Millennials all across the world are starting to make their way onto the property ladder, driving a major first-time buyer market increase.
It seems that Millennials, often referred to as generation Y, believe that it is now more important to own their own home rather than spending their money on cars, holidays or materialistic possessions. Property is becoming paramount, with people as young as 18 starting to save for their own home.
This is no different for the young adults of Dubai who are beginning to take their first look at property as recent figures have shown an influx of millennials buying property in this part of the world.
Those aged 25 to 37 are now choosing to buy property instead of renting. Appealing payment plans and reduced house prices have made Dubai one of the most popular areas for the purchase of property in recent years.
Studies show that those who are settled in a secure job or living with their spouse are increasingly beginning to plan their future, starting with the purchase of a house suitable to raise a family in.
A rising number of millennials are making their way in to the property market, spending their money on their own mortgage rather than renting.
More and more young people are beginning to see property as a sound and lucrative life investment. Rather than becoming property investors themselves, millennials are opting to buy property as their primary home as opposed to buying up several properties in order to let.
Dubai is offering a rising number of opportunities for millennials in the property market including impressive payment plans and flexible deposits.
Potential property purchasers aged 25 to 37 often have enough money to cover the cost of a property deposit in Dubai. This means that this group of people are starting to view the real estate market as more attractive investment that demands fewer financial strains. Mortgage payments in Dubai can very often be less than monthly rental payments, making property purchase an increasingly beneficial and popular option.
Buyers in their 20s are increasingly investing in apartments while those in their 30s are looking for villa communities perfect for families.
Millennials tend to look for stylish and modern designs in a prime location. Properties in close proximity to gyms, supermarkets and highways are in high demand for millennials seeking a fast-paced, high-end urban lifestyle. Jumeirah Lakes Towers, Dubai Marina and The Greens are among some of the most popular property investments in Dubai.
With an increasing number of payment plans available in Dubai, it is no surprise that the housing market has seen an influx in young, first-time buyers.
Off-plan projects have also seen a recent surge of popularity. Millennials are becoming more confident that the quick completion time promised alongside the fact that such properties are developed by professional and established companies will offer promising prospects for them in the real estate market.
Although more millennials are purchasing more property in Dubai, they still only make up a small proportion of the faction. A deposit on a property in Dubai costs an astonishing 32% of the property’s entire value.
Taking into account the high cost of living in Dubai, being the 20th most expensive city in the world to live in, and the current rental costs paid by prospective buyers, it still remains a struggle for some millennials to compete with the powerful and affluent investors dominating the property market.
*For more information on Dubai property investment, please contact Hopwood House.