Report: Dubai real estate shifting towards more permanent residents

Par LISA KLEIN

A new report released by Dubai-based real estate firm Betterhomes reveals that the city’s population is continuing to shift from one of short-term expats and workers to a more permanent, home-focused community.

“Future Living: The Dubai 2024 Edition” explores this change attitude amongst residents, along with other key real estate trends, in the bustling United Arab Emirates city.

“When I first arrived in Dubai, I, like so many, viewed Dubai through the prism of a short-term experience – somewhere to work and live for two or three years, but ultimately somewhere to move on from,” said Richard Waind, CEO of Betterhomes, in the report.

“It is clear from the survey that the vast majority of residents, my own family included, no longer hold to this view. Dubai for so many of us is now somewhere we call home.”

Deeper roots

For the report, released last month, Betterhomes surveyed 1,612 Dubai residents.

Of that group, 77 percent are renters, while only 23 percent own a property. Rentals are particularly appealing to expats who may be in Dubai for a job, but don’t have long-term plans to live there.

Unsurprisingly, working-age Millennials and Gen X make up the vast majority of those living in Dubai, at 56 percent and 29 percent, respectively, their income rising with age.

However, it appears that Dubai is becoming a more permanent place to put down roots. Tenants of all ages showed a strong motivation towards homeownership, with lower-income brackets pointing to stability and higher-income brackets to investment opportunities as their reasons to buy.

Millennials make up the largest share of those planning to purchase a home in the next one to three years.

Desired amenities at home center around space, including guest bedrooms, walk-in closets, dedicated home offices and maid’s rooms. Top-requested community or building amenities are gyms, swimming pools, green spaces and children’s play areas.

Of all those surveyed, 72 percent have lived in Dubai for over five years and 89 percent plan to stay for more than five years.

This trend toward stability is shown even further by those who do already own property in the city: 25 percent have lived in their current home for more than 10 years, indicating an intent to remain more permanently.

With an average age of 45, current homeowners are even planning to invest more in their communities. Thirty-six percent expect to buy a second property in the next one to three years.

The report points to government benefits and initiatives, including zero income tax, a commitment to creating 20-minute communities and initiatives to attract foreign investment, as a draw for longer-term residents and a boon for home prices.

“Dubai’s unique blend of modern living, rich culture and welcoming spirit has continued to attract people from all over the world,” Mr. Waind said. “This report captures the shifts in how residents experience life here, from the way they live and work to how they embrace the future in one of the world’s most dynamic cities.”

The exclusive Emirates Hills mansion in the lead photo, with lake and golf course views, can be found here.