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Friday, February 6, 2026

Rent or Buy? First-Time Buyers Are Changing the Game in UAE Property

The UAE property market is going through a real shift right now — more people are choosing to buy rather than rent, and it’s mostly first-time buyers making the leap. They’re planning to stick around long-term and feeling confident about their income, so why keep paying someone else’s mortgage?

New data from Property Finder shows that buyer interest kept outpacing rental searches across Dubai and Abu Dhabi throughout 2025. Sales listings hit 49 per cent of all activity on the platform, while rental interest dropped. This isn’t just a blip — it’s a real change in how people are thinking about housing.

In Dubai, 70 per cent of people surveyed said they’re planning to buy a home in the next six months. That’s a big number. Long-term residency programs, ownership-linked visas, and government schemes designed to help first-time buyers are making it easier to take that step. And as confidence builds, more residents are saying goodbye to renting and hello to owning.

How buyers are approaching this is changing too. People are now putting about 31 per cent of their income towards mortgage payments, up from 23 per cent in 2024. That’s a significant jump, and it shows they’re willing to commit more financially — often because they’re prioritizing lifestyle and space over saving a few extra dirhams. Bigger, better-quality homes are what people want now.

Apartments are still the go-to for most buyers because they’re more affordable and there’s plenty of supply. But villas? They’re in shorter supply, and prices have climbed faster as a result. Over in Abu Dhabi, the same pattern is showing up — more people searching to buy, and families moving into larger homes.

When it comes to location, the usual suspects are still hot: Downtown Dubai, Dubai Marina, Palm Jumeirah. But off-plan developments are also pulling in serious interest, especially from younger buyers who see the value in getting in early.

Here’s the interesting part: the 25–35 age group is expected to drive the next wave of growth in UAE real estate. For them, buying a home isn’t just about money or investment — it’s a lifestyle choice. It’s about putting down roots, building a life, and having a place that’s truly theirs.

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