Generation Z will become the majority buyer as the market sees a significant shift in investor profiles.

Trends such as sustainable living and the integration of new technologies into homes are also gaining traction with a new group of buyers. Dubai’s residential property market is witnessing a paradigm shift in terms of the average age of homeowners, with Generation Z expected to soon take over as the majority of buyers, industry players said. Trends such as sustainable living and the integration of new technologies into homes are also gaining traction with a new group of buyers, forcing developers to adapt the concepts and designs of new projects to suit the new preferences of buyers that are currently coming to the fore. “The Dubai housing market is increasingly witnessing a significant shift in buyer profiles, with the age of buyers steadily decreasing,” Ankur Aggarwal, chairman and founder of Dubai-based BNW Developments, told Arabian Business. “While millennials, those born in the late 1980s and early 1990s, are currently leading the buying trends when it comes to housing in Dubai, it is expected that “Gen Z, those born in the late 1990s, will soon take over as the majority of buyers,” he said. Aggarwal said this is a significant shift from the buying trends seen in the past decade, when the average age of property buyers in Dubai – and the UAE – was much higher. Farooq Syed, CEO of Springfield Properties, said the rise of Gen Z as homeowners in Dubai is changing the face of the real estate market. “This demographic is preferring home ownership due to rising rental costs, flexible working conditions and Dubai’s global appeal as a hub of talent, innovation and high living standards,” Syed told Arabian Business. Other industry players said they were also seeing increased demand for bookings from an increasing number of young investors in their upcoming projects. Economic diversification, low interest rates and easy repayment plans are helping Gen Z invest in real estate. Industry experts said the UAE’s focus on economic diversification and higher GDP growth, coupled with investment and Policy initiatives to make the country an international hub for new technology and financial sectors have attracted a large number of young professionals from around the world to relocate to the Gulf nation, sparking a new round of demand growth in the property market there. Low interest rates and easy payment plans offered by developers are also among the main factors that have encouraged and enabled young buyers, they said. Syed said Generation Z is also a driver of innovation, forcing developers to adapt the concepts and designs of new projects to suit their new preferences. “Smart home technologies such as AI-powered automation, energy optimization systems, advanced smart security and IoT-connected appliances are becoming standard features in modern projects, reflecting the values ​​and preferences of Generation Z,” he said. Aggarwal said that with the further increase in demand from Generation Z, Dubai’s property market continues to expand and mature, as evidenced by recent data.‍Neighborhoods outside City centres gain popularity with new buyers Industry representatives said that along with the arrival of younger buyers, confidence in the Dubai property market outside the city centre is also growing. This trend was particularly pronounced in 2024, when the city’s residential property market saw a significant shift in investor interest, they said. Emerging neighbourhoods such as Dubai South and Jumeirah Village Circle (JVC) have been gaining momentum recently thanks to a new generation of young home buyers. Dubai’s market performance data for Q3 2024 also confirms the trend that the more affordable housing segment has seen significant appreciation, with prices climbing by up to 12% during the period. “This complements established areas such as Dubai Marina, Business Bay and Dubai Silicon Oasis,” said Aggarwal. However, the founder of BNW Developments said that Downtown Dubai and Dubai Marina still remain key investment destinations. Syed said that with the availability of virtual tours, property recommendations based on With the advent of AI and digital shopping platforms, the home buying process has become seamless and more attractive for young buyers. He added that this shift has also prompted brokerages to implement AI-based tools and advanced digital platforms to better meet the expectations of this tech-savvy generation. He added that this shift has also prompted brokerages to implement AI-based tools and advanced digital platforms to better meet the expectations of this tech-savvy generation. “As the industry evolves, developers and brokerages are responding by offering a variety of housing options, from affordable properties that complement the ultra-luxury segment to sustainable and technology-enabled homes,” said a senior manager at Springfield Properties.

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