Home News Why more UAE residents are opting to buy apartments than rent them – News

Why more UAE residents are opting to buy apartments than rent them – News

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In the market, newly launched projects sold out quickly, and some of them sold out in a day.

Release: Monday, May 30, 2022 4:01 pm

Young and middle-aged residents who plan to stay in Dubai for a long time are increasingly choosing to buy rather than rent a property.

Real estate executives and analysts say this trend is primarily seen among office workers in their 20s, 30s and 40s who are investing to hedge inflation.

As a result, in recent markets, newly launched projects are sold out very quickly, some of which are sold out in a day.

In March, Danube Properties’ 300 million Dh Pearlz project sold out on the first day of its launch.

From 2021 to April 2022, homes by all major developers in Dubai were completely sold out and are now trading at a premium in the secondary market, according to a recent study by Real Estate Agent Union Square House.

Lizwan Sajan, Founder and Chairman of the Donau Group, said:

Sajan admitted that the project was sold out in a day due to the company’s attractive payment plans and affordable luxury development.

“Investors are so confident in Dubai that the project is sold out successfully, and the prices in the emirates are much cheaper than in other major cities,” he said, the company’s long-term payments. Buy properties, adding that planning will be easier for people as well.

The Gemz project at Furjan, newly launched by the Donau River, will provide 10% advancement, 1% per month and 5% after 6 months.

“This is one of the successful mantras of the Donau River property. My purpose is to turn people living in rental apartments into buying their own homes. And it’s the people here in Dubai for a long time. That’s because they’re staying for a while and they have savings. Anyone who earns over $ 20,000 can easily pay in installments and own an apartment in Dubai, “says Sajan.

According to him, about 70-75% of buyers are professionals in their 20s, 30s and 40s who already live in Dubai, and the rest are foreign investors.

Edward Macura, a partner at real estate consultancy Core, said residents with a long-term outlook have been more likely to seek purchases than rents over the past 12-18 months. “Because of the potential for rising prices, rising rents and rising interest rates, many are trying to hedge higher acquisition costs and climb real estate ladders by owning their own homes.”

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He said the interest of foreign investors has increased significantly in the last 12-18 months, while residents form a higher share of buyers. “Due to Dubai’s socio-economic position and a highly investor-friendly market, various real estate-related visa reforms have allowed more foreign investors to invest in Dubai in the short to medium term. I’m looking forward to it. “

According to Macura, most buyers are in the 30-40 age group.

Ayman Youssef, vice president of real estate company Coldwell Banker, said that in most cases population growth is driving demand for rent. “This is because when people move to Dubai, they prefer to rent real estate for a year or two before making a purchase decision,” Youssef said, and unplanned real estate buyer demand resides during resale. He added that he is coming equally between people and non-residents. It is dominated by residents.

He added that while the United Arab Emirates, India, Pakistan, China and the Middle East were the main markets, buyers from Europe, the United Kingdom, Germany, France and Russia have increased significantly.

“International clients prefer unplanned because it’s easier than getting a mortgage and it’s more comfortable to pay over three to four years. Many investors go to real estate to hedge inflation. We are investing, “Youssef added.

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