Increase in Cash Purchases Share in Dubai Amid Rising Interest Rates, But Mortgages Remain Primary Financing Source for Deals

Casa Vista Development is strengthening its presence in the United Arab Emirates real estate market. Forty percent of the residential units in the AQUORA project, a landmark coastal development valued at 350 million dirhams located on the Dubai Islands, have already been sold. The official project presentation is scheduled for October 28, 2026, at Madinat Jumeirah.

This sales figure, confirmed by the developer, indicates buyer confidence in AQUORA and Casa Vista Development's commitment to creating a unique living experience. This commitment is supported by thoughtful architecture, high construction standards, and meticulous attention to detail.

The project's development occurs against a backdrop of global economic and geopolitical uncertainty, demonstrating sustained interest in residential complexes that combine attractive locations with a clear vision of quality and long-term value.

Casa Vista Development's strategy is based on extensive experience gained by the founding family. Since 2012, the family business has encompassed trade, commodities, logistics, construction, and real estate, providing practical insight into project execution, market dynamics, and the creation of long-term value.

Since 2015, the group has expanded its activities to strategic real estate investments in various areas of Dubai and selected international markets, developing expertise in asset quality, location selection, and development potential.

Casa Vista Development was subsequently established to bring this practical commercial and construction knowledge into meticulously designed homes. Central to its mandate remain craftsmanship, uncompromising quality, and precision execution, aimed at creating long-term value through design-led development.

Abdul Basit, Chairman of Casa Vista Development, noted that the response to AQUORA is an important endorsement of the values upon which Casa Vista Development is built. He emphasized that the company's focus has always been on creating an exceptional living experience, underpinned by quality, trust, and long-term commitment. Seeing that 40 percent of the housing has been sold before the presentation, he viewed it as an encouraging reflection of buyer confidence. Nevertheless, he stated that the company's ambitions are much broader, and they aim to strengthen their presence in the UAE through a portfolio of carefully planned projects that will meet established standards.

Located on the Dubai Islands, AQUORA's architectural design is based on the philosophy of 'Form follows flow,' drawing inspiration from the movement, balance, and tranquility of water. The project occupies a plot of 50,000 square feet and has a total built-up area of 242,000 square feet. It includes 105 coastal residential units and six coastal retail spaces.

The residential complex offers over 20 leisure and wellness amenities, including a 22-meter rooftop pool, a Technogym fitness center, a yoga studio, a Zen garden, a pickleball court, concierge services, and a signature arrival experience.

Beyond the architectural expression, AQUORA was conceived as a holistic approach to living in a residence, integrating comfort, privacy, well-being, and construction quality to ensure an exceptional experience for future residents.

Casa Vista Development will host an exclusive presentation of AQUORA at Madinat Jumeirah on October 28, 2026, inviting dignitaries, esteemed guests, investors, valued partners, and media representatives. This evening will focus on the project's architectural philosophy and the company's vision for elite waterfront living, inspired by AQUORA's connection to water.

This event also marks an important milestone in Casa Vista Development's long-term plans, as it has several additional residential projects in its portfolio, and further announcements are expected as the company expands its presence in the UAE. The planned completion date for AQUORA is the first quarter of 2028, connecting years of business and investment experience with the developer's drive to create exceptional places to live.

Thus, AQUORA represents not merely a commercial milestone or an architectural statement, but a reflection of Casa Vista Development's determination to establish a solid reputation for quality, trust, and excellence in the UAE real estate market.

According to a report by the consulting company Anarock, housing sales in Dubai South in the first eight months of 2026 exceeded any previous year's figures, reaching 12,428 transactions. This represents a 27% increase compared to the 9,788 transactions registered throughout 2025. The growth is attributed to buyers increasingly preferring more compact living spaces.

Dubai South is a planned urban and economic district spanning 145 square kilometers, located in the southernmost corridor of Dubai, UAE. Development is centered around Al Maktoum International Airport and is divided into six zones: residential, logistics, aviation, exhibition, gold, and business.

Sales Trend Analysis

Ayush Puri, Head of Residential Real Estate, Middle East, and Co-founder of Anarock Channel Partners, noted that Dubai South has already surpassed its annual housing sales volume for 2025 in just eight months. He emphasized that the key shift is in the type of property being acquired: studios and one-bedroom apartments now account for about three-quarters of all deals. Budget-friendly apartments have become the main driver of activity, expanding the area's appeal beyond larger homes that fueled its earlier growth.

In terms of value, residential transactions in the region during the first eight months of 2026 amounted to AED 15.9 billion (or INR 41,117 crore), which is equivalent to 81% of the total volume from the previous year of AED 19.6 billion (or INR 50,686 crore).

Over the past few years, the region has shown multiplefold growth: the annual value of residential sales increased from AED 0.72 billion (or INR 1,862 crore) in 2020 to AED 19.6 billion in 2025, representing a 27-fold increase. During the same period, the number of transactions grew from 672 to 9,788.

The report revealed a sharp shift towards smaller apartments: studios accounted for 45% of transactions in January-August 2026, more than double their share of 19.5% in 2025. One-bedroom apartments added another 31%, bringing the combined share to approximately 76%. Overall, apartments made up 94.5% of the residential sales volume, compared to 31% in 2020.

The average housing price in January-August 2026 was AED 1,656 (or INR 42,836) per square foot, whereas in 2020 it was AED 650 (or INR 16,809). However, the average deal size decreased to AED 1.28 million (or INR 3.31 crore) compared to the peak of AED 2.57 million (or INR 6.65 crore) in 2023.

