Home ownership is increasingly becoming a reality for UAE residents, as a growing number of renters transition into buyers. Recent data from Dubai and Abu Dhabi highlights a clear shift away from leasing and toward long-term property ownership, driven by stronger buyer confidence, supportive government policies, and long-term residency plans.
Insights from Property Finder reveal sustained buyer intent across both emirates. In 2025, sales listing impressions in Dubai rose to nearly half of all platform activity, while rental demand continued to decline. A bi-monthly consumer sentiment survey further underscores this trend, with 70% of respondents in Dubai indicating plans to purchase a property within the next six months.
Abu Dhabi has mirrored this movement, recording a year-on-year increase in sales-focused searches. The data reflects a growing preference among residents to settle and invest in homes rather than remain in the rental cycle.
This shift has been strongly supported by long-term residency initiatives, ownership-linked visas, and programmes such as the First-Time Home Buyer Programme, which has enabled thousands of residents to enter the property market over the past year. First-time buyers are now a major source of demand, while existing homeowners are increasingly upgrading to larger or higher-quality residences as confidence in long-term settlement grows.
Buyer behaviour has also evolved. Home-seekers are allocating a higher share of their income toward mortgage payments, rising from 23% in 2024 to 31% in 2025, reflecting greater financial commitment and long-term planning. Preferences are clearly leaning toward more spacious and premium homes.
Apartments vs Villas
Apartments continue to dominate transaction volumes due to their affordability and wider availability. However, villas — supported by limited supply — have experienced stronger price growth, particularly as buyers seek larger family-oriented homes.
In Abu Dhabi, apartments remain the most in-demand residential format across a range of price points and locations. Within the villa segment, demand is increasingly shifting toward larger layouts, indicating an upsizing trend among families and long-term residents.
A Maturing Market
Across both emirates, the data points to a maturing residential market where property ownership is viewed as a lifestyle decision rather than purely an investment. Established communities such as Downtown Dubai, Dubai Marina, Palm Jumeirah, Business Bay, JVC, JBR, and Dubai Hills Estate continue to attract strong interest. Meanwhile, off-plan destinations like Dubai Islands and Maritime City are gaining traction, particularly among buyers seeking luxury and waterfront homes.
Industry experts expect the 25–35 age group to lead the next phase of market growth, driven by affordability, accessibility, and long-term financial planning. Home ownership is increasingly becoming a core part of younger generations’ future outlook, reinforcing the UAE’s position as a destination for permanent living, not just short-term residence.