The Dubai Land Department recently released a report saying that asking Dubai rents saw annual declines of 10.5 per cent. Great news for many residents, however Arab millennials are looking to own property.
The BNC Network, an information exchange platform on construction, said that the top 10 ongoing residential building projects in the UAE are worth $21.6 billion to the local construction market.
Millennials are going to jump all over these, if developers are smart enough to notice trends, behaviors and social characteristics of Arab millennials, who make up half of the population in the Middle East.
For millennials to be successful business owners, they want to live in a successful development. They will buy from credible and successful developers. This is why developers must prepare themselves and build a loyal customer base that will allow them to grow. If taken into consideration, we are likely to see a positive shift in the Arab housing market.
The below report sheds light on this and has been provided by Mohamad Rabih Itani, Managing Partner, Property Insider.
Who are Arab Millennials?
Today’s young Arabs, who belong to the 18-to-29-year-old age group, have been dubbed as the Arab Millennials and comprise half of the Middle East’s population. They are a potent force in the region where their perspectives and views seek relevance and demand more engagement from society at large.
Research also shows that this generation creates their own ways. The way millennials are raised, the environment they are living in and the rapid technological revolution in today’s world call for real estate developers to build a niche product that adapts to the needs of Generation Y.
10 things developers need to consider when building for Arab Millennials
1. Millennials, like other generations, will always be looking to upgrade their living situations. However, they would want to live a luxurious life while being able to afford it. They will seek communities where most facilities are available as a first step to meet their satisfaction.
2. Offering the necessities for raising a family will be a key factor for the success of any project. Developing projects near schools, hospitals, sports clubs, and play areas is necessary today. Both parents work; they want to make sure that their children are busy too.
3. Millennials will always believe that home ownership is a good investment. On the other hand, they want to make sure that this investment is as liquid as possible. Only well-located, well-designed, serviced and high-quality projects deserve their appreciation.
4. Although they would want more space, millennials seek smartly-designed spaces in case of scarcity. In Saudi Arabia, for example, the sizes of houses have shrunk from an average of 420 sqm to 220 sqm in 10 years. Yet, it is still a house of 3 or 4 bedrooms. Millennials do not prioritize large spaces but rather a well-maintained home where they feel cozy.
5. Many millennials today are risk takers. So, they might think of needing an office at home. A good corner could be a selling tool.
6. While many millennials still want a car, there is a growing number of them who explore walking, commuting using various modes of transport, or cycling to work. Developers need to think of communities that are more walkable, with access to cycling facilities or car-sharing schemes.
7. They are nature lovers. Not all millennials are city-oriented unlike in the past generations where people thronged to the cities to live and work. Research has shown that millennials are ready to let go of city life for a less polluted environment. They would like to live in communities that value the presence of nature. The suburbs or newly-established cities are going to remain important destinations for young families. Communities that can offer the best urban living with the best suburban setting could be a lottery-winning ticket for developers.
8. This tech-savvy generation naturally wants smart homes, always connected but not with wires entangled behind the TV screen.
9. Low maintenance and energy-efficient. Most young buyers will ask about the maintenance cost for their homes. If they are living in a community, they want to make sure that the community association is doing its best to preserve their living environment at an affordable cost. Most buyers are looking for energy-efficient homes to save big in the long run.
10. Millennials cannot immediately afford what they want and will have to work their way to achieve it, so developers must be ready to club with their offers the ideal financial solutions that cater to and match their capabilities.