06/01/22

Why UAE consumer behavior shifts from renting to buying

Why UAE consumer behavior shifts from renting to buying

Choosing to rent or buy your home is a major decision that affects not only your lifestyle but also your financial health. Ownership of real estate is seen as a valuable investment that will likely grow in value over time. Renting has its benefits as well, such as flexible arrangements and little to no responsibility. However, many people believe that purchasing a house is the financially more sensible decision. BlackBrick. reports that the volume of property sales in Dubai increased by 136.5 percent in August compared to the same month last year. Villa sales were up 124 percent thanks in part to the sale of several Dh 100 million ($27 million) villas in Dubai Hills Grove area.

 

Renting a property in Dubai

Renting a house or apartment is permanently an option. Individuals might want to start renting rather than buying a home straight immediately. Especially if you’re new to Dubai. Firstly, start small so you can figure out if you like the city, then after doing that you can start thinking big. If you enjoy your career and living in Dubai, you might begin to think about purchasing a home. Nevertheless, investing in a property in Dubai is always a great idea.

There are many reasons people rent rather than buy homes, including individual circumstances and generational trends. For example, millennials with high student loan debt and stagnating incomes may have difficulty saving a down payment or obtaining the income-to-debt ratio to qualify for a mortgage.

Choosing to rent can be easier than going through the home-ownership process for some people. Some may no longer believe that you must own a house to live a successful adult life after seeing the bottom fall out of the housing market within the past decade. Renting a home with your family may feel just as sound as owning one, especially if you have children.

 

Why purchasing a home can be more beneficial

If you decide to relocate to Dubai, you have the option of purchasing rather than renting a home. Residents who want to buy frequently do so due to Dubai’s expensive rents, which continue to climb year after year. For years, residents were afraid to do so because, despite the millions of dollars invested in the region, they feared that a crisis would drive many expats out. This might result in a large number of vacancies, causing the housing market to collapse.

There has been a significant movement since 2014. More and more western expats are deciding to buy a home in Dubai and make it their permanent home. Expats are increasingly choosing this option for the following reasons:

– After suffering a major setback during the global economic crisis, the region has shown that it can rebound in adverse circumstances.

– As rents continue to climb, banks have made it quicker and less expensive to qualify for a mortgage.

– More and more residents who had planned to remain for a few years have decided to stay permanently.

Furthermore, according to Gulf News; “A total of 52,415 investors concluded 72,207 new investments worth Dh 148 billion in 2021, representing a 73.7 percent growth in investments, a 65.6 percent rise in investors and a 100 percent increase in value compared to 2020”.

 

What suits you the best?

Different lifestyles and situations require different measures. Buying and renting are equally popular in Dubai. Depending on your situation, there are distinct advantages to both. Your lifestyle will be a critical factor when deciding whether to buy or rent.

You may choose to rent if you’re staying short-term in Dubai, not wanting to commit to an area or property, and if you’re lacking funds to buy. Lastly, Purchasing a home will suit you if you’re wanting to make a financial investment, staying long-term in Dubai, or if you’re looking for stability and comfort from owning your own home.


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