Tuesday, 02 January 2024 12:17 GMT

AI Fuels Dubai's Property Boom Draws Millennial Buyers


(MENAFN- Khaleej Times)

Dubai's property market, long an epitome of architectural marvels and reimagined luxury, is undergoing a seismic shift, not through towering skyscrapers or sprawling waterfront estates, but through the quiet power of Artificial Intelligence (AI).

From chatbots that serve as tireless virtual agents to sophisticated platforms forecasting rental yields and capital growth, AI is revolutionising how properties are bought, sold, and invested in across the emirate. This technological wave is ushering in a generational transformation, drawing a younger, tech-savvy cohort into the heart of Dubai's real estate scene, as revealed by compelling new data.

A recent market report unveiled by fäm Properties paints a vivid picture of this change. The average age of property buyers has plummeted over the past eight years. In the off-plan sector, it dropped from 54 in 2017 to 44 in 2025, while in the ready or re-sale market, it fell from 53 to 42. This is not just a statistical blip - it is a sign of a broader demographic pivot.

The 36-45 age group now dominates, accounting for 40 per cent of off-plan sales and 44 per cent of ready and re-sale transactions in 2025. Even more striking is the surge among younger buyers: the 21-25 age bracket snapped up 38.6 per cent more off-plan properties and 33.3 per cent more ready or re-sale properties compared to last year.

Meanwhile, the 26-30 age group boosted their purchases in the ready market by 31.9 per cent. At the core of this shift is AI-powered technology, exemplified by platforms like DXBinteract, a leading source of market intelligence. These tools track buyer preferences, monitor market trends, and deliver data-driven insights, empowering investors, buyers, and agents to make swift, informed decisions. For younger buyers, accustomed to digital fluency, this transparency is a game-changer.“In the past, the market leaned on older investors who trusted their gut and experience,” said Firas Al Msaddi, CEO of fäm Properties.“Now, AI and digital tools are leveling the playing field, educating younger buyers and making the market more accessible. While human judgment remains vital in this complex landscape, AI's role is only set to expand as the technology evolves.”

The data underscores this trend. In 2025, the 41-45 age group leads off-plan sales, capturing 21 per cent of transactions, with 36-40-year-olds close behind at 19 per cent. The ready or re-sale market mirrors this pattern, with 36-40-year-olds driving 23 per cent of deals and the 41-45 segment contributing 21 per cent. Yet, it is the younger cohorts posting the most dramatic year-on-year gains, signaling a market increasingly shaped by millennial and Gen Z investors technological and demographic evolution tooj center stage at the recent Game Changers 2.0 real estate summit, at Dubai's Coca-Cola Arena. Tech visionary Mo Gawdat, former chief business officer at Google [X], delivered a keynote address, joined by Al Msaddi and Dr. Mahmood AlBurai, senior director of Real Estate Policies and Innovation at Dubai Land Department. The event drew industry leaders, developers, and tech innovators eager to explore AI's impact on real estate. Gawdat's insights highlighted how big data and digital innovation are not just tools but catalysts for a new era in property investment.

As realty experts argue, Dubai's property market has always thrived on bold moves, but AI is proving to be its most transformative force yet. By arming younger buyers with unprecedented access to information and predictive analytics, it is dismantling barriers and rewriting the rules of engagement. While the human touch still guides complex decisions, the rise of AI signals a future where data reigns supreme, and a new generation of investors is ready to claim its stake in Dubai's glittering skyline. As the city continues to evolve, this fusion of technology and ambition ensures its property market remains a global pacesetter. ...

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Khaleej Times

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