UAE property: Rising rents, residency options drive young buyers to own homes

A growing wave of young professionals is entering the UAE property market, with experts reporting a marked rise in buyers aged 25 to 35 who are purchasing homes.

The shift is being driven by rising rents, mortgage payments that increasingly match leasing costs, clearer long-term residency pathways like the Golden Visa, and the appeal of ownership as a potential income-generating asset.

There’s been a noticeable increase in buyers under 35 that are entering the market, especially in Dubai,” said Ismail Al Hammadi, founder & CEO of IAH Group. “The idea of homeownership has become a part of the younger generations’ long-term financial thinking.

Developers echo the trend. Navneet Mandhani, founder of Karma Developers, said first-time and end-user activity has intensified among those “in the 28–45 bracket, with meaningful growth among early-career buyers in their mid-20s to early 30s". He attributes this to Dubai’s favorable initiatives for homeownership, strong market momentum, and the city’s reputation for safety, lifestyle quality, and cultural diversity.

Government reforms

Experts say transparency measures, streamlined digital processes, and residency-linked property pathways have helped younger residents view real estate as an achievable early-life milestone.

Al Hammadi noted, “Many of them are well educated and globally exposed and see real estate as a stable asset compared to other high-risk investments. The government’s continued push for transparency and digital services has also made the process much less intimidating for first-time buyers.

Renting vs buying

Strong rental increases have pushed many residents to compare rent with monthly mortgage payments—and many are choosing ownership.

“Financial pragmatism is driving the shift,” Mandhani said. “Rising rents and strong yields have led many young buyers to weigh mortgage costs against rent, making ownership feel more predictable over a 5-10-year horizon.”

For many, the numbers simply make more sense.

Buying makes more sense today than renting in many areas of Dubai, especially when mortgage payments match or even fall below rental costs,” Al Hammadi said.

Mandhani said ownership is also increasingly viewed as a way to build longer-term financial resilience. “It also offers potential income streams and access to quality housing at far more affordable levels than in other global cities.”

Many are also buying with investment optionality in mind. “Many of these young buyers aren’t buying to live,” Al Hammadi said. “They look for properties that can be easily rented out or resold if their circumstances change.”

Lifestyle motivations

While finances are a key catalyst, younger residents are also seeking stability, identity, and long-term roots in the UAE.

Young professionals now want to feel like they have roots and want spaces that reflect their independence and aspirations, Al Hammadi said. They’re also looking at property ownership as a mark of stability and achievement.

Mandhani said lifestyle considerations are reinforcing—but not replacing—financial drivers. “Lifestyle factors (visa reforms, maturing communities, and upgrades in sustainability and smart-city living) add appeal, but the rent-versus-buy equation remains the main catalyst. Stabilized prices and strong momentum into 2025 further reinforce confidence in long-term ownership.

Yogesh Bulchandani, CEO & Founder of Sunrise Capital, said emotional fulfillment is also playing a growing role. “Younger buyers seek the emotional fulfillment that comes from having a personal space—a true home—alongside the flexibility that ownership provides.”

What are they buying?

Across all three experts, one pattern is clear: young buyers are choosing smaller but well-located homes that balance affordability, lifestyle, and future flexibility.

Studios and one-bedroom apartments remain the most common entry point, particularly in well-connected or emerging communities where prices remain more accessible. There is also growing interest in townhouses among young couples and new families seeking more space while staying within city limits.

A trend set to grow

Industry leaders say the 25–35 age group is expected to drive the next phase of market growth, shaping demand patterns and influencing how developers structure future projects.

We are witnessing a significant influx of young buyers,” Bulchandani said. “Dubai’s upcoming phase of real estate growth will hinge on affordability and accessibility, which positions the 25 to 35 age range as a key demographic for this shift.