Why More Families Are Switching from Renting to Buying in Dubai

The UAE is changing fast, especially with all the families moving towards homeownership, since rents keep increasing, the price of living is becoming more affordable long-term, and because families want a stable lifestyle. There are master-planned developments in place that give families more options when it comes to financing. The movement to purchase also reaffirms confidence in Dubai's real estate market as a whole.

As the population continues to increase rapidly and the city is completing numerous infrastructure projects, families are beginning to feel that buying a home is a sustainable decision and will also be an investment for their future.

Rising Rental Prices Leads Family Towards Owning

Because rent is increasing in all major family markets in Dubai, so has the gap between renting vs owning become much smaller. Key reasons why families are reacting to the rising rent costs:

• Annual rent increases are higher than 10-20% in many family locations
• In some cases, mortgage payments are equal to or less than rental payments for the year
• Families prefer having fixed costs for housing vs being unstable in terms of rent increases.

As a result, families are now considering buying a home as part of their personal financial planning in addition to being an property investment in Dubai instead of just a temporary expense.

Flexible Mortgage Plans Help Families

Everyday financial institutions have enhanced the loan application process enabling families who have previously been renting to become homeowners. Frequently used financial products that incentivize purchasing include:

• 20% as a required minimum down payment
• 25-year fixed-rate mortgage
• Very competitive interest rates versus other cities within the world
• Unique mortgage programs available exclusively for first-time buyers

These types of mortgage alternatives will continue to lend their support towards helping maintain the affordability and longevity of Dubai’s real estate industry.

Stable Housing Expenses for Sustainable Living

Once a family purchases their own home, they will be less vulnerable to a sudden need to relocate and pay a sudden rent increase that may not have been communicated prior to the move. Purchasing a home provides homeowners with complete autonomy and control over their environment, and thus, creates a future not only for the homeowner but for future generations of the homeowner’s lineage to come.

This stability is also why families elect to depend on real estate brokers in Dubai to assist them through the transition from a rental situation to a home of their own.

Master Planned Communities with Quality Lifestyle

Dubai’s modern developments are increasingly being developed to provide families with high quality lifestyles through world-class infrastructure. Families often place priority on the following in purchasing their home:

• Proximity to schools, nurseries, and clinics
• Abundant parks and playgrounds, paths and bike paths
• Community centres, fitness zones, and neighbourhood retail centres
• Safe design/environment that allows for ease of walking

Examples of communities that promote long-term real estate investments include: Business Bay, MBR City, Dubai Hills Estate, Tilal Al Ghaf, Town Square, and Mudon.

Long-Term Investments and Future Security in Dubai

Dubai properties consistently experience strong long-term value appreciation driven by sound regulations, increased population, and government developmental strategies. Families purchasing homes today are not only purchasing a residence; rather, they are building their financial future security.

Many communities developed by Dubai properties have exhibited strong resale prospects due to quality of planning, good infrastructure, and strategic location.

Long-Term Visa Options for Permanent Residency

The long-term visas of the United Arab Emirates give individuals and their families certainty to continue their employment, put their children in school and prepare financially for the future while living and working in Dubai without the need to leave their homes.

This new long-term residency option has created an environment of growth within the Dubai real estate investment, as families move away from temporary rentals and become permanent residents.

Spacious Family Homes Continue to Increase

As developers realise that the demand for homes is growing, they are increasingly focusing on building large family-oriented villas, townhomes, and apartments. These new developments will feature new designs, additional kitchen space, storage room and community features.

The move towards owning versus renting in Dubai has created a very high level of interest in properties for sale in Dubai due to the advantages of owning property over paying rent long term.

Buying Property for Your Family's Future

The view of home ownership has changed for many families. The "generational" value of owning real estate has become more pronounced over the past few years, with many families believing that where you live will be passed down to your children and contribute towards the growth of their family's wealth. Therefore, purchasing real estate in Dubai will provide families with a solid foundation for the future and increase financial security for generations to come.

The Shift Towards Home Ownership Continues

As rents continue to rise and new communities evolve and offer better access to mortgages, families in Dubai have shifted toward ownership of real property. Purchasing real estates today allows families greater flexibility with their finances, improved comfort and stability within the community, and most importantly provides a greater sense of security for their future. With Dubai transforming into a family-friendly global city, this upward trend in family homeownership will continue to accelerate as the community continues to become more family-oriented.