Redefining Homeownership: Navigating the Dubai Property Market for Long-Term Residents

 Many long-term residents are shifting their focus to ownership, for income or personal use

The prospect of home ownership is becoming increasingly attractive for long-term residents in Dubai, particularly among the expatriate community. For many, owning a home is not just a mark of financial stability but also a more financially prudent choice compared to renting, especially considering the rising rent rates and additional costs associated with moving.

Recent trends indicate that residents in Dubai who are paying around Dh6,000 per month in rent could end up spending over Dh1.4 million over 20 years. This figure doesn't even account for the annual rental increases, which have recently been as high as 19 to 20 percent. With a projected yearly increase of 5 percent, the total amount paid in rent could exceed Dh2.19 million over two decades. In contrast, buying a property seems to be a smarter financial decision for those planning to stay in the UAE for the long term.

The report explores the feasibility of home ownership for residents earning between Dh15,000 to Dh30,000. It illustrates this with the example of Indian expat Sharan, a 43-year-old sales manager. Frustrated with yearly rental increases and the hassle of moving, Sharan and his wife decided to buy a two-bedroom apartment in the same Dubai Marina building where they were renting. The apartment, priced at Dh1.2 million, only costs Sharan Dh900 more per month than his current rent, and it’s already generating rental income.

The article also delves into the debate between buying off-plan or ready apartments in Dubai. Off-plan sales, which offer lower entry costs and attractive payment deals, have seen significant growth, with sales values reaching Dh35.71 billion in Q3 2023. Milos Antic from Swiss developer DHG Properties highlights the strength of Dubai's off-plan sector.

One noteworthy project in this context is Champions Tower 3, a Swiss-inspired residential project backed by the Shaikhani Group and Memon Investments. Located within a 20-minute radius of Dubai's major attractions and airports, this project is expected to be a future landmark in DubaiLand, symbolizing the city's ambition for architectural excellence and offering residents a sophisticated and modern living experience. The construction of Champions Tower 3 is progressing rapidly, underscoring Dubai's commitment to hosting world-class homes and enhancing urban living standards.