With the rise in attractive payment plans and fall in rental prices, millennials (ages between 22 to 37 years) in Dubai are slowly warming up to the idea of owning properties in the UAE. In the past, one had to be earning an exponential amount, (mostly those who are 45 years and above) in order to be eligible to own a property in the UAE while most millennials stuck to renting apartments and villas.
The times have now changed.
Most millennial households in the UAE are well settled and secure in their career with both working partners because of which they are shifting their focus towards buying. It has been observed that millennials in their twenties are drawn towards apartments whereas millennials in their late thirties prefer owning villas or townhouses located in decent communities where it is ideal to raise families.
Since majority of the millennials are first-time home owners, their budget will be small, varying between AED 1 million to AED 3 million.
Young couples that have smaller families usually keep an eye out for one bedroom units while larger families within the millennial age group, opt for two bedroom units.
In Dubai, where most millennials hesitated to purchase properties, real estate developers are introducing affordable payment plans with service charge waivers and reduced down payment rates on high-value projects.
Location, accessibility, and affordability are some of the primary key factors that young buyers assess before making a decision. If the property is well equipped with a gym and swimming pool and is located in an area where the super market, clinic, metro station are a stone’s throw away then it will appeal to a large number of millennials.
Real estate agents have also noticed that millennials prefer contemporary design and décor with ceiling-to-floor windows.
Although the real estate market in the UAE is witnessing a change a younger group of interested buyers, these numbers are fewer compared to the older buyers. This maybe because Dubai is a transient city where most of its residents live here for a few years and then either return to their home country or migrate elsewhere.