For quite a long time, the rental market was the mainstay of Dubai’s property sector until the arrival of the freehold era, which opened the opportunity for people to invest in their own homes and build a sense of belonging.
Such developments were regarded for quite a while as inaccessible to the majority, especially middle-income professionals, the market dynamics have now changed considerably.
More developers, including those who focused on premium projects, are offering investment propositions that enable more people, including the mid-income segment, to scale up their lifestyle and move from rental living to owned homes.
This also reflects the vision of the government to establish Dubai as the best place to live, work and visit, as outlined in the Dubai Plan 2021.
Market analysts cite that the millennials are now shaping real estate demand, driven by affordability and a desire to invest in homes as a long-term value proposition.
Catering to the new generation of investors, more developers are offering innovative products such as co-living and co-sharing communities in addition to easy installment plans and convenient mortgage solutions.
Investing in one’s own home, indeed, makes business sense. Money that is otherwise set aside for rents – which is a ‘dead investment’ – can be effectively channeled to pay mortgages through proper financial planning.
Secondly, with rental figures set to increase in the medium to long-term, the more one opts to be a tenant, the longer he or she will be spending on housing, which yields no return.
There are several communities in Dubai that are focused on enabling the shift from rental living to owned homes, in addition to governmental initiatives such as long-term visas for professionals and extended visas for retirees who invest in property.
However, what is crucial in any investment decision is to evaluate the market, ascertain the delivery credentials of the developer, and choose the location carefully so that you not only live in a central community with all the amenities but also stand to gain from higher return in the long-run.
With the strong incentive of converting the money spent on rent into a stable and secure investment, investing in property to live-in also assures a shift in your lifestyle. Go for owned homes to leverage the potential of the property sector, which assures stable returns in a market such as Dubai that has strong fundamentals for sustained growth.