Dubai’s real estate market is undergoing a major shift, as tenants increasingly consider buying homes in Dubai instead of renting. According to Reports, 55% of tenants now plan to purchase property within the next one to three years, up from 25% last year. Rising rents, accessible mortgage options, and long-term residency plans are driving this growing preference for homeownership.
Rising Rental Costs Drive Tenants to Buy
With average annual rents in Dubai reaching AED 99,000 ($26,963), tenants are facing affordability pressures. The report highlights that 69% of tenants would consider relocating if rents continue to rise. For many residents, buying property is becoming a strategic move to protect against recurring rent increases, offering financial stability and long-term security.
Mortgage Accessibility Supports Homeownership
Financial accessibility is a key factor in the shift toward ownership. 61% of prospective buyers plan to use mortgages, showing that competitive financing options are making property ownership more attainable. Ownership patterns are diversifying, with an even split between outright purchases and mortgage-backed acquisitions.
The average intended property value among prospective homeowners is AED 4.5 million ($1.23 million), reflecting confidence in Dubai’s property market and the ambition of buyers.
Long-Term Residency Encourages Investment
Dubai’s appeal as a long-term residence is driving tenants to invest in real estate. 59% of tenants plan to stay in the emirate for ten years or more, with an average intended stay of 11.2 years. Furthermore, 36% of respondents consider real estate a priority investment, highlighting the dual role of property as a home and a wealth-building asset.
Lifestyle Shifts Influence Housing Preferences
Lifestyle changes, including remote work and family growth, are prompting tenants to upgrade from apartments to larger townhouses and villas. This trend is creating strong demand for mid-market and family-oriented communities in established areas such as Dubai Hills and Dubai South.
Structural Changes in Dubai’s Property Market
Experts note that this is a structural shift, not a temporary trend. Rising tenant interest in purchasing is expected to:
- Boost demand for mid-market and family homes
- Increase mortgage activity and flexible financing solutions
- Encourage developers to offer diverse property types
- Pressure rental markets as tenants weigh lease renewals against homeownership
The report also highlights emerging interest in innovative property investment models, such as blockchain-backed fractional ownership. While only 6% of respondents have invested, 37% are aware of the concept, showing potential for future growth.
Ready to Make the Move from Renting to Owning?
Dubai’s real estate landscape is shifting fast, and many tenants are already turning rising rental costs into a long-term opportunity. If you are thinking about buying your first home or exploring smarter investment options, Binayah Properties can guide you with expert insights, accurate market direction, and tailored property recommendations. Your next step is simple. Reach out to our team, discuss your goals, and discover the best opportunities for property investment in Dubai available today.
