UAE Property: Rising Rents Push Young Buyers to Own Homes

A growing number of young professionals are entering the UAE property market, with industry experts reporting a rise in buyers aged 25 to 35.

The trend is particularly visible in Dubai, where rising rents, mortgage payments that increasingly match rental costs and clearer residency options are encouraging more residents to consider owning homes.

Experts also point to the appeal of property ownership as a potential income-generating asset.

Ismail Al Hammadi, Founder and CEO of IAH Group, said there has been a noticeable increase in buyers under 35 entering the market, especially in Dubai.

He said homeownership has become part of the younger generation's long-term financial thinking.

Young Buyers Compare Rent With Mortgage Costs

Rising rental costs are prompting residents to compare monthly rent with mortgage payments.

Navneet Mandhani, founder of Karma Developers, said rising rents and strong yields have led young buyers to assess mortgage costs against rent over a five to 10-year period.

Al Hammadi said buying can make more sense than renting in many areas of Dubai when mortgage payments match or fall below rental costs.

Some young buyers are also considering the future flexibility of their properties, including the option to rent them out or resell them if their circumstances change.

Residency Options Support Property Ownership

Industry experts said government measures, streamlined digital processes and residency-linked property pathways have made real estate more accessible to younger residents.

The Golden Visa is among the residency options cited as a factor supporting the shift towards ownership.

According to Al Hammadi, greater transparency and digital services have also made the homebuying process less intimidating for first-time buyers.

Young professionals are described as globally exposed and increasingly interested in property as a stable asset.

Smaller Homes Remain the Main Entry Point

Experts said young buyers are generally choosing smaller, well-located homes that balance affordability, lifestyle and future flexibility.

Studios and one-bedroom apartments remain common entry points, particularly in well-connected or emerging communities where prices are more accessible.

Townhouses are also attracting interest from young couples and new families seeking additional space while remaining within city limits.

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Lifestyle Factors Also Influence Demand

Financial considerations remain a key driver, but lifestyle factors are also supporting homeownership decisions.

These include the desire for stability, personal space, long-term roots and homes that reflect individual independence.

Yogesh Bulchandani, CEO and Founder of Sunrise Capital, said younger buyers are seeking the emotional fulfilment associated with having a personal home while retaining the flexibility that ownership can provide.

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25–35 Age Group Seen as Key Buyer Segment

Industry leaders expect buyers aged 25 to 35 to play an important role in the next phase of UAE property market growth.

Developers are expected to pay greater attention to affordability, accessibility and housing formats that suit younger buyers.

According to Bulchandani, affordability and accessibility will be important factors as Dubai's real estate market enters its next phase of growth.

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