(MENAFN- Mid-East Info) betterhomes has released its Future Living Report 2025, based on a survey of 1,439 Dubai residents, revealing a decisive behavioural shift in the rental market. Tenant purchase intent has surged, signalling a structural change driven by rental affordability pressures, long-term residency plans and increasingly accessible mortgage solutions.



Tenants move closer to homeownership

More than half (55%) of tenants now plan to buy property within the next 1–3 years, a significant increase from 25% last year. Alongside this, 61% of prospective buyers expect to finance their purchase with a mortgage, underscoring strong end-user demand and a growing reliance on structured lending.

Ownership patterns are diversifying, with a near-even split between outright purchases and mortgage-backed acquisitions. The average homeowner's property value stands at AED 4.5 million.

With average annual rent currently at AED 99,000, affordability concerns remain front and centre. 69% of tenants say they would consider relocating if rents escalate significantly, illustrating how rising rental costs are nudging residents towards ownership as a long-term hedge.

The behavioural backdrop is rooted in longevity and investment confidence: 59% of respondents plan to stay in Dubai for a decade or more, with an average intended stay of 11.2 years. 36% prioritise real estate for future investment, reinforcing a shift from renting to long-term ownership.

“Purchase intent among tenants has jumped from 25% to 55% in just one year, with 61% planning to use mortgages,” said Louis Harding, CEO of betterhomes.“This is more than sentiment; it's reshaping end-user demand, prompting developers and lenders to evolve with more accessible ownership models, diverse property types, and financing solutions that match evolving household needs,” he added. Drivers behind the jump in purchase intent

• Affordability pressure: Rising rents and the prospect of repeated renewals are prompting tenants to view ownership as a hedge against future cost increases.
• Financing accessibility: With 61% of buyers expecting to use mortgages, improved lending conditions and competitive mortgage products are enabling tenants to convert intent into action.
• Long‐term residency: A growing commitment to Dubai with an average intended stay of 11.2 years, increases the appeal of buying versus continuing to rent.
• Investment preference: 36% of respondents prioritise real estate for future investment, reflecting confidence in property as both a home and an asset.
• Lifestyle shifts: Remote work and demand for larger, more flexible living spaces are accelerating upgrades from apartments to townhouses and villas.

A structural, not cyclical market shift

Developers, lenders, and policymakers should see this shift as structural, not cyclical. Rising tenant interest in buying is set to drive strong demand for mid-market and family homes in established communities like Dubai Hills and Dubai South. Mortgage activity is also expected to pick up, pushing lenders to speed up approvals and offer more flexible financing solutions.

Rental markets could feel the pressure as tenants weigh lease renewals against the cost of owning a home, potentially accelerating property absorption. The trend also points to rising interest and untapped potential in innovative property investment models, with 37% of respondents aware of blockchain-backed fractional ownership, even if only 6% have invested so far.

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