The Dubai residential real estate market is seeing a paradigm shift in terms of the average age of home-owners, with Gen Z projected to soon take over as majority buyers, industry players said.
Trends such as sustainable living and integration of new technologies in housing are also gaining traction with the new set of buyers, prompting developers to tweak concepts and designs of new projects to cater to the emerging buyer preferences currently gaining prominence.
“The Dubai housing market is increasingly seeing a major shift in buyer profiles, with a steady decrease in the age of buyers,” Ankur Aggarwal, Chairman and Founder of Dubai-based BNW Developments, told Arabian Business.
“While the millennials – those born in late 1980’s to early 1990’s – are currently leading the buying trends when it comes to housing units in Dubai, it is expected that Gen Z – those born in late 1990’s – will soon take over as majority buyers,” he said.
Aggarwal said this is a major shift from buying trends observed in the last decade when the average age of property buyers in Dubai – and the UAE – was much higher.
Farooq Syed, CEO of Springfield Properties, the rise of Generation Z as homeowners in Dubai is reshaping the real estate market.
“This demographic is prioritising homeownership due to rising rental costs, flexible working arrangements, and Dubai’s global appeal as a hub for talent, innovation, and high-quality living standards,” Syed told Arabian Business.
Other industry players said they are also seeing increased demand for bookings from more and more young investors in their upcoming projects.
Economic diversification, low interest rates, easy payment plans aiding Gen Z to invest in properties
Industry experts said the UAE’s focus on economic diversification and higher GDP growth, coupled with investment and policy initiatives to make the country an international hub for new age tech and financial sectors, have attracted a large number of young professionals from around the world to move base to the Gulf country, triggering a new round of demand surge in its property market.
Low interest rates and easy payment plans offered by developers are also among the major factors that have encouraged and enabled young buyers, they said.
Syed said Generation Z is also driving innovation, prompting developers to tweak concepts and designs of new projects to cater to their emerging preferences.
“Smart home technologies such as AI-powered automation, energy optimisation systems, advanced smart security, and IoT-connected appliances are becoming standard features in modern developments, reflecting Gen Z’s values and preferences,” he said.
Aggarwal said with the added demand surge from Gen Z, Dubai’s real estate market continues to expand and mature, as evidenced by recent data.
“With an increasing number of individuals and young professionals choosing to make Dubai their home, the market presents significant opportunities for high-yield investments,” he said.
“This has also led to a growing trend of investing in authentic residential properties, both for long-term capital appreciation and for generating substantial rental income,” he said.
Neighbourhoods away from city centres gaining traction with new buyers
Industry insiders said along with the entry of younger house seekers, the Dubai property market is also witnessing an increased trust in areas away from the city centre.
This trend has been particularly prominent in 2024, as the residential real estate market in the city saw a major shift in investor interest, they said.
Emerging districts like Dubai South and Jumeirah Village Circle (JVC) are gaining momentum of late, with the new breed of young home buyers.
Data on 2024 third quarter Dubai market performance also validate the trend of the more accessible housing segment experiencing significant appreciation, with prices climbing up to 12 percent during the period.
“This is complementing established areas such as Dubai Marina, Business Bay, and Dubai Silicon Oasis,” Aggarwal said.
The BNW Developments founder, however, said Downtown Dubai and Dubai Marina still remain key investment destinations.
Syed said the accessibility of virtual tours, AI-powered property recommendations, and digital purchasing platforms have also made the home-buying process seamless and more appealing to young buyers.
This shift has also encouraged brokerage companies to adopt AI-driven tools and advanced digital platforms to better meet the expectations of this tech-savvy generation, he added.
“As the industry evolves, developers and brokerage companies are responding by offering diverse housing options, from affordable properties to complement the ultra-luxury segment, to sustainable and tech-enabled homes,” the Springfield Properties top executive said.
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