Dubai Real Estate Shifts Focus Toward Mid-Range Properties Amid Growing Investor Demand

Dubai's real estate market is evolving, with demand moving towards more accessible pricing as developers report a return of investor confidence, experts at the International Property Show said. Leading UAE developers said the appetite for ultra-luxury property above Dh10 million had softened in favour of the Dh1 million to Dh2 million bracket.

The ultra-luxury segment still attracts a pool of buyers, but “many buyers and international investors are directing their attention towards high-value properties that combine quality, comfort and luxury at more accessible price points”, Tauseef Khan, chairman and founder of Dubai developer Dugasta Properties, told The National.

He said the company's transaction data showed the typical investor's budget had risen from Dh600,000 to Dh950,000, and that a “significant share” of transactions fell between Dh1 million and Dh2 million, reflecting “stronger appetite for quality homes within the mid-range segment”.

Azizi Developments, one of the emirate's major developers, said sales had fallen by 70 per cent during the regional tensions but had since recovered to around 80 per cent of previous levels. Group chief executive Farhad Azizi noted, “The one type of product that is not in demand is very expensive price tag properties, over Dh10 million to Dh15 million.” Domestic demand for lower-priced homes remains strong, as many renters and residents look to become homeowners.

Figures from the Dubai Branded Residences Report H1 2026 by Morgan's International Realty show that the first half of the year marked a more “selective phase” for Dubai's branded residence market. Transaction volume declined 21 per cent year-on-year, and sales value decreased 47 per cent to Dh22.1 billion.

Meanwhile, new buyers have been slower to make decisions and more selective about their investments. Yousuf Fakhruddin, chief executive and managing partner of Fakhruddin Properties, said ultra-luxury buyers were taking longer to commit, though Dubai remains a safe haven for global investment.

Second-quarter data from the Dubai Real Estate Market Report by DXB Interact showed that the emirate's property market recorded 38,257 transactions worth Dh110.36 billion. According to Savills Middle East's second-quarter Dubai Residential Market Report, transaction volumes moderated as buyers became increasingly selective amid rising supply, greater choice, and continuing regional uncertainty. However, Madhav Dhar, co-founder and chief executive of ZaZen Properties, emphasized that the market was maturing rather than moving away from high-end property entirely, with significant demand for high-quality mid-range homes.

Developers are also increasingly relying on flexible payment structures to close deals. Mr Fakhruddin highlighted plans offering no down payment with monthly instalments, while Mr Khan noted that Dugasta Properties' 10-year payment plan now accounts for 80 per cent of its total bookings.

Organisers reported that the International Property Show, held at the Dubai World Trade Centre alongside the AIM Congress, drew more than 35,000 attendees from 191 countries. Dawood Al Shezawi, president of AIM and the IPS Congress, regarded the turnout as a signal of the industry's resilience and ongoing momentum.