Higher rents, cheaper properties: Here’s why tenants in UAE are increasingly becoming owners

Higher rents, cheaper properties: Here’s why tenants in UAE are increasingly becoming owners

Dubai-based businessman Najam-us-Saqib bought a studio apartment in one of the affordable areas on the outskirts of Dubai. He has rented it out and now he is staying in the Al Qusais area in a rented apartment. He has opted for this choice because his children’s schools and his office are nearby.

Najam is among thousands of residents who turned tenants into owners, saving not only thousands of dirhams on rent but also seeing capital appreciation due to high demand amidst the increasing population, especially the inflow of millionaires in the past two years.

Dubai’s property market has witnessed unprecedented demand, driven by both residents as well as foreigners. Though, foreigners are said to be dominating the sales, residents are increasingly turning from tenants to buyers, attracted by various factors such as ready-to-move-in properties, higher returns on investments, savings on rents, increased population and higher salaries.

“These are very exciting times for developers and investors in Dubai because confidence is very high. Unlike the 2008-09 boom, this time investors and residents are not flippers but end-users – who either want to buy and rent it out or want to stay here,” says Rizwan Sajan, chairman and founder of Danube Properties, a leading private