Young and middle-aged residents who plan to stay in Dubai long term are increasingly choosing to buy property rather than rent. Real estate executives and analysts say the trend is strongest among salaried professionals in their 20s, 30s and 40s, who are investing to hedge against inflation.
Launches Selling Out Fast
As a result, newly launched projects have been selling out very quickly, some within a day. In March, Danube Properties' Dh300 million Pearlz project sold out on the first day of its launch. A recent study by brokerage Union Square House found that, from 2021 to April 2022, residences by all major Dubai developers had sold out and were trading at a premium on the secondary market.
"We have successfully sold out the complete launched inventory of the project," said Rizwan Sajan, founder and chairman of Danube Group.
Payment Plans and Market Confidence
Sajan credited the company's attractive payment plan and affordable luxury developments for its projects selling out in a day.
"The projects are being successfully sold out because investors have a lot of confidence in Dubai, plus prices in the Emirate are much lower than other major cities," he said, adding that the company's long-term payment plan also makes it easier for people to buy.
Danube's newly launched Gemz project in Al Furjan offers a 10% advance payment, 1% per month and 5% after six months.
"That's one of the successful mantras of Danube Properties. My aim is to convert people who are living in rented apartments to buying their own homes. And that's happening because people here in Dubai are staying for a long time and they have savings. People who earn over Dh20,000 can easily pay instalments and own an apartment in Dubai," said Sajan.
He said around 70–75% of buyers are professionals in their 20s, 30s and 40s who already live in Dubai, with the rest being foreign investors. For a full comparison of the options, read our guide to renting vs buying in Dubai.
