With rising interest rates reshaping real estate, here’s what the Dubai Land Department’s latest data reveals about the current market:
For Buyers
Interest rates are up, impacting affordability. According to the Dubai Land Department, the average mortgage payment for mid-range properties has increased by approximately 15% in the last quarter alone, prompting many buyers to consider smaller or more affordable homes.
For Sellers
Higher rates mean fewer buyers are entering the market, leading to longer listing times. Dubai Land Department data shows a 12% drop in sales volumes for properties priced above AED 2 million, indicating a need for strategic pricing and enhanced property features to attract qualified buyers.
For Investors
Rising rates are shifting the investment landscape. Investors are seeing a 7% increase in rental demand in popular Dubai communities, reflecting a trend where more residents are opting to rent rather than buy, creating new opportunities in the rental market.
While interest rates bring challenges, the Dubai market remains resilient. Adapting to this shift with informed, data-backed decisions is key to finding opportunities amid changing conditions.