These days’ millennials are seen as one of the main drivers pushing Dubai real estate. As a result of their growing demand for Dubai real estate, a new market trend emerged, forcing developers to respond and adjust to the circumstances. Property developers and sellers offer a variety of residential apartments with excellent community setups and accessible metropolitan locations with upgraded, attractive flexible payment alternatives.
Millennial buyers are choosing to invest in real estate in Dubai because they are certain that any potential dangers will be outweighed by the long-term advantages of wealth building. Due to reasons including decreased property prices and more easy repayment plans, these purchasers, who range in age from 25 to 37, are increasingly entering the Dubai real estate market. Due to the significant entry barriers present in the UAE real estate market, many millennials choose to rent in Dubai before investing in their own homes. However, the majority of buyers are professionals who are stable in their careers and who typically have working wives.
The majority of Dubai’s property developers have the “live, work play” philosophy, which gives millennials a variety of suitable housing options that suit their needs and way of life. A typical ex-pat millennial buyer in the UAE is between the ages of 27 and 35 they have a variety of home preferences, including price, size location. Now that that has been said, here are some details on what millennials desire in a living space.
Is it a fair price?
Yes, affordability is a key factor when considering a property purchase in Dubai. Now is the moment to consider how much money you have available and are willing to spend on that house. A millennial buyer would often assess your total financial capabilities, including your monthly income, and savings ability to obtain a mortgage.
Most millennial homebuyers seek out cheap housing or at the very least a flexible payment schedule. The opportunity to buy a home in Dubai will undoubtedly be seized by millennials thanks to the cheaper upfront costs and affordable monthly payments.
A small barrier to affordability still exists, particularly with regard to the down payment required to purchase a home and other associated costs. The homebuyer is required to arrange 32% of the property’s worth. Several young people also aspire to own cars and travel and spend money on other things to lead luxurious lives. These are the factors that frequently deter millennials from buying real estate in Dubai. However, things are gradually changing as more developers begin to consider millennials as a significant segment of the home-buying market. These customers typically have smaller budgets, around Dh1-3 million. In Dubai, ex-pats between the ages of 27 and 35 now see real estate as a fantastic investment.
Home Practicality and Efficiency
Millennials are more practical in their housing needs than previous generations. Young adults enjoy living spaces that may serve several purposes, such as an additional room that doubles as a guest room, game area, or workplace. Millennials would also like a space in their home that can easily be transformed into something new and a home that, despite its size, “looks” airy and broad.
The majority of millennials like to have just enough space in their homes rather than too much. These days, millennials most likely favor homes with simple designs.
The majority of millennials live in their own homes, however, others continue to rent them out to generate regular income. However, before looking at investing in more homes, the majority of millennial buyers entering the market want to first secure their own house. It will definitely make more sense to construct one’s own asset and pay off the mortgage rather than paying exorbitant rent each month if someone plans to live in Dubai for a while and start a family there. This particular set of buyers frequently has the necessary funds saved up to pay the deposit once this is achieved, the mortgage payments may often even be less than those for rentals.
The majority of buyers in their 20s opt for apartments, while those in their 30s also consider villa developments. Smaller families with limited resources frequently pick one or two-bedroom apartments. Additionally, millennials favor areas with convenient facilities like supermarkets, gyms, and access to major roads. Most millennials choose modern homes with floor-to-ceiling windows and chrome fixtures. The Greens, Dubai Marina Jumeirah Lakes Towers are some of the desired areas for millennial buyers. Additionally, buyers favor regions where their millennial friends and coworkers are making investments. Prior to purchasing, the developer’s reputation and brand value are thoroughly examined.
The UAE millennial homeownership
However, millennials (locals and ex-pats) fall short of their global peers when it comes to purchasing real estate in the United Arab Emirates. Only 26% of the nation’s millennials, compared to the 40% global average and the 70% of Chinese millennials who own property in China, are homeowners, according to a 2017 HSBC analysis.
The truth (at least for some people) may have less to do with money and more to do with worries about job security and if their family has property here, despite the fact that one of the reasons for this is frequently described as being a high entrance price barrier (common with long-time ex-pats). Karishma, a 27-year-old born and raised in Dubai, claims that while the thought of owning property there is alluring, she is unlikely to make any purchases anytime soon because her family is already a UAE resident and has a villa in Arabian Ranches.
“The villa my parents own has always been regarded as one of my possessions as well,” she continues, adding that this is something that is particularly typical among people from the subcontinent. It’s also unlikely that I’ll be able to afford anything comparable for a few years considering that we purchased the villa at a terrific time and price! She continues by saying that not being legally bound to a Dubai home also enables her to be open-minded about alternative possibilities. It would be wonderful to have her own home, she concedes, but owning the villa offers her a sense of ownership without the burden.
Mario Volpi, CCO of Kensington Exclusive Properties and a seasoned real estate professional, has observed an intriguing trend among millennials who weren’t raised in Dubai. “What they (millennials) typically do is travel to Dubai and rent an apartment for a while. Then, their roots begin to spread over Dubai! At this point, millennials frequently consider buying a home “to live in themselves.”
Stephan, a 36-year-old South African, can likewise speak to this. At the age of 32, five years after arriving in the UAE, he made the decision to buy himself an apartment in the Dubai Marina. The fact that he knew a property in the Marina would always yield good rentals as he got older and his family outgrew the flat—even though he did live in the one-bedroom apartment for a few years—was one of the reasons he bought it. “The Marina is heavily developed and not subject to the same market fluctuations that other newer developments are,” he said. Due to the area’s fame, it is not difficult to find and keep tenants.
For baby boomers and members of generation X, purchasing a home or making an investment in real estate was a milestone they fully meant to cross off their bucket lists in their 20s (and frequently accomplished). It represented maturity and a wise financial decision. Consider Generation Y, the much-discussed millennials (born between 1981 and 1998) you could conclude that they have other concerns. However, millennials are known for having disposable cash in general the UAE is no exception. They are also known to be tech-savvy and to grasp the value of time, money even experiences. This is hardly unexpected given that they grew up with information at their fingertips. In comparison to earlier generations, they have also traveled a great deal and experienced a lot more of what the world has to offer. However, this feeling of mobility is not limited to travel that looks good on Instagram. Moving away from their hometown or the sheer quantity of this generation in the UAE (according to statistics issued by the Dubai Statistics Center in 2016), which accounts for a sizeable portion of the emirate’s 2.6 million residents, indicates that country is something that is believed to be part and parcel of adult life.
Everything relies on the design
Millennials would choose a house that is well-designed and places a focus on functionality. Property developers in Dubai are increasingly taking into account a well-planned home that matches the majority of millennials’ way of life when constructing ready- and off-plan properties. Millennials would adore living in a trendy, functional home with a layout and floor plan that perfectly fit their needs.
The living room used to be thought of as the heart of the house by earlier generations, but today, most millennials like the kitchen. For this reason, anytime they search for apartments for sale, they would pick a sleek and contemporary kitchen layout. Most millennials now favor open floor plans with integrated designs as their first choice.