home ownership in Dubai. According to its consumer sentiment poll, 70% of respondents plan to purchase a home within the next six months. This is reflected on the platform, where sales listing impressions grew to 49% in 2025, while rental impressions declined.
First-time buyers have become a major force in the market, bolstered by long-term visas and government initiatives. Dubai’s First-Time Home Buyer programme, for instance, helped over 2,000 residents purchase their first homes, contributing more than AED 3.25 billion to residential property sales in the last six months of 2025.
A Preference for Premium and Larger Homes
The market is also seeing a distinct move towards higher-value properties. Entry-level homes (under AED 1,000 per square foot) saw their market share shrink from 14% in 2024 to just 8% in 2025. In contrast, premium and luxury homes (above AED 2,500 per square foot) increased their market share from 15% to 20% during the same period, with listings rising 27%.
This trend is supported by data from Mortgage Finder, which shows that buyers are committing a larger portion of their income—31% in 2025, up from 23% in 2024—to mortgage payments, signaling strong market confidence.
Apartments Dominate Volume as Villas Lead Price Growth
Apartments constituted 93% of all residential transactions in 2025, benefiting from healthier supply and a wider variety of options. While villas saw their transaction share decrease from 10% to 7% due to limited supply, their prices surged by 14% year-on-year, outpacing the 6% growth seen in apartments. Mid-market villas, priced between AED 1,000 and 1,800 per square foot, accounted for 72% of villa transactions, underscoring a demand for space and privacy.
Studio Apartments Emerge as High-Yield Assets
Within the apartment segment, studios have outperformed larger units. They accounted for 25% of apartment transactions in 2025, up from 22% in the previous year. Studio prices grew by 14% annually over three years and delivered rental yields of 6%, compared to 4–5% for larger apartments, making them the most return-efficient residential format in Dubai.
Abu Dhabi Market Mirrors Ownership Trend
Abu Dhabi’s real estate market is following a similar trajectory, with a strong tilt towards homeownership. Sales listings on Property Finder accounted for 39% of platform impressions in 2025, a significant jump from 26% in 2024.
Apartments remain the preferred residential format, making up 72% of transactions. Meanwhile, the villa segment is characterized by upsizing, with 4+ bedroom homes now comprising 62% of all villa transactions, up from 38% three years ago. This shift points to a growing demand from families planning for long-term settlement in the capital.
About Property Finder
Property Finder is a pioneering property portal in the Middle East and North Africa (MENA) region, dedicated to shaping an inclusive future for real estate while spearheading the region’s growing tech ecosystem. At its core is a clear and powerful purpose: To change living for good in the region. Founded on the value of great ambitions, Property Finder connects millions of property seekers with thousands of real estate professionals every day. The platform offers a seamless and enriching experience, empowering buyers, investors and renters to make informed decisions.
Source: Zawya
