The study found that the expectation of rising property prices in Dubai is a major factor prompting tenants to buy homes as soon as possible.
Developers in Dubai may see an increase in property demand soon, with 66 percent of tenant respondents in a market study indicating plans to purchase homes in the city within the next six months.
Additionally, many investors are also looking to acquire more properties in Dubai for capital growth.
For low- to middle-income tenants, the main motivations to buy homes are rising rents and the desire to own a home, while capital appreciation is the sole motivator for high-income investors, according to a survey by Betterhomes.
Millennials make up the largest group of new potential homebuyers, with 56 percent aged 28 to 43 looking to buy homes, followed by 29 percent of Gen X buyers aged 44 to 59.
A strong desire for tenure security, more space, and shorter commutes is pushing tenants in Dubai to seek out their own “dream homes” as soon as possible.
Top neighborhoods like Dubai Hills Estate, Dubai Marina, and Downtown Dubai are the most preferred by investors and tenants, followed by Business Bay and Arabian Ranches.
Interestingly, most of the prospective buyers (66 percent) – including both investors and tenants surveyed in the Betterhomes study – earn below AED 50,000 per month.
The average monthly household income for investors is AED 45,616, while tenants earn an average of AED 32,303.
The fear of rising prices, need for space, and desire for security lead to homeownership.
The study revealed that the anticipation of further increases in Dubai’s property prices is driving tenants to buy homes as early as possible.
A significant portion of tenants – 42 percent – expects house prices to rise by 5-10 percent over the next 12 months, while 30 percent fear an increase of more than 10 percent.
Only 10 percent of prospective investors believe prices may decline slightly or by more than 10 percent within the year.
Betterhomes’ study highlighted that tenure security, more living and storage space are primary motivations for renters looking to purchase homes.
“Security, space, and speed are the three main reasons cited by prospective buyers currently renting,” said Richard Waind, CEO of Betterhomes.
Buyers also seek properties with more bedrooms, including guest and maid rooms, walk-in closets, work or study areas, fitness amenities, pools, children’s play areas, and green spaces in the community.
Shorter commutes prompt home purchases in Dubai.
The study also noted that shorter commuting times to workplaces and essential locations like schools and shopping areas are strong reasons for prospective buyers to consider purchasing homes.
Sixty percent of tenant-buyers are looking for properties within a 15–30-minute commute to work.
“Twenty-three minutes is the average commute time prospective buyers prefer,” Waind said.
“Though, this may not always be feasible in a city like Dubai,” he added.
Millennials also express a need for more storage space as they find rented accommodations to have limited storage.
Betterhomes reported that a substantial majority of prospective buyers – 72 percent – have lived in Dubai for over five years, and even more – 89 percent – intend to remain for at least another five years.
