Rent Or Buy? First-Time Buyers Push UAE Property Market Towards Ownership

2026-02-04 02:27:14

(MENAFN- Khaleej Times)

Sales listing impressions rose to 49% in 2025, while rental activity declined on a digital real estate platform

PUBLISHED: Wed 4 Feb 2026, 3:35 PM

By:
Sahim Salim

Home ownership is no longer a distant dream for UAE residents, as more renters turn buyers amid long-term residency plans, supportive policies and rising incomes.

New data from Property Finder shows sustained buyer intent across Abu Dhabi and Dubai, with platform activity in 2025 pointing to a growing commitment to home ownership rather than leasing.

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According to the platform's bi-monthly consumer sentiment poll, 70 per cent of respondents in Dubai plan to buy within the next six months. Buyer interest continues to outpace rental demand, with sales listing impressions making up nearly half of all activity on the portal. Abu Dhabi has also seen a sharp rise in ownership intent, shown by a year-on-year increase in sales-focused searches.

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In Dubai, the move toward ownership has been supported by long-term residency policies, ownership-linked visas and initiatives such as the First-Time Home Buyer Programme, which has enabled thousands of residents to step onto the property ladder in the past year alone. First-time buyers have emerged as a key driver of demand, while existing homeowners are increasingly upgrading to larger or higher-quality properties as confidence in long-term settlement strengthens.

This confidence is also reflected in buyer behaviour. Home-seekers are committing a greater share of their income to mortgage payments, rising from 23 per cent in 2024 to 31 per cent in 2025. They show a clear preference for premium and spacious homes.

Apartments vs villas

Apartments continue to dominate transaction volumes due to broader supply and affordability, but villas - constrained by limited stock - have recorded stronger price growth.

Abu Dhabi is witnessing a similar structural shift. Sales listings have taken a larger share of overall demand, indicating a growing number of residents looking to settle rather than rent. Apartments remain the most sought-after residential format, accounting for the majority of transactions, supported by a healthy supply across locations and price points. Within the villa segment, however, buyers are clearly upsizing, with larger family homes now making up a growing share of transactions.

Across both emirates, the data points to a maturing residential market where ownership is increasingly seen as a long-term lifestyle decision rather than just a financial one.

Popular communities

Established communities, including Downtown Dubai, Dubai Marina, Palm Jumeirah, Business Bay, JVC, JBR, and Dubai Hills Estate, remained popular in 2025. Off-plan developments like Dubai Islands and Maritime City attracted strong interest, particularly for luxury and waterfront homes.

As reported by Khaleej Times, the 25–35 age group is expected to drive the next phase of market growth, according to industry insiders.

As Yogesh Bulchandani, CEO & Founder of Sunrise Capital, put it:“We are witnessing a significant influx of young buyers. Dubai's upcoming phase of real estate growth will hinge on affordability and accessibility, which positions the 25 to 35 age range as a key demographic for this shift.”

Another expert, Ismail Al Hammadi, Founder & CEO of IAH Group, said the idea of home ownership has become a part of the younger generations' long-term financial thinking.