Why More Residents Are Buying Properties in Dubai to Beat Rising Rents?
Discover how Dubai residents are taking control of their future by turning rent payments into long-term investments
A Shift from Renting to Owning in Dubai
Are you tired of watching your rent increase year after year? You’re not alone. A growing number of residents are buying properties in Dubai to escape soaring rental rates and secure their place in one of the world’s most dynamic real estate markets. With rental prices increasing by up to 31% in just the first half of 2024 (according to Bayut), more families, professionals, and long-term residents are choosing ownership over uncertainty.
At Homesphere Real Estate, a top real estate agency in Dubai, we’ve seen first-hand how this shift is reshaping the property market. Whether you’re a first-time buyer or a seasoned investor, the current market presents an unmatched opportunity to buy into lasting value. This is the moment to explore luxury properties for sale, with flexible payment plans, and high-growth potential.
Why Rents Are Rising and Will Continue to Climb
Dubai’s population has surpassed 3.8 million and continues to grow at an annual rate of 3.6% (The National, 2025). Despite this rapid growth, housing supply has not kept up. In 2024, only 27,000 new homes were completed—the lowest in six years, according to ValuStrat.
The result? Demand significantly outweighs supply, driving rental prices higher across both affordable and luxury segments. Apartments alone saw rental increases of up to 15%, while luxury villas spiked by 27% (Bayut, 2024). In areas like Damac Hills, Business Bay, and Dubai Marina, limited availability means renters are paying more than ever just to stay in place.
Discover how Homesphere Real Estate can help you invest in luxury properties escape the rental cycle for good.
From Renter to Owner: A Growing Trend Among New Residents
Many new residents are making the leap to ownership within just 1-2 years of arriving in Dubai. This marks a notable shift from past trends, where renting was the default choice for newcomers.
Why the change? Rising rents, favorable mortgage conditions, and long-term residency goals are driving this transition. Experts from leading real estate consultancies have pointed out that homebuyers are increasingly motivated by the security, stability, and investment potential that comes with buying properties in Dubai.
Affordable Luxury: Dubai’s Fastest-Growing Real Estate Segment
The term “affordable luxury” is no longer just a buzzword—it’s a market-defining trend. In 2024 alone, the affordable luxury sector grew by 34% (Khaleej Times), fueled by high rental yields and investor demand. Industry experts predict another 5-8% increase in property prices for 2025, with rental yields averaging around 7% (ZāZEN Properties).
This segment is appealing not only to investors but also to families and retirees seeking high-quality living without the premium price tag. With top-tier amenities and master-planned communities, properties in this category offer long-term livability and strong resale value.
Don’t wait for prices to climb higher. Contact Homesphere Real Estate today to secure your property at today’s value.
Investment Appeal: High Yields and Future Growth
Dubai continues to outperform global markets in terms of rental returns. In areas like Dubai South, Motor City, and Dubai Healthcare City, investors are earning rental yields of 9% or more. Properties in Dubai Investments Park and Discovery Gardens are reporting yields up to 11% (Bayut, 2024).
Couple that with Dubai’s investor-friendly policies, relaxed visa rules, and streamlined property ownership laws, and you have a market primed for long-term growth. One of the most attractive incentives for property buyers is the UAE Golden Visa. Investors who purchase a property valued at AED 2 million or more are eligible for a 10-year renewable residency visa. This provides not only long-term security for individuals and their families but also enhances the appeal of investing in Dubai’s real estate sector.
According to The National, with over 150,000 new residential units expected by 2028, buying now puts you ahead of future demand.
Strategic Timing: Why Buying Now Makes Sense
Although more supply is scheduled for delivery between 2026 and 2028, current inventory remains tight. This creates a limited window for buyers to lock in competitive pricing before further appreciation. Dubai’s super-cycle of value and transaction volume growth is expected to continue, making now a strategic time to enter the market.
Prices for mid-tier apartments have already increased by 12% to 40%, and villa prices by up to 41% in some areas (Bayut, 2024). Waiting could mean paying significantly more for the same property.
Own Your Future with Homesphere Real Estate
In a city where demand is rising and rents show no sign of slowing down, buying properties in Dubai is a smart move for anyone planning to stay for the medium to long term. Whether you’re looking to live, invest, or retire in Dubai, ownership offers control, stability, and lasting financial benefit.
Homesphere Real Estate, a leading real estate agency in Dubai, is here to guide you every step of the way. From market insights to exclusive listings, we offer personalized support to help you find the right property at the right time.
Ready to explore your options? Contact us today to learn more about luxury properties for sale, flexible payment plans, and exclusive investment opportunities in Dubai.