Question: My rent has increased quite a lot since 2021, but buying still feels out of reach. How are families supposed to stay in Dubai for the long-term any more? JA, Dubai
Answer: This is one of the most common concerns I hear today, especially from long-term residents who have built their lives here. Over the past four or five years, Dubai’s rental market has experienced a sharp upwards cycle, mainly driven by population growth, corporate relocations, new business formation and strong lifestyle migration. For many families, this has created genuine financial and emotional pressure.
However, we are now entering a different phase. I believe we will start to see rental growth slowing and, in many areas, stabilising. This happens when affordability limits are reached. At a certain point, tenants simply cannot absorb further increases, and landlords are forced to become more realistic. We are already seeing this play out in many apartment communities, where negotiations are becoming more balanced again.
At the same time, families are adapting their housing strategies. Rather than focusing solely on central locations, many are discovering greater value and lifestyle benefits in emerging suburban communities that offer larger homes, better schools, green spaces and improving transport connectivity. These areas often deliver better quality of life at a more manageable cost.
Dubai is also transitioning into a long-term residential city, rather than a purely transient expat hub. This means infrastructure investment such as roads and transportation improvements and additions, community planning and housing supply are increasingly geared towards families and permanent residents.
For many households, sustainability now comes from repositioning expectations, exploring new neighbourhoods, and planning housing decisions over a longer time horizon. The market is adjusting, and while challenges remain, it is becoming more balanced again. My advice would be to change your expectations when it comes to renting by looking at areas that might require more commuting or if you do decide to buy, look to seek out those developers that have great payment plans that will help by spreading the cost over years at interest free levels. That’s because the payment plans for developers are not subject to any additional costs.
Q: I have been watching the Dubai real estate market for a while now, trying to understand its dynamics. I am a first-time investor keen to enter this market but with so many off-plan launches happening, how do buyers separate genuinely strong projects from speculative ones? AP, Dubai
A: This is arguably one of the most important questions buyers should be asking today.
Dubai’s off-plan market is vibrant, innovative and definitely fast-moving, but that also means it can be noisy and overwhelming. Not every launch represents equal value or carries the same risk profile.
The first and most important filter is developer credibility. Buyers should focus on companies with a proven delivery record, strong financial backing, transparent sale and purchase agreement structures and a history of completing projects on time and to specification. A well-established developer reduces execution risk.
Having said that, there are developers that may not have executed projects here in Dubai yet but have done so in their respective countries, so it's important to do your due diligence. All developers cannot start selling without ownership of the land and an escrow account opened in the name of the project, this is in place for the protection of all investors.
Location is equally critical. Projects within established or fast-maturing communities tend to outperform those in speculative fringe zones that rely heavily on long-term master plans. Infrastructure, road connectivity, schools, retail and employment access all influence long-term value.
Another key factor is product positioning. Well-designed layouts, efficient floor plans, realistic pricing, what amenities and facilities will be offered and broad resident appeal usually indicate thoughtful development. Projects that rely purely on marketing hype, headline discounts or unrealistic projections often struggle once delivery approaches.
In today’s market, successful off-plan investment is less about chasing early entry and more about selectivity, patience and quality filtering. One word of caution though, as I mentioned, off-plan is fast paced so do take your time to choose but once you have done so, make sure you are decisive in your execution.
The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@allegiance.ae
