Downtown Dubai, United Arab Emirates (AP file photo)
Owning a home in Dubai is a dream for many residents. As rents continue to rise and long-term accommodation becomes more common, many long-term renters in Dubai are considering buying a home.
With more residents weighing the cost of renting versus homeownership, real estate experts say the decision should be based on future financial goals.Mario Volpe, senior real estate investment manager, says it’s important not to judge today’s decision based on missed opportunities. Instead, buyers should ask whether purchasing a home makes sense within the next five to 10 years. He was responding to a local media website, National news.com, about a tenant who estimated spending more than one million dirhams on rent over 15 years.Dubai has changed dramatically over the years. Longer-term visas, a more developed mortgage market, better infrastructure, and an increasing sense of stability have encouraged many residents to see the city as a long-term home rather than a temporary workplace.Owning a home can protect people from rising rents while allowing them to build equity over time. However, purchasing is not the right choice for everyone. Factors such as job security, future plans, savings for deposits and overall finances should be taken into consideration, Volpe said, while also advising speaking to a mortgage adviser before making a decision.
Aside from the financial benefits, many homeowners feel that purchasing gives them greater stability and a stronger connection to Dubai. “Ultimately, property ownership is not a race,” Volpe said. “The goal is not to have bought years ago, but rather to make the right decision for the years ahead.”
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Meanwhile, some buyers are postponing purchases as geopolitical tensions in the region have created uncertainty. Real estate consultants say these buyers are waiting to see if regional developments affect market sentiment, financing conditions or prices before committing to a purchase.According to Volpe, the demand for real estate has not disappeared. Many buyers are still searching online, arranging mortgages, visiting properties and doing research. They are simply waiting for a reason to move on.Some potential buyers use this waiting period to obtain mortgage pre-approvals, compare communities, monitor prices, and negotiate with sellers, putting themselves in a stronger position to act quickly once they are ready.When confidence returns, real estate markets often move quickly, he said. Buyers who wait too long may face more competition, fewer options, and sellers less willing to negotiate.Meanwhile, Volpe said buyers shouldn’t rush into buying. He stressed that proper research and due diligence are still essential. However, quieter market periods can sometimes give buyers more time to compare properties and negotiate better deals.“My advice is always to focus on your own circumstances rather than trying to predict the next headline,” he said. He added: “If your finances are safe, or your mortgage has been approved, and you’ve found a property that meets your medium and long-term goals, waiting for complete certainty can sometimes become the biggest risk of all. So my advice is to go for it.”