They believe long-term investment benefits will outweigh the risks
Millennials in Dubai (aged between 25 to 37 years on average) are slowly stepping on to the property bandwagon, owing to attractive payment schemes and reduced housing prices. Up until a few years ago, the high barriers to entry in the UAE property market made most millennials resort to renting instead of owning a home. Those that are settled and secure in their jobs, maybe with a spouse who will help shoulder the costs, are turning their minds towards buying. However, they still make up only a small number in the total tally of property purchasers.
Being first time home buyers, millennials typically have lower budgets of between Dh1 million and Dh3 million.
Of the millennials that are buying property, most are doing so for their own use. Although they may buy to lease and get an income, they still have to pay rent somewhere else, which can be unviable.
Buyers in their 20s prefer to invest in apartments while millennials in their 30s are considering villa communities as they start to think about raising a family.
Smaller families with budget limitations are looking at smaller units, perhaps 1-bed or 2-bed apartments. Location is also key for millennials. Therefore, areas with good facilities and good accessibility are key. A good local gym, a super market and easy access to the major highways are always desired.
“Due to their age, they typically prefer a more modern design. Floor-to-ceiling windows, chrome fittings and sharp lines are the current fad. Jumeirah Lakes Towers, Dubai Marina and The Greens are on top of their priority list,” informs Bush.
Owing to their budget constraints, millennial buyers usually opt for affordable properties with special offers on payment plans and fee waivers. Developers are also customising their products by offering more attractive payment plans and flexible deposits to entice new buyers. More incentives such as free service fees for up to three years, interest-free bank payments of up to five years, discounts on Dubai Land Department fees and full payment up to five years after handover, are being offered.
“Millennials will look to off-plan if the terms suit them better. Owing to the high cost of entry, these properties suit the millennial buyer perfectly,” says Allsopp.