The Dubai rental market is undergoing a decisive behavioural shift, with tenants increasingly moving toward homeownership as affordability pressures mount.
According to betterhomes’ Future Living Report 2025—based on a survey of 1,439 residents—tenant purchase intent has more than doubled, driven by rising rents, accessible mortgage products and longer-term residency plans.
The findings suggest a structural change in Dubai’s housing landscape, with tenants reassessing the long-term viability of renting as average annual rents reach AED99,000 ($26,963).
More tenants plan to buy
The report reveals that 55 per cent of tenants now plan to buy property within the next one to three years, up sharply from 25 per cent last year.
Of those looking to purchase, 61 per cent expect to use a mortgage, signalling stronger end-user demand and deeper reliance on structured lending.
Ownership patterns are becoming more diverse, with a near-even balance between outright purchases and mortgage-financed acquisitions. The average homeowner’s property value now stands at AED4.5m ($1.23m).
Rising rental costs continue to shape behaviour: 69 per cent of tenants say they would consider relocating if rents rise significantly, highlighting the appeal of homeownership as a hedge against repeated rent escalations.
Long-term residency driving Dubai real estate ownership
Dubai’s long-term appeal remains a central theme. 59 per cent of respondents plan to stay in the emirate for a decade or more, with an average intended stay of 11.2 years.
Meanwhile, 36 per cent prioritise real estate for future investment, reinforcing the shift from short-term renting to long-term ownership.
Louis Harding, CEO of betterhomes, said: “Purchase intent among tenants has jumped from 25% to 55% in just one year, with 61% planning to use mortgages. This is more than sentiment; it’s reshaping end-user demand, prompting developers and lenders to evolve with more accessible ownership models, diverse property types, and financing solutions that match evolving household needs.”
Surge in purchase intent
The report identifies several factors reshaping tenant behaviour:
- Affordability pressure: Rising rents and concerns over repeated renewals are pushing tenants to treat ownership as a long-term cost hedge
- Financing accessibility: With 61 per cent expecting to use mortgages, competitive mortgage products and improved lending conditions are enabling greater conversion of intent to action
- Long-term residency: The average intended stay of 11.2 years increases the appeal of ownership versus recurring rent expenditure
- Investment preference: 36 per cent of respondents prioritise real estate for future investment
- Lifestyle shifts: Remote work and demand for flexible living spaces are accelerating moves from apartments to townhouses and villas
Structural shift in Dubai housing market
The report advises viewing the trend as structural, not cyclical, with implications for developers, lenders and policymakers.
Rising tenant interest in buying is expected to fuel demand for mid-market and family-oriented homes in established communities such as Dubai Hills and Dubai South.
Mortgage activity is projected to increase, prompting lenders to improve approval timelines and introduce more flexible financing options. Rental markets may feel pressure as tenants weigh renewals against the benefits of ownership, potentially accelerating property absorption.
The report also highlights growing awareness of innovative investment models, with 37 per cent of respondents aware of blockchain-backed fractional ownership—although only 6 per cent have invested so far—pointing to untapped future potential.
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