Dubai’s property market remains strongly supported by cash buyers, with more than two thirds of resale transactions completed in cash. Islay Robinson explores what this means for financed buyers and why certainty can make all the difference.

Dubai recorded 37,429 property sales worth AED 92.9 billion in the third quarter, according to analysis from fäm Properties.

The headline numbers remain substantial, although sales value was roughly half that of the same quarter last year. But the figure I find most interesting is not the total value of transactions. It is what is happening in the resale market.

More than 67% of Dubai's 11,988 resale transactions in the third quarter were completed in cash. At the same time, primary-market sales continued to account for the majority of activity, with 25,441 transactions worth AED 52.6 billion compared with AED 40.3 billion across the resale market. Garant Consulting

That distinction matters.

A cash buyer does not need to wait for a mortgage valuation, lender underwriting or the final documentation that sits behind a financed purchase. For a seller, that can make the certainty of completion just as important as the headline offer.

That is where I think financed buyers in Dubai need to be particularly well prepared.

Cash Does Not Mean The Market Is Weak

I would not read the cash share on its own as a sign of weakness.

Nor does it tell the whole story.

The distribution of transactions suggests a market with buyers operating at very different price points. Properties worth more than AED 5 million accounted for 8.3% of third-quarter sales by number, while 34.1% were below AED 1 million. A further 32.4% were between AED 1 million and AED 2 million. Garant Consulting

The ultra-prime transactions attract the attention because the numbers are spectacular. September's most expensive villa sold for AED 260 million, while the most expensive apartment, at Como Residences on Palm Jumeirah, sold for AED 71 million. TradingView

But those transactions are a very small part of the overall market.

What I see in the cash figures is something different: a deep pool of buyers with access to liquid capital.

That is not the same thing as a market short of demand.

Financing Has To Remove Execution Risk

The question I ask clients is a simple one:

What is the borrowing actually for?

There is no single answer.

Some clients need finance because they cannot or do not want to fund the entire Dubai purchase in cash. Others could buy the property outright but prefer to keep capital available for their business, other investments or future acquisitions.

That distinction is particularly relevant for internationally mobile clients with assets in several jurisdictions.

Finance for a Dubai purchase can potentially be raised against the Dubai property, against assets held elsewhere, or through a combination of financing strategies, subject to lender criteria.

A loan secured against UK property, for example, is a separate transaction from a Dubai mortgage. It has its own valuation, underwriting and documentation requirements.

The important thing is to establish that structure before making an offer.

If a buyer starts viewing properties first and only works out how the purchase will be financed afterwards, they may already be at a disadvantage against a cash buyer.

Sellers Are Looking For Certainty

This is where the cash data becomes particularly relevant.

If a seller has two similar offers and one buyer can demonstrate readily available funds while the other still needs to arrange financing, the difference is not simply the price.

It is execution risk.

A buyer who has finance agreed in principle, understands the lender's requirements and has their source of funds documented can approach a negotiation very differently from someone who is still trying to establish what they can borrow.

An agreement in principle is not a formal mortgage offer, and final lending remains subject to the lender's valuation, underwriting and criteria.

But preparation still matters.

In a market where cash buyers are common, I want my clients to be able to demonstrate that financing will not become the reason their transaction falls apart.

The Top End Works Differently

My firm's Dubai office gives us a close view of what is happening at the higher end of the market, and the data reinforces something I see regularly.

At the top of the market, the conversation is not always about the lowest possible cost of finance.

Certainty can matter more.

A AED 260 million property requires a lender with the appetite for the transaction, a borrower whose financial structure can be understood, and a timetable that works for everyone involved.

That applies whether the eventual purchase is funded entirely with cash, entirely with borrowing or through a combination of the two.

The larger and more complex the transaction becomes, the more important it is to establish those parameters early.

Dubai And The UK Are Not The Same Financing Conversation

For UK-based clients looking at Dubai, one of the mistakes I see is assuming that financing a Dubai property works in exactly the same way as financing a UK property.

It does not.

The property, lender, jurisdiction, currency, ownership structure and repayment strategy can all affect the financing.

For some clients, borrowing against a UK property can make more sense than taking a mortgage against the Dubai purchase. For others, a Dubai mortgage may be the more appropriate route. In more complex cases, there may be a rationale for considering both. Borrowing against a UK property puts that property at risk if repayments are not kept up.

The right answer depends on the individual's wider balance sheet and objectives.

That is why I prefer to structure the financing conversation before the property search gets too far.

Off-Plan Changes The Timing

There is another important distinction between resale and off-plan purchases.

A developer selling an off-plan property may take instalments throughout the construction period. That means the financing requirement can arise much later than it would for a completed property.

A buyer who intends to refinance when the property is completed needs to think about that future transaction from the beginning.

The lender will ultimately need to assess the borrower's income and assets, as well as the property's value and the terms available at that point. None of those can simply be assumed today, and the value at completion may be lower than the purchase price.

So I would not treat an off-plan purchase as a financing problem that can be dealt with when the keys are ready.

It is something that needs to be considered at the outset.

My View

Dubai's third-quarter numbers tell me that the market remains active, but it is important to look beyond the headline AED 92.9 billion.

The primary market is doing much of the heavy lifting on transaction volumes, while the resale market has a particularly high proportion of cash transactions. Garant Consulting

For buyers, that changes the importance of preparation.

You do not necessarily need to be a cash buyer to compete with one. But if you are relying on finance, you need to know how that finance will work and be able to demonstrate that the transaction is achievable.

At Enness, we work with more than 1,000 lenders across our network, and my team in Dubai regularly deals with clients whose financing requirements cross jurisdictions and asset classes.

The relevant question is not simply, "Can I borrow?"

It is, "Can I structure the borrowing in a way that gives me the certainty to compete?"

That is increasingly important in Dubai, where sellers are accustomed to dealing with buyers who can move quickly.

The next set of Dubai Land Department figures, covering October, should give us another indication of whether this pattern is continuing.

For now, my message to clients is straightforward: sort the financing before you fall in love with the property.

Risk warning: Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

If you borrow in a currency different from your income or assets, changes in exchange rates may increase the amount you need to repay.

Compliance note: Approved wording regarding mortgages on property outside the UK not being regulated by the FCA is still to be confirmed. This should be inserted once approved before publication.

General information: This article is for general information only and does not constitute personal financial or mortgage advice. Lending decisions, rates and terms are subject to individual circumstances and lender criteria. Property prices can fall as well as rise. Enness does not provide property, investment or tax advice.