Why more Dubai tenants are buying their own homes

Dubai: More expatriates who have spent years renting homes in Dubai are now considering buying their own properties, marking a significant shift in the emirate’s real estate market as rents ease, more homes become available and buyers focus on long-term value.

While Dubai continues to attract international investment, the growing participation of long-term residents suggests that the next phase of the property market may be shaped as much by people looking for a permanent home as by investors seeking financial returns.

Property experts say families who have lived in Dubai for several years, enrolled their children in local schools and secured long-term residency visas are increasingly choosing home ownership over renewing rental contracts.

The changing trend comes as Dubai’s property market enters a more selective phase following two years of exceptional growth, with buyers paying closer attention to prices, mortgage costs, building quality and future rental returns.

According to property consultancy Cavendish Maxwell, Dubai recorded residential sales worth Dh72.6 billion across approximately 34,000 transactions in the third quarter of 2026, representing a 47 per cent decline in value and a 38 per cent drop in transaction volume compared with the same period last year.

However, industry analysts say the figures do not necessarily indicate a sharp downturn. Part of the decline reflects delays between property purchases being agreed and officially registered.

Savills reported approximately 34,500 transactions during the quarter, just four per cent below the previous three months, while prices for comparable properties remained relatively stable.

Shahzaib Elahi, Co-founder of Hayaat Developments, said the biggest change is the growing number of long-term Dubai residents deciding to become homeowners.

Many of these buyers have been renting for three, five or even eight years and now consider Dubai their permanent or long-term home.

“When they sit down with the numbers, the gap between their annual rent and a monthly mortgage payment on a comparable home is often smaller than they expected,” he said.

According to Elahi, families are increasingly looking beyond property prices and considering practical issues such as proximity to schools, parking facilities, neighbourhoods and the overall living environment. “Unlike short-term investors, these buyers are often looking for homes where they can live for the next decade,” he noted.

Mortgage activity also reflects this trend. Cavendish Maxwell recorded approximately 22,500 home-loan transactions during the first half of 2026, an increase of more than seven per cent compared with the previous year.

Kareem Emam, Senior Property Consultant at Driven Properties, said tenants approaching lease renewal are among the most active buyers.

“The most active buyer I deal with right now is a tenant whose lease is coming up for renewal,” he said.

“They arrive with two options on the table, a new lease or a purchase, and they compare them line by line: rent against mortgage payments, service charges and the cost of moving.”

He said ready-to-move-in homes are particularly attractive because buyers can inspect the property before purchasing and move in within weeks.

The shift towards home ownership comes as tenants gain more negotiating power in several popular residential communities.

Elahi said tenants now have greater flexibility to negotiate rents, move into larger properties or choose better-maintained buildings.

For those considering buying, softer rents also provide more time to evaluate their options without rushing into a purchase.

International investors remain an important part of Dubai’s property market, but their buying behaviour is changing.

Industry experts say investors are becoming more cautious about potential returns, particularly as thousands of new homes are expected to enter the market. Others are linking property purchases to long-term residency plans, allowing them to use their investments as future family homes.

The expected increase in housing supply is another factor influencing purchasing decisions.

Dubai added approximately 24,800 residential units during the first half of 2026, nearly 38 per cent more than during the corresponding period last year, according to Cavendish Maxwell.

Savills estimates that more than 525,000 residential units are scheduled for delivery between 2027 and 2030. However, scheduled deliveries do not necessarily mean all properties will be completed within that period.

Industry experts expect increased supply to create stronger competition among developers and landlords, particularly in areas dominated by high-rise apartment buildings.

Khalid Al-Atiya, Director of Sales at HOLM Developments, said buyers are increasingly prioritising location, construction quality and long-term value.

“End users, including many UAE-resident expats, remain the core of demand, with international investors adding a steady layer,” he said.

He added that developers and landlords would need to offer better value as residents gain more housing choices.

Iryna Kedysh, Senior Property Consultant at Dacha Real Estate, said the growing interest in home ownership among long-term residents reflects Dubai’s appeal as a place to settle rather than simply invest.

Buyers are increasingly placing greater importance on lifestyle, stability and long-term value, she said.

Property experts expect 2027 to be a year when careful financial planning becomes increasingly important for both homeowners and investors.

Emam advised prospective buyers to examine service charges, building conditions and actual transaction prices recorded by the Dubai Land Department rather than relying solely on advertised property prices.

For residents considering whether to continue renting or purchase a home, the decision will depend on mortgage affordability, upfront buying costs, expected length of stay and the quality of available properties.