The Future Living: Dubai 2024 Edition report, which gathered feedback from 1,612 participants, indicates that 72% anticipate property prices to increase over the coming year.
A recent survey by Betterhomes highlights the strong growth and changing preferences within Dubai’s property market.
According to the Future Living: Dubai 2024 Edition report, 72% of the 1,612 respondents predict that property values will go up within the next 12 months.
“Dubai has become a place many of us now call home. It’s a city where we’ve set roots, started businesses, raised families, and invested in real estate. This significant transformation is redefining the local property market and fills me with great optimism for its future sustainability,” noted Richard Waind, CEO of Betterhomes.
Millennials Lead the Charge in Market Expansion
The survey found that 77% of respondents are renters, with 79% choosing long-term leases.
Meanwhile, out of the 23% of respondents who own property, 53% own their homes outright, while 47% have financed them through mortgages.
Millennials, defined as those aged 28 to 43, account for 56% of the total respondents and are the primary drivers of demand in both the rental and homeownership segments.
“As Dubai continues to expand and change, our goal is to offer the most precise and relevant insights backed by primary data. We aim to empower our clients, partners, and stakeholders with the knowledge necessary for informed choices, fostering innovation and preserving our position as industry leaders,” stated Louis Harding, Managing Director at Betterhomes.
The report also shows that housing choices are shifting based on income brackets. Apartments remain the top choice for low to mid-income tenants, whereas villas and townhouses are increasingly sought after by mid to high-income groups.
The typical rent-to-income ratio in Dubai is around 30%, which is competitive when compared to other major cities globally. However, 55% of tenants foresee their rents rising by 5-10% during the next lease renewal.
Additionally, the survey reveals that 36% of homeowners plan to invest in a second property within the next 1 to 3 years, a trend particularly evident among higher-income respondents.
“Dubai’s strength and adaptability are evident in its residents. As the market changes, so do the aspirations and investments of the people living here, ensuring a vibrant and prosperous future,” commented Aishwarya Lalchandani, Senior Market Research Analyst at Betterhomes.
The report also references the Dubai Land Department’s Real Estate Evolution Space Initiative (REES) and the city’s AED 25 billion Foreign Direct Investment program as contributing factors to the market’s optimistic outlook.
