Getting on the Property Ladder: Is buying a Property in Dubai an Option for Millennials?

Dubai, from a small centre for fishing and pearling, to a bustling city of skyscrapers, ports, beaches and tourism, became an attractive hub for investors and entrepreneurs from all around the world to invest and own a property. A multicultural melting pot with a tolerant atmosphere became a haven for millennials who seek future with an optimistic eye. The term millennial or generation Y, refers to individuals who were born between 1981 and 1996. As more millennials are mounting the property ladder in the UAE, millennials are now considered as the driving-force of Dubai’s real estate market. 

  Although and with comparison to their counterparts, the majority of UAE millennials are not homeowners, the attitude in general remains sanguine. According to a study conducted by HSBC, 80% of UAE’S Millennials intended to make a property purchase within the next five years whereas in France 69% intend to own their own property and 74% in the UK. But what are the reasons behind this change of heart and mind-set towards investing in Dubai? What caused millennials to consider owing their own property rather than renting one? Why do many millennials believe that owing your own home in Dubai is a smart investment? 

 Saving Money in the Long Run

There is a positive correlation between property value and rent. That is, the more the value of a property increases, the rent will eventually increase. Hence, buying your own property and selling it later at a decent profit mark is way better than paying rent that will constantly keep on increasing. 

Affordable Prices and Flexible Payment Plans

  As Aleli Alo, a property adviser puts it, “If you live in a rented place for say 10 years, then it is basically money lost.” When buying a property, affordability is the most important aspect. For around AED 300,000, you can own your property in Dubai. Millennials will consider their financial abilities in terms of monthly income, savings and the possibility of applying for a mortgage. When it comes to payment plans, developers in Dubai offer a vast array of attainable solutions that include lower initial payments and stretched out payment plans that can extend to after a handover. 

Mortgage Plans

  If you do not have the immediate amount to buy a property in Dubai, you can apply for a mortgage. Most of the banks in Dubai will offer convenient mortgage plans in this tax-free haven where you can borrow up to 80% of the purchase price as in March 2020, the Central Bank of UAE issued a decree that enables banks to increase the loan-to-value (LTV)  for first-time buyers by 5%. This will help you build equity. Equity is the difference between how much your home is worth and how much you owe on your mortgage. At the time of your buy, your home equity would be your down payment. Once you have paid-off your mortgage you’ll gain 100% equity. 

The Digital Nomad

  As Dubai, the multicultural economic hub copes with change; the UAE has given feasible visa and residency alternatives for the conventional sponsor notion. Whether you lose your job or run out of business, there is still an option to live in the country as a digital nomad. You can be employed somewhere else or you can work online from the convenient of your home.  

Attractive Tech-friendly Communities

  Dubai offers modern millennium-friendly communities in prime locations. With all of the necessary amenities such as high-speed internet, charging points, gyms, swimming pools, coffee shops, spas, parks and supermarkets to satisfy the needs of millennials who seek a modern and convenient lifestyle. 

In brief, Dubai’s modern lifestyle and attractive options made it an attractive target for millennials to invest and dream of a bright future. 

More To Explore

TIMI Property is committed to availing a truly pragmatic, and efficient one-stop service platform