According to a recent Betterhomes poll, individuals’ preferences are changing, and the real estate market in Dubai is proliferating.
The Future Living: Dubai 2024 Edition report surveyed 1,612 respondents and showed that 72% expect property prices to rise over the next 12 months.
“Dubai for so many of us is now somewhere we call home. A city we have put down roots, opened businesses, grown families and bought homes. This dramatic change is reshaping the real estate landscape of Dubai and gives me tremendous confidence for the future sustainability of our market,” Richard Waind, CEO of Betterhomes said.
Millennials drive Dubai’s real estate market growth
According to the survey, 79% of participants are long-term renters, making up 77% of the sample.
Meanwhile, among 23% of property owners, 53% own their homes outright, while 47% have mortgages.
Millennials, aged 28 to 43, represent 56% of all respondents and are the key drivers of demand in both rental and homeownership markets.
“As Dubai grows and continues to evolve, our commitment is to provide the most accurate and relevant information supported by primary data. We aim to empower our clients, partners, and stakeholders with the knowledge needed for informed decision-making, driving innovation and maintaining leadership in the real estate sector,” Louis Harding, Managing Director at Betterhomes added.
Shifting housing preferences and market trends
The report highlights a shift in housing preferences based on income levels. For tenants with lower to moderate incomes, apartments continue to be the most popular choice, but townhouses and villas are becoming more and more sought-after for those with higher incomes.
The average rent-to-income ratio in Dubai stands at 30%, which is competitive compared to other global cities. However, 55% of tenants expect their rents to rise by 5-10% during their next lease renewal.
The survey also reveals that 36% of homeowners plan to purchase an additional property for investment within the next 1 to 3 years. The trend is more noticeable among individuals with higher incomes.
Also Read: Buy Townhouses in Dubai: An Ideal Investment for 2024-2025
The future outlook for Dubai’s real estate market
“Dubai’s resilience and adaptability are reflected in its people. As the market shifts, so do the aspirations and investments of its residents, ensuring a bright and dynamic future,” Aishwarya Lalchandani, Senior Market Research Analyst at Betterhomes said.
The Real Estate Evolution Space Initiative (REES) of the Dubai Land Department and the city’s AED 25 billion Foreign Direct Investment initiative are mentioned in the research as contributing to the market’s promising future.
