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Tag: homeownership UAE

  • Dubai Property Market Shifts to Long-Term Investment Destination

    Dubai Property Market Shifts to Long-Term Investment Destination

    The average time for a renter in the UAE to become a homeowner has dropped to just 4.8 years, highlighting a growing shift toward long-term residency and ownership rather than short-term property trading, according to Nagham Hassan, market analyst at eToro, a trading and investing platform.

    The trend reflects changing buyer behaviour across the UAE property market. In 2025, data showed that the investor base expanded to more than 193,000 active participants, with resident investors accounting for over half of total investments by value — a trend analysts say reflects increasing market maturity and stronger long-term confidence in the UAE economy.

    Dubai has also launched the First Time Home Buyer Programme to support individuals seeking to purchase their first home in the emirate by offering a range of exclusive benefits that make it easier to enter the property ownership market.

    Industry experts noted that strong demand, fast-moving launches and limited supply in key communities are encouraging buyers to make quicker long-term purchasing decisions rather than waiting on the sidelines.

    Dubai recorded Dh252 billion in real estate transactions during the first quarter of 2026, up 31 per cent year-on-year, following a record-breaking Dh917 billion in transactions during 2025. Meanwhile, property prices rose 9.81 per cent last year, moderating from the double-digit gains seen in previous years.

    Despite heightened regional tensions earlier this year, Dubai’s property sector showed resilience. February transactions reached Dh84 billion before slowing to Dh56 billion in March as buyers briefly paused amid geopolitical uncertainty. However, sales rebounded 23 per cent in April to Dh69 billion, signalling renewed confidence in the market.

    The resilience has also extended to listed real estate developers, although share prices have lagged behind physical market performance.

    Emaar Properties entered 2026 with a revenue backlog of Dh163.4 billion, up 29 per cent year-on-year, while Aldar Properties reported a 12 per cent increase in revenue and a 22 per cent rise in EBITDA, alongside total liquidity of Dh38.2 billion.

    A resolution in the regional conflict would act as a catalyst, unlocking the pent-up demand that has already proven itself in the physical market and accelerating the repricing of both stocks toward their fundamental value.

    Analysts say the sector’s long-term outlook remains supported by escrow-protected sales structures, recurring income streams and strong project pipelines, making major UAE developers relatively insulated from short-term market volatility.

    The structural shift toward homeownership is further reinforced by Dubai homeowners now holding properties for periods comparable to mature markets like London and New York, reflecting the emirate’s maturation as a global residential hub.

  • ADIB and DAMAC Launch Home Financing Plan with 85% Loan-to-Value

    Abu Dhabi Islamic Bank (ADIB) and UAE real estate developer DAMAC Properties have unveiled a landmark financing solution designed to lower the barriers to homeownership for individuals and families across the Emirates.

    The comprehensive plan provides DAMAC customers with financing of up to 85 percent of the property value on handover, along with subvention equivalent to finance profit charges for up to six months. The offering also waives property valuation fees and includes complimentary property takaful (Shariah-compliant insurance), significantly reducing upfront costs for buyers.

    “True leadership is about anticipating the needs of the people you serve to meet aspiration with opportunity,” said Amira Sajwani, Managing Director of DAMAC Properties. “Through our collaboration with ADIB, we are making homeownership simpler and more affordable to individuals and families. In a world of rapid change, the dream of owning a home should be a constant, so we will continue to build pathways to stability and prosperity to support families in finding a place to call their own.”

    The partnership reflects a shared vision to enhance the homeownership experience and provide flexible financing solutions that support the sustainable growth of the UAE’s real estate sector. It also underscores both parties’ commitment to expanding homeownership opportunities and supporting the long-term stability of residents.

    Amit Malhotra, Global Head of Retail at Abu Dhabi Islamic Bank, described the partnership as “a clear demonstration of ADIB’s commitment to revolutionizing the customer experience as part of its vision for 2035.” He noted that by combining strategic collaborations with leading solutions, such as the bank’s new digital onboarding journey launched in February that reduced home finance application times from days to minutes, ADIB is making its vision of becoming the world’s most innovative Islamic bank a reality.

    The initiative arrives as the UAE removes minimum property value thresholds for residency visas, further opening the market to a broader pool of investors and first-time buyers. Recent data shows that property buyers continue to show strong intent despite expectations of price corrections, with 68% of active seekers planning to purchase within six months.

    The collaboration positions both institutions at the forefront of efforts to support residential ownership in line with the advanced position the UAE real estate market has achieved. By combining high loan-to-value ratios with reduced fees and insurance coverage, the plan addresses key financial obstacles that have traditionally hindered homeownership for many residents.