Generation Z will become the majority buyer as the market sees a significant shift in investor profiles.
Gen Z Driving a Shift in Dubai’s Real Estate Market
Trends such as sustainable living and smart home technology integration are gaining traction among a new generation of buyers. Dubai’s residential property market is undergoing a paradigm shift, with Generation Z expected to soon become the majority of buyers, industry experts say.
Developers are now adapting concepts and designs of new projects to align with the preferences of younger buyers.
Younger Buyers Taking Over the Market
“The Dubai housing market is witnessing a significant shift in buyer demographics, with the average age of buyers steadily decreasing,” said Ankur Aggarwal, chairman and founder of BNW Developments, in an interview with Arabian Business.
- Millennials (born in the late 1980s and early 1990s) currently dominate the market.
- Gen Z (born in the late 1990s) is expected to take over soon as the majority of home buyers.
Aggarwal highlighted that this marks a major shift compared to the past decade when property buyers in Dubai and the UAE were significantly older.
Why Gen Z Prefers Homeownership in Dubai
According to Farooq Syed, CEO of Springfield Properties, the rise of Gen Z as homeowners is transforming Dubai’s real estate market.
Key reasons why Gen Z is investing in property:
- Rising rental costs
- Flexible working conditions
- Dubai’s appeal as a global hub for talent, innovation, and high living standards
Other industry players confirm an increased demand for property bookings from young investors in upcoming projects.
Economic and Financial Factors Driving Young Buyers
Experts attribute Gen Z’s increased real estate investment to:
- Economic diversification and strong GDP growth
- Government initiatives to attract global talent
- Low interest rates and easy repayment plans offered by developers
These factors enable and encourage younger buyers to enter the market, boosting demand for properties across different segments.
Smart Homes and Innovation: Gen Z’s Impact on Real Estate
Generation Z is driving innovation in Dubai’s real estate market. Developers are now incorporating:
- AI-powered automation
- Energy optimization systems
- Advanced smart security
- IoT-connected appliances
“Smart home technologies are becoming standard features in modern projects, reflecting the values and preferences of Generation Z,” said Aggarwal.
With Gen Z’s increasing demand, Dubai’s property market continues to expand and mature, as reflected in recent market data.
Growing Interest in Neighborhoods Outside City Centers
Industry representatives highlight that confidence in Dubai’s suburban real estate market is rising as younger buyers enter the market.
- In 2024, investor interest shifted toward emerging neighborhoods outside city centers.
- Dubai South and Jumeirah Village Circle (JVC) have gained momentum among young home buyers.
- Market data from Q3 2024 shows that affordable housing segments appreciated by up to 12% during the period.
“This complements established areas such as Dubai Marina, Business Bay, and Dubai Silicon Oasis,” said Aggarwal. However, he noted that Downtown Dubai and Dubai Marina remain key investment destinations.
AI and Digital Tools Transform the Home Buying Process
Farooq Syed emphasized that virtual tours, AI-powered property recommendations, and digital shopping platforms have made home buying more seamless and attractive for young buyers.
As a result:
- Brokerages are implementing AI-based tools and advanced digital platforms to meet the expectations of tech-savvy buyers.
- Developers are offering a variety of housing options, ranging from affordable properties to ultra-luxury, sustainable, and tech-enabled homes.
“As the industry evolves, developers and brokerages are adapting to this new reality,” said a senior manager at Springfield Properties.
