Expat Survey 2025: Do More People Rent or Buy in Dubai?

Dubai has long been a magnet for expatriates seeking career opportunities, high-quality living, and a cosmopolitan lifestyle. With its thriving real estate sector, expats are often faced with a critical decision: should they rent or buy property? This decision depends on multiple factors including financial stability, lifestyle preferences, residency policies, and market trends.

A 2025 expat survey provides detailed insights into the current trends, showing whether residents prefer renting or buying, what drives their decisions, and how Dubai’s real estate market continues to evolve.

Understanding Dubai’s Expat Population

Dubai hosts over three and a half million expatriates, forming the majority of the city’s population. Expatriates in Dubai come from Europe, South Asia, the Middle East, and North America. This diverse demographic has shaped the real estate market, creating demand for both rentals and properties to purchase.

Expat life is defined by several factors. Many residents enjoy high disposable income, but short-to-medium-term residency often makes renting a more practical choice. At the same time, some long-term residents and families see buying property as a way to secure stability and investment returns.

Key Findings from the 2025 Expat Survey

The 2025 survey collected responses from over 5,000 expatriates, including professionals, families, and students. It revealed that more than 60% of expats prefer renting rather than buying property in Dubai. Flexibility is the main reason for this preference, allowing residents to relocate easily for work, lifestyle, or other personal reasons. Renting also requires lower upfront costs compared to purchasing a property and eliminates responsibilities for maintenance or service fees.

On the other hand, approximately 35% of respondents reported owning property, mainly long-term residents and families. Buying a property appeals to those who are seeking stability, long-term investment opportunities, and the ability to build equity. Family-oriented communities, such as Arabian Ranches, Dubai Hills Estate, and Jumeirah Islands, are particularly popular among buyers due to their spacious homes, schools, parks, and recreational facilities.

Factors Influencing Housing Decisions

Financial considerations play a significant role. Renting is accessible to a broader range of expatriates because it involves a smaller upfront payment and does not require registration fees, maintenance costs, or property taxes. Buying, however, typically requires a minimum 20% down payment, registration fees, and ongoing maintenance costs, making it more suitable for financially stable, long-term residents.

Visa and residency policies also influence the decision. Expat property ownership can be tied to long-term residency programs, including the Golden Visa, which allows investors to stay in the UAE for extended periods.

Lifestyle preferences matter as well. Many professionals prioritize flexibility and mobility, especially if their employment contracts are short-term or project-based. Renting accommodates frequent relocations and provides a convenient solution without the long-term commitment of ownership.

Market conditions also affect choices. Rising property prices in prime areas encourage some expats to rent temporarily while monitoring the market for opportunities to purchase at favorable rates.

Rental Market Trends in Dubai 2025

Dubai’s rental market continues to grow due to steady demand from expatriates. The market is characterized by flexibility, shared living options, and premium rental properties.

Shared accommodation has become increasingly popular, especially among young professionals and students. Sharing an apartment or villa significantly reduces monthly costs while providing a social environment. Areas such as Al Barsha, Jumeirah Lake Towers (JLT), and Discovery Gardens are particularly popular for shared rentals.

Flexible lease agreements are also becoming common. Landlords now offer shorter-term leases ranging from six months to a year, allowing tenants to relocate quickly without long-term financial commitments. Many rental processes are now digital, allowing tenants to sign contracts, make payments, and request maintenance online.

Luxury rentals remain in high demand among executives and high-net-worth expatriates. Apartments in Downtown Dubai, Dubai Marina, and Palm Jumeirah are sought after for their premium amenities, security, and proximity to work and lifestyle hubs.

Economic factors such as interest rates, inflation, and the cost of living also influence rental rates. Despite fluctuations, Dubai’s rental market remains strong due to its global appeal, safe environment, and modern infrastructure.

Property Purchase Trends Among Expats

While renting is dominant, property ownership among expatriates is increasing in 2025. Several factors drive this trend.

Investment opportunities attract many buyers. Dubai’s real estate market offers strong potential returns, especially in off-plan developments and emerging neighborhoods. Many expats view property not only as a place to live but also as a long-term investment that can generate rental income while appreciating in value.

Family-oriented communities are popular among buyers. Villas and townhouses in neighborhoods such as Arabian Ranches, Dubai Hills Estate, and Jumeirah Islands provide ample space, private gardens, and nearby schools, parks, and recreational facilities.

Government incentives and policies play a role as well. Programs like the Golden Visa encourage property ownership by granting long-term residency for high-value property investors. This has increased interest in purchasing properties in premium communities.

Financing options also make buying accessible. Banks in Dubai provide mortgages to expatriates, though eligibility depends on income level, visa status, and credit history. This has encouraged many long-term residents to transition from renting to ownership.

Comparing Renting and Buying

Expatriates often weigh several factors when deciding between renting and buying. Renting offers flexibility, lower upfront costs, and minimal responsibility for maintenance, making it suitable for short-term or mobile residents. Buying, on the other hand, provides long-term stability, the opportunity to build equity, and potential capital appreciation, which appeals to families and long-term investors.

Lifestyle choices heavily influence this decision. Young professionals or individuals on short-term contracts usually prefer renting to maintain mobility. Families or residents planning to stay in Dubai for many years often see purchasing property as a better long-term strategy.

Emerging Trends in 2025

Several new trends are shaping Dubai’s real estate market in 2025:

• Hybrid living models: Many expatriates rent initially and plan to buy within a few years, combining flexibility with future investment.

• Smart and sustainable housing: Energy-efficient apartments, smart homes, and environmentally friendly villas are gaining popularity.

• Co-living spaces: Shared, fully-furnished apartments targeted at professionals provide affordable housing while fostering community interaction.

• Luxury rental demand: High-net-worth expatriates continue to prefer renting premium apartments with full amenities rather than managing ownership responsibilities.

• Technology integration: Virtual tours, online contract signing, and digital payments have streamlined renting and buying processes, making the market more accessible.

Dubai’s real estate landscape in 2025 reflects a careful balance between flexibility and investment. While renting remains the dominant choice among expatriates due to mobility and affordability, property ownership continues to attract long-term residents, families, and investors seeking stability and potential returns. By understanding these trends, both tenants and developers can navigate the market effectively and make informed decisions in Dubai’s dynamic property environment.