UAE's Real Estate Shifts to Ownership Trend

Rent or Buy? First-Time Buyers Propel UAE's Market Toward Ownership

The United Arab Emirates real estate market is clearly at a turning point. While renting previously dominated housing market decisions, in 2025, more residents are opting for homeownership, especially in Dubai and Abu Dhabi. Long-term settlement plans, favorable government programs, and increasing incomes collectively result in real estate purchases becoming not just a dream but a realistic and increasingly common life strategy.

Trend Towards Ownership

According to recent data from Property Finder, in 2025, clicks on sales listings make up nearly half of all platform activity, while searches for rentals show a decline. This shift is particularly noticeable within Dubai: 70% of users plan to buy a home within the next six months. This is not just a market interest but a true commitment to long-term settlement.

A similar trend is seen in Abu Dhabi: the proportion of searches with the intent to purchase increases year by year, and housing market activity is increasingly shifting towards sales. This trend indicates that more and more local and foreign residents consider the UAE as their long-term home.

Government Support and Long-term Visas

Within Dubai, government policies are also supporting this trend. Long-term residency permits, property-linked visas, and the 'First-time Home Buyer Program' have enabled thousands of residents to enter the real estate market. Such initiatives not only increase demand but also create stability for the market.

While first-time buyers form the backbone of new interest, many existing owners also decide to swap their current home for larger, higher-quality properties. This is a sign that residents are planning for the long term and have confidence in the country's economic and social future.

Incomes and Commitment: More Money, Higher Standards

Buyer behavior is also transforming. Compared to 2024, when people spent an average of 23% of their income on mortgages, in 2025, this ratio has risen to 31%. This is a clear indication that buying a home has become a priority. Demands are also increasing: there is a growing demand for premium and spacious homes, particularly among families.

Apartment or Villa? The Dichotomy of Supply and Demand

Apartments still dominate transaction volumes, mainly due to broader supply and price accessibility. However, villas—especially within Dubai—are showing faster price increases due to their limited number. This segment is more attractive to those with more stable financial backing, who seek larger and more exclusive homes.

A similar process is unfolding in Abu Dhabi: demand for apartments remains dominant, but more buyers are seeking family homes in the villa segment, reflecting a qualitative change in demand.

Buying Property as a Lifestyle Choice

In both emirates, it's observed that buying a home is not merely a financial investment but also a lifestyle decision. People view property as a home, not just a financial asset.

This mindset shift is strongly shaping the market, and developers are responding: more projects offer high-quality homes and villas with comprehensive amenities.

Popular City Districts and New Projects

Within Dubai, well-established communities such as Downtown Dubai, Dubai Marina, Palm Jumeirah, Business Bay, JVC, JBR, and Dubai Hills Estate continue to enjoy great popularity. Newer developments, like Dubai Islands or Maritime City, attract buyers, especially for waterfront and luxury properties.

Buyers are planning not only for their current life situation but also for their future—considering factors like children, job opportunities, schools, and transportation infrastructure.

Young People at the Forefront

The age group of 25–35 has become the new driving force of the real estate market. For this generation, renting is no longer the natural choice; conscious ownership is part of long-term financial planning. This demographic group is not only demanding but also sensitive to value for money and enters the market with serious expectations.

Summary

The UAE real estate market is undergoing transformation: many are transitioning from renter status to ownership. Long-term housing plans, favorable state measures, and economic stability all contribute to making home buying not just an option but a logical next step in the lives of local residents. Within Dubai, the trend is particularly striking, but Abu Dhabi is also following the example, moving the UAE housing market increasingly towards a sustainable ownership model.