Why more Dubai tenants will become homeowners in 2023 and 2024

Why more Dubai tenants will become homeowners in 2023 and 2024

The trend of tenants in Dubai turning owners will continue in the second half of 2023 as well as in 2024 despite rental increases slowing down as expatriates are increasingly adopting a long-term perspective on Dubai.

Real estate industry executives say that despite global headwinds, Dubai’s real estate market has not only been resilient but has grown steadily, providing the confidence many people seek. For others, it instils a fear of missing out on the upside or simply being priced out completely. This encourages new homeowners who want to cash in on capital appreciation and also benefit from the rise in rental rates.

Industry players are confident that property prices in Dubai will continue to increase steadily, though at a slower pace, especially in the high-end market, in the mid to high single-digit rates. It is projected that Dubai’s residential property will be the fastest-growing market in 2024, making it an attractive proposition for tenants to switch to owners.

According to Knight Frank, property prices in Dubai grew 48.8 per cent over 12 months, 19 per cent in six months and 11.6 per cent in three months during the second quarter of 2023.

“In recent years, expatriate residents have started adopting a long-term perspective