A few years ago, Jatin and Sherry Gupta, a millennial couple, moved to Dubai from Doha. He is a banker in his early 30s; she is a PR consultant and founder of Excel Comms in her late 20s. They had actively sought the transfer because they felt Dubai would be a "good place" to be, not least because it is "a two-and-a-half-hour flight away from home [in north India]". Within a year they had fallen in love with the city and decided it was where they wanted to be for the foreseeable future: at least the next 5 to 10 years.

That year they rented in the bustling community of Jumeirah Lakes Towers (JLT). Socialising at weekends, they discovered that six of Jatin's college classmates from India, all in their early 30s and spread across Dubai's freehold areas, had bought homes of their own.

"It made perfect sense," says Jatin, sitting by one of JLT's many lakes on an evening still cool enough to sit outside, sipping tea from one of the countless cafés among the glass-fronted towers. "Instead of paying money on rentals, you're better off owning a place… for sure, property prices will go up and down, but — worst-case scenario — even if you assume that the value of what you bought remains the same at the end of 5 or 10 years, you would still have saved on rent."

Shortly before Covid, Jatin and Sherry bought a two-bedroom apartment in JLT, with a friend from Jatin's alma mater who owned a home in the same cluster showing them the ropes. It took "courage" to commit such a large sum, the couple says; the down payment almost wiped out their savings. "Our parents back in India kept asking us to do — and redo — the math so we didn't end up cash-crunched and in debt," Sherry remembers. "But finally, when we sealed the deal, they were very proud of us… It was a big moment, pretty emotional." It helped that home was, quite literally, where their heart was: in Dubai.

The Appeal of Bricks and Mortar

It used to be said that the Dubai dream lasted only as long as your job or your business; the day the rug was pulled from under you, you had to pack up and leave. Not any more. With the UAE relaxing its visa and residency rules, losing a job or closing a business no longer means leaving the country, and people can even live here as digital nomads while employed elsewhere.

Jatin and Sherry arrived as newcomers, but there are also young people who grew up here and whose families were wary of buying property because life in Dubai lacked a sense of permanence. This new generation is buying homes instead of renting as their parents did, says Aleli D Alo, a Dubai property adviser. "If you live in a rented place for, say, 10 years, then it's basically money lost," she says, echoing Jatin. "Instead, if you had bought the property, you could have paid it [your mortgage] off in a decade… and even sold your place at a higher price… and then maybe bought some place bigger."

She has seen a surge in younger, first-time buyers who are "motivated to buy because the market is going up". Many young people "who have earned good money on, say, [investing in] cryptocurrency often want to diversify their funds to a more tangible/stable asset — a first home". She adds that "many millennials are becoming digital nomads and moving here because they believe Dubai is very stable… a very safe market."

Anis Sahyoun, a Lebanese entrepreneur born and raised in Dubai (and partly in Saudi Arabia), is a firm believer in property. "No stocks and bonds for me, give me real estate," he says. Having watched the start-up ecosystem closely, he believes there is no reversing the "huge influx of businesses here", which is driving more home purchases. "There are conflicts and uncertainties around the world [including his home country, Lebanon], but the UAE is a safe, tax-free haven." People, especially young people, will keep arriving and investing in property here rather than at home.

His reasons are emotional too. "This is home, this is a city with a vision, my family and I are here to stay… at least for the foreseeable future." When his French brother-in-law and family decided to leave France, they chose Dubai and have since bought property. "My brother-in-law saw exactly what I did."

Why It Is Easy to Be House-Proud

In March 2020, the Central Bank of the UAE allowed banks to raise loan-to-value (LTV) limits for first-time buyers by 5 percentage points, for both expats and UAE nationals, meaning expats can now borrow up to 80% of the purchase price. According to Lewis Allsopp, CEO of Allsopp & Allsopp, one of Dubai's leading property agencies, the higher LTV encouraged many first-time buyers "to take the plunge". "From then on, the legislations and visas that have been introduced by the UAE government have been extremely helpful for expats looking to set up a life in the city and have definitely made an impact on the property market."

He notices that first-time buyers are confident in their intent. "A lot of them have done their due diligence and have been living in Dubai for some time before making the decision to buy… once they are at the stage of viewing properties, their mind has been made about buying their first property here."

That confidence is reinforced by policies that make buying compelling. Banks offer competitive rates, and if an owner suddenly decides to leave, "they can always rent out the place very easily — or convert your place into a holiday home — and earn money from it", says Aleli. Almost everything can also be done online. "You don't even have to be present in person in order to purchase." The quality of property management, she adds, "is something you will not find anywhere else in the world… everything can be managed on your smartphone. There's an excess of service providers here in Dubai, who can be accessed even if you are not around in person."

For younger buyers looking for a hassle-free experience, technology has removed many of these concerns. Anis agrees: "They've just made it so easy."

Making Affordable Luxury a Trend for Millennials

Rizwan Sajan, founder and chairman of Danube Group, may not be a millennial, but Danube Properties was built on a strategy of serving young, first-time buyers.

"Our propositions were formulated keeping in mind the younger target group — those in their early- to mid-30s, buying their first [home], who wouldn't need to be intimidated by the prospect of very expensive properties — for which you need to have wealth passed on to you by your family — and yet would not need to compromise on aspirations like a 'luxurious' lifestyle," says Rizwan. Danube residences are usually furnished, with younger, millennial tastes in mind.

He says that on any given day there is a steady stream of first-time buyers at Danube's offices, who usually leave having signed on the dotted line, reflecting the same confidence and intent Lewis Allsopp describes.

Danube built its offer around the tagline "stop renting, start owning", with propositions such as a 10% down payment followed by 1% a month. After the way the government handled Covid and Expo, investors are flowing in, market confidence is at an all-time high, and many young people, from salaried professionals and start-up founders to digital nomads, want to move to Dubai. "They will be investing in properties," Rizwan affirms. "No two ways about it." The future, he says, "is super bright". Danube's first-time buyer initiative continues this focus.

Home Is Where the Heart Is

In the end, it comes down to what first-time buyers believe will benefit them most, says Lewis Allsopp: "If you feel that Dubai is home and moving back to your home country is not on your radar, then it's time to stop paying rent and subsequently paying someone else's mortgage — and start paying into your own."

The market can still be volatile. During the pandemic, Dubai prices briefly fell sharply, and Jatin, who checks his property's likely value on Dubizzle every other day, was annoyed to see he could have bought for far less had he waited. That is when Sherry gave him a reality check: "Why are you putting a monetary value to the place we call home?" And the penny dropped.

Source: Zawya