Dubai Real Estate Market to Surge as Renters Shift Towards Homeownership

New research highlighted by Betterhomes revealed in the recent market analysis of Dubai real estate market, predicts huge growth for the sector within five years due to higher tenancy for house owning. According to the report, 66 percent of renters who participated in the survey said they are set to purchase homes in the next half year due to rising rent levels and expectation of further hikes.

As mentioned in this study millennials in the age of between 28 and 43 years are followed by generation X of between 44 and 59 years. These prospective homeowners are mostly driven by the need for security, more space in their houses, and short distances to be travelled to get to their workplaces. Some of the well known districts that are obtainable for investments are Dubai Hills Estate, Dubai Marina, Downtown Dubai, Business Bay and Arabian Ranches.

The same report also shows that the majority of the buyers, those with income less than or equal to AED 50,000 per month, cannot be considered as high er income earners, they are however keen to invest in property as the market in Dubai progresses. On the other hand, investors opt for it so as to get the needed capital appreciation.

Properties in Sub-Saharan Africa are set to experience a 5-10% increase in the one year period, which has seen tenants scrambling to acquire homes before the costs go up. Also, the significantly larger square footage with more rooms such as guest or study Accommodation that is becoming a new norm is compelling renters to join the homeowner bandwagon. The direction is likely to help ramp up the property market in Dubai since renting has become the priority of many people who seek stability and long-term investments instead of rental housing.