Bayut and dubizzle Survey: Nearly Half of UAE Renters Consider Homeownership
A new market sentiment survey by Bayut and dubizzle reveals that 45% of UAE renters have considered purchasing a home, driven by long-term residency plans and comparable mortgage payments.
A recent market sentiment survey conducted by Bayut and dubizzle indicates a significant shift in renter attitudes across the UAE, with 45% of respondents considering homeownership.
The survey, which collected over 2,000 responses, found that while 18% are actively comparing purchase options, a larger segment (26%) plans to buy once they have saved for the downpayment and initial costs. This suggests that affordability and financing clarity are key factors influencing the transition from renting to buying.
Motivations for Buying
For those actively exploring purchase options, 52% cited a desire for long-term residency in the UAE as their main motivation. Also, 34% noted that current mortgage payments and rental costs now appear comparable, suggesting a strategic financial decision-making process rather than purely short-term market reactions.
Fibha Ahmed, VP of Property Sales at Bayut and dubizzle, highlighted the evolving property journeys, stating, "> What stands out is how closely this interest is linked to people building a longer-term life in the UAE."
Rental Market Dynamics and Buyer Confidence
Despite the interest in buying, immediate rental needs remain high, with 47% of renters requiring a move or renewal within one month, rising to 71% within three months. Rent expectations are balanced, with half anticipating stability, while 25% expect increases and 25% foresee decreases over the next year.
The wider survey also revealed strong confidence among prospective buyers. 46% expect property prices to increase over the next 12 months, and 60% are confident or cautiously optimistic about the market over the next five years. Demand is primarily driven by personal housing needs, with 72% of prospective buyers intending to purchase for personal use.
Enhancing Buyer Confidence
To increase confidence in decision-making, respondents emphasized the need for:
- A better understanding of market trends (50%)
- Greater price transparency (40%)
- Access to recent transaction data (34%)
- More reliable guidance from agents (26%)
These findings underscore the importance of accessible and credible market information for renters considering homeownership.
Questions, answered
- What percentage of UAE renters are considering buying a home?
- According to the Bayut and dubizzle survey, 45% of renters searching for property in the UAE have considered purchasing a home instead of continuing to rent.
- What are the main motivations for renters to consider buying in the UAE?
- The primary motivations are a desire for long-term residency in the UAE (52% of active comparison shoppers) and the perception that mortgage payments and rental costs are becoming comparable (34%).
- What do prospective buyers expect regarding UAE property prices?
- Around 46% of prospective buyers anticipate property prices to increase over the next 12 months, while 35% expect them to remain stable.
- What information would give potential buyers more confidence to make a decision?
- Half of respondents desire a better understanding of market trends, 40% seek greater price transparency, and 34% want access to recent transaction data.
- How many renters need to move or renew their tenancy soon?
- Nearly half (47%) of renters surveyed needed to move or renew their tenancy within one month, increasing to 71% within three months.
This brief was summarised and rewritten by Gaia Living from public reporting. Figures and details reflect the original sources.