The term Millennials also are known as Generation Y is usually referred to individuals who were born between 1981 and 1996. More individuals from this age group are now pursuing home-ownership more than ever before in Dubai.
Millennials in Dubai are starting to make their way onto the property ladder causing a significant increase in the number of first-time buyers, in fact, millennials are now considered to be the driving force of Dubai’s real estate market.
But what did cause this huge shift in more millennials wanting to buy their own property rather than just renting a flat, below we have listed top reasons why buying your own home at a younger age is a smart investment.
It is actually cheaper buying than renting
Now, this might seem bit odd but think of it this way, your property will continue to increase in value, and within a few years, you can sell the property at a decent profit mark. On the other hand, if you were to rent a property instead of buying one now and the value of the property rises, you will have to pay more in rent.
Most Dubai banks offer mortgage plans, this means if you do not have immediate amount to buy the property, you could apply for a mortgage. Over the past few years, mortgages have doubled in Dubai, this clearly shows that more and more people understand the benefits of buying a house over renting.
Equity is defined as the difference between the market value of your home and the amount you owe the lender who holds the mortgage or in other words equity is the amount of your home that you actually own. Once you start paying your mortgage, the amount of equity you have in your home will gradually increase. And unlike just paying for your monthly rentals, you are actually securing your home and eventually will be the sole owner of the property.
Benefits from inflation
Inflation is the rate at which the general level of prices for goods and services is rising and consequently, the purchasing power of currency is falling. This means that the purchasing power of one Dirham today will not be the same in a few years, it will be much lesser. Remember how everything was way cheaper back in days?
As the inflation phenomenon might seem natural, it is of great advantage to property investors. This is because if an investor buys a property today and sells it at the same price years later he/she will still be at a profit since the price value of the money now is not the same, keeping in mind that selling the property at the same price after a few years is almost never the case, usually much higher.
The real estate market in Dubai now attracts first-time buyers more than ever, this is because of different developers tailor fitting their products to meet the needs of the millennials, making it possible for first-time buyers to invest in Dubai’ real estate market. Some of the strategies developers use to encourage first-time buyers include:
Now more than ever, there are many projects that are actually affordable in the market, thanks to the healthy competition between top developers. Making it possible for the younger generation to own a property in Dubai.
You could also read our article on “ 7 real estate investments that cost less than a million ” to get an idea of what you could get for a relatively decent price in Dubai.
Flexible payment plans
Most will argue that initial payments are high when buying a property, while this might be true for some cases, most developers in Dubai offer attractive payment plans in recent years. If you have a look at our ready or off plan property listing sections you could see some of the attractive payment plans our developers provide, with some initial payments up-to 5% only.
Young investors now could go for longer payment plans which most developers offer, some of these elongated payment plans could even extend to after handover. These stretched out payment plans made buying a property in Dubai a viable option to first-time buyers.
Millennials like to be in close proximity to everything they would need throughout their day, this means they want to have gyms, swimming pools, spas, coffee shops, parks, supermarkets and restaurants within their community.
Developers in Dubai are clearly listening carefully to millennials needs as most communities in Dubai offer all the necessary amenities within the community.
It is a known fact that millennials love their gadgets and new technologies. That is why leading developers always make sure the developments are very tech-friendly by providing high internet speed, plenty of charging points, and convenient cellular service.
In summary, affordable prices and flexible payment plans made it possible for millennials to buy property in Dubai making them the driving force of Dubai’s real estate market in 2018. And with real estate developers continuously encouraging this group of young first-time buyers, we could only expect this number to even be higher in 2019.
We hope this article was helpful if you are interested in buying a property in Dubai feel free to get in touch with one of our expert agents by clicking on the “Book a Meeting” button below or use the chat box to write us your inquiry.
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