As rental prices continue to climb, a massive shift in mindset is transforming the Dubai property market.
For years, the standard advice for Dubai expats was simple: rent, save your cash, and invest back home. In 2025, that logic has officially flipped.
According to the new Future Living Report 2025 by Betterhomes, rising rents are pushing long-term residents to commit to ownership in record numbers. The survey of 1,439 residents reveals a stark change in behaviour: 55 per cent of tenants now plan to buy a property within the next one to three years.
To put that in perspective, just last year, that figure was only 25 per cent.
The “Rent Trap” is Driving Sales
The primary driver is purely financial. With the average tenant now paying Dh99,000 per year in rent, many feel squeezed. The report highlights that 69 per cent of renters would consider relocating if their rent increased significantly.
Rather than simply moving to a smaller apartment, tenants are choosing to exit the rental market entirely. With average mortgage rates hovering around 4 per cent while rental yields exceed 6 per cent, paying a mortgage is often cheaper than paying a landlord.
Affordability & Mortgages
Buying a home in Dubai is no longer just for the cash-rich elite.
- Mortgage Usage: 61 per cent of intending buyers plan to use a mortgage.
- Transaction Volume: Q1 2025 saw 9,300 mortgage transactions, a 24 per cent increase from the previous year.
- Mid-Market Focus: The average mortgage deal size has fallen by 16 per cent to Dh4.17 million, indicating a surge in mid-income buyers snapping up more affordable units.
Dubai is Becoming “Home”
Beyond the finances, there is a structural shift in how people view their time in the UAE. The transient “2-year plan” is fading.
- Long-Term View: 59 per cent of respondents plan to stay in Dubai for at least 10 years.
- Average Stay: The average intended stay is now 11.2 years.
This longevity makes the upfront costs of buying (like the Dubai Land Department fees) far easier to justify.
What Are People Buying?
The average planned property value for these new homebuyers is around Dh4.5 million. While this indicates strong ambition, the secondary market (ready properties) is seeing the most immediate action.
Engel & Völkers reported a 22 per cent increase in secondary-market sales in the first eight months of 2025. Families and professionals are prioritising ready homes where they can move in immediately and escape the uncertainty of annual lease renewals.
However, the off-plan market remains robust for investors, with transactions for off-plan apartments surging 43 per cent in Q2 2025.
Key Takeaway
The mindset has shifted. High rents and long-term residency plans have convinced 55% of tenants to become buyers. If you are paying over Dh100k in rent, it is time to calculate if a mortgage could offer you stability and an asset for the future.
Frequently Asked Questions (FAQ)
Q: Is it cheaper to buy or rent in Dubai right now? A: With rental yields often exceeding 6% and mortgage rates around 4%, monthly mortgage payments can be lower than rent for comparable properties. However, you must factor in the upfront buying costs like the 4% DLD fee.
Q: Can I get a mortgage if I am self-employed? A: Yes, though the documentation requirements are stricter. Banks will typically look at your company’s turnover and profit history.
Q: What is the minimum down payment for an expat? A: For a property under Dh5 million, the minimum down payment is 20 per cent for expats.
JobXDubai 
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