New research highlighted by Betterhomes in a recent Dubai real estate market analysis predicts significant growth for the sector within five years, driven by a major shift from renting to homeownership. According to the report, 66 percent of renters surveyed said they plan to purchase a home within the next six months, citing rising rent levels and expectations of further increases.
Why Dubai Renters Are Choosing to Buy
The study identifies millennials — aged 28 to 43 — as the leading cohort of prospective buyers, followed closely by Generation X, aged 44 to 59. These buyers are primarily motivated by the desire for financial security, more living space, and shorter commutes to work. Top neighbourhoods identified for investment include Dubai Hills Estate, Dubai Marina, Downtown Dubai, Business Bay, and Arabian Ranches.
Moderate-Income Buyers Enter the Market
The report also reveals that the majority of buyers earn AED 50,000 per month or less — placing them outside the high-income bracket — yet they remain motivated to invest as Dubai's property market continues to grow. Higher-income buyers, by contrast, are largely driven by the opportunity for capital appreciation.
Property Values Expected to Rise 5–10%
Property prices are forecast to increase by 5 to 10 percent over the next year, prompting many tenants to move quickly before costs climb further. A growing preference for larger homes — with additional rooms for guests or a dedicated study — is also drawing renters into the ownership market.
This trend is expected to sustain strong momentum in Dubai real estate, as more residents pursue stability and long-term investment over continued renting.
