Dubai: Property owners earn Dh13,000 more than tenants, reveals report
Property owners in Dubai are seeing their bank accounts grow.
For the past three years, rent prices have been climbing. On average, those who own property are making over Dh13,000. That's 41 percent more money than tenants. A fresh study confirms this huge income gap.
The 'Future Living: The Dubai 2024 Edition', a study put out by property consultancy Betterhomes, revealed that renters pull in an average monthly income of Dh32,303. Meanwhile, property owners rake in Dh45,616 each month.
In the last three years, property owners have seen more money due to increasing rent.
By June 2024, normal apartments and villas in Dubai asked for yearly rents of Dh127,969 and Dh354,512. During this time, Palm Jumeirah had the most expensive rents for apartments, averaging Dh279,826 a year. Similarly, Al Barari had the priciest villa rents with an average of Dh1,344,844. This information is in CBRE's report for the second quarter of the year.
This year, average wages in the UAE are predicted to blossom by 4 per cent. That's pretty impressive, especially compared to just a 2.3 per cent climb in inflation. Did you know? Better Homes shared some fascinating data on income. Apparently, over half—63 per cent, in fact—of folks surveyed take home Dh50,000 or less each month.
A detailed survey was carried out, taking into account more than 1,600 folks—renters, owners, and investors. This research pinpointed millennials between 28-43 years as the key group, making up 56% of the feedback.
Millennials leading home ownership
Dubai's population is changing, and so are their housing needs and investment focuses. The study showed that millennials, especially those from 28 to 43 years old, are the driving force in owning property and rental markets. They're eager to take advantage of the climbing property costs and strong rental returns in the city.
Although a significant number of Dubai's inhabitants rent their homes, the survey displayed an increasing inclination towards owning homes. This shows a distinct need for more opportunities to buy properties in the city.
A real estate agency's study showed that most people, about 77%, live in rented homes. An impressive 79% of these renters prefer to sign leases for an extended period. This trend shows that Dubai's population prefers flexibility and less financial stress, leading to a higher tendency to rent.
90% want to stay for five more years
A study by Betterhomes reports that a sizable 72 percent of Dubai's populace have made the city their home for over half a decade. Interestingly, the expectation to reside there for another five-year stretch at a minimum is held by a solid 89 percent of those people.
This research highlights a change in how long people live in the city. Before, Dubai's foreign population moved a lot. Folks often left for Western countries to get dual citizenship. But ever since the UAE rolled out longer stay options, like the Golden, Silver, and Retirement Visas, folks prefer to stick around. Especially after the world health crisis.
The population of the emirate has seen a surge, hitting a record 3.779 million in September. Richard Waind, Better Homes CEO, expressed his own journey: "My initial perception of Dubai was of a temporary stop. It seemed like just a work and live spot for a couple of years before moving ahead. The survey reveals, including my own family's perspective, that most residents have abandoned this mindset."
"Dubai, it's our home now. We've settled here, started families, launched enterprises, and picked out houses. Imagining this substantial shift, you see a pattern in Dubai's real estate. It sends me strong reassurance about the market's future endurance," he remarked.
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