The share of cash buyers in Dubai’s property market has fallen sharply over five months, according to internal data from Allsopp & Allsopp.
In April, 47 per cent of the agency’s buyers paid in cash. By August, that figure had dropped to 23 per cent, meaning more than three-quarters of last month’s transactions were mortgage-financed.
The monthly progression tells the story clearly: 47 per cent cash in April, 43 per cent in May, 42 per cent in June, 34 per cent in July, and 23 per cent in August.
That shift in how buyers are funding purchases appears to be changing what they can afford. Allsopp & Allsopp’s August data shows deals in the AED 5–10 million bracket rose 20 per cent year-on-year, while transactions above AED 10 million were up 9 per cent year-on-year. The agency’s reading is that mortgage access is pulling demand upward into price ranges that a cash-only budget would not have reached.
“There has been a clear shift in buyers borrowing behaviours over the last few months. Those who would’ve historically purchased cash are now borrowing to stretch their budgets further to secure larger, longer term family homes. This is a strong reflection of the confidence many buyers continue to have in the market. The same trend is evident amongst investors. Rather than tying up significant capital in a single purchase, investors are now borrowing to retain liquidity keeping them ready for the next investment opportunity that arises. Furthermore, banks have relaxed their lending criteria as a result of increased confidence in the UAE property market and demand for finance,” Michael Melim, Head of Mortgages at Allsopp & Allsopp said in a statement.
“This is one of the clearest signals we’ve seen all year. When financing becomes the default rather than the exception, it changes the entire shape of demand, not just the numbers. We’re watching buyers make decisions today that a cash-only market simply wouldn’t have allowed,” Lewis Allsopp, Chairman of Allsopp & Allsopp added.
The data comes from a single agency and reflects its own transaction mix rather than the broader Dubai market. But the direction of travel, fewer cash deals, bigger ticket sizes, and looser lending conditions, points to a market where financing is doing increasingly heavy lifting.
