Dubai’s real estate market is showing remarkable resilience as global liquidity shifts and central banks ease borrowing costs. Elite Merit Real Estate reports that 54% of residential property transactions in the second half of 2025 were cash deals, reflecting a market driven more by confidence than leverage.
Liquidity Over Leverage
In a world adjusting to lower interest rates after two years of high borrowing costs, cash purchases have become a stabilizing force. Investors are prioritizing certainty, speed, and predictability over financing complexity. This liquidity-driven approach reduces exposure to global interest rate volatility and signals a mature market mindset: value and trust outweigh speculative gains.
Regional and Global Rates in Context
Global borrowing trends are easing. The average 30-year US mortgage rate has fallen to 6.2%, while Europe is experiencing a similar trend. In the UAE, the Central Bank lowered its overnight base rate from 4.15% to 3.90% in October 2025. Leading banks now offer home-loan rates between 3.75% and 4.99%, encouraging mortgage-backed activity without destabilizing cash-driven transactions.
This combination of declining rates and high liquidity positions Dubai as a haven for investors seeking stability amid global uncertainty.
Confidence as Currency
Elkhan Salikhov, CEO of Elite Merit Real Estate, frames the trend clearly:
“Dubai remains closely linked to global capital cycles, yet its strong governance, dollar peg, and fully digitalised property systems continue to draw institutional investors from Europe and Asia seeking predictable value. In today’s environment, trust has become the ultimate currency.”
Cash transactions dominate not out of necessity, but because investors are signaling long-term commitment and trust in market structures. Off-plan projects with guaranteed yields further anchor this confidence.
Structural Discipline Shaping the Market
Dubai’s market demonstrates that stability is not accidental. Disciplined regulation, digitalised property systems, and transparency in transactions create predictable investment frameworks, which are increasingly valued by global institutional capital. Analysts expect that returning global liquidity in 2026 will support steady, sustainable growth, with confidence rather than leverage shaping the next investment cycle.
Dubai’s approach contrasts sharply with other global markets, where speculation often drives volatility. Here, liquidity, governance, and transparency form a triad that underpins market resilience, making Dubai a benchmark for investors seeking disciplined, reliable returns.