The consulting firm explained this decrease as a change in the structure of offered products and increased demand for more affordable and smaller units, rather than a broad correction in real estate prices. Puri clarified that a lower average purchase size does not necessarily mean a lower price per square foot, as the central point is the change in product assortment. He also added that a lower average deal size should not be mistaken for a market price correction, noting that the market is in a 'launch and absorption' phase, and the ready and secondary housing segments are not yet mature.

The report showed that the share of off-plan sales in residential transactions in January-August 2026 was 94%, higher than the 73% recorded in 2020.

Infrastructure Support and Rental Market

Demand is supported by infrastructure development. The master plan for Dubai South anticipates accommodating around one million residents and 500,000 jobs upon full completion. In April 2024, an expansion of Al Maktoum International Airport was approved at AED 128 billion, with the first operational phase scheduled for 2032. The airport is expected to handle 260 million passengers and 12 million tons of cargo annually.

The rental market in the area has also expanded: the average annual rent rose from AED 34,534 (or INR 8.93 lakh) in 2020 to AED 82,063 (or INR 21.22 lakh) in January-August 2026. The volume of rental transactions increased fourfold compared to 2020 levels.

Land sale data also indicates the stability of the launch pipeline. The value of commercial deals increased from AED 0.06 billion (or INR 155 crore) in 2020 to AED 5.46 billion (or INR 14,120 crore) in 2025, with land accounting for 97% of the total volume in 2025. In the first eight months of 2026, developers acquired an additional AED 2 billion (or INR 5,172 crore) in land.

Looking ahead, the report points to 38,116 units planned for delivery between 2027 and 2029, more than 3.5 times the 10,813 units delivered from 2016 to 2026. The peak delivery is expected in 2028 with 16,094 units. Although the region remains an attractive investment destination, Puri warned that the 'concentrated delivery period will test the market's absorption capacity, requiring sustained demand to meet supply.'

At the current sales pace for January-August, the report forecasts an annual figure for 2026 of approximately AED 23.9 billion (or INR 61,805 crore).

The owner of property in Dubai who has an outstanding mortgage loan and plans to sell the real estate before returning to their home country needs to know the relevant rules. The question arises whether the buyer can take over the remaining mortgage debt, if bank approval is required, and what the legal procedure is for transferring ownership and settling or transferring the loan.

According to Dubai legislation, since the property is located in Dubai, the Dubai Mortgage Law applies. The seller (mortgagor) is permitted to sell, gift, or otherwise dispose of the mortgaged property, or create any rights on it, only upon obtaining the consent of the mortgagee and provided that the buyer agrees to assume all the seller's obligations under the mortgage agreement. The mortgagee also has the right to stipulate that the seller and buyer will jointly be responsible for these obligations. This corresponds to Article 10 of Dubai Law No. 14 of 2008 on Mortgages in the Emirate of Dubai.

There are two main options available to consider.

Option 1: Selling the Property by Settling the Existing Mortgage

The property can be sold, and the proceeds used to fully repay the existing mortgage loan. The general sequence of practical steps is as follows:

1. Obtain a Letter of Obligation from the Bank: It is necessary to request a document confirming the outstanding loan amount and the required amount to close the mortgage, including any applicable early repayment fees or other payments.
2. Agree on Sale Terms: A sales contract is concluded with the buyer, taking into account the existence of the mortgage, and the repayment of the loan amount is arranged.
3. Registration of the Transaction with the Dubai Land Department (DLD): DLD provides a service called 'Registration of Sale of Mortgaged Property'. Under this service, the seller and buyer visit the Real Estate Registration Centre office with the necessary documents. The transaction is first registered to protect the interests of both parties while the mortgage repayment process is underway.
4. Repayment of the Outstanding Loan: The DLD procedure involves the use of manager's cheques, including a cheque in favor of the bank for the debt amount and a cheque in favor of the seller for the remaining sale amount, if any. After this, a letter from the bank confirming the release of the mortgage is obtained.
5. Completion of Ownership Transfer: After the DLD provides the mortgage release letter, it finalizes the registration procedures for the sale and the removal of the mortgage. If the buyer is obtaining a new mortgage, the corresponding financing and mortgage registration procedures must be completed.

This procedure is particularly relevant if the buyer pays for the purchase with their own funds or receives separate financing, and the seller's existing loan is settled using the sale proceeds. Exact documents and payment terms should be agreed upon with the bank and the Real Estate Registration Centre before completing the transaction.

Option 2: Transferring Existing Mortgage Obligations to the Buyer

Alternatively, permission can be requested from the bank for the buyer to assume the current mortgage obligations, if they are willing. In this case, you must approach the bank with a proposal for the deal and request confirmation on whether the buyer can take over the existing loan. The bank may assess the buyer's financial situation and require updated or replacement financing documentation. Any transfer of ownership and associated mortgage obligations must be documented and registered in accordance with bank approval and DLD requirements.

Based on the above provisions and procedures, the possibility of selling the property before returning home can be considered. The most suitable path will depend on whether the bank allows the buyer to assume the existing loan or requires the loan to be repaid using the sale proceeds. Written confirmation from the bank regarding the proposed procedure should be obtained, and actions should be coordinated with the DLD or the Real Estate Registration Centre to finalize the transaction.

For further clarification, it is recommended to contact your mortgage lender and the DLD.

Applicable Provision: Dubai Law No. 14 of 2008 on Mortgages in the Emirate of Dubai.