The real estate world has seen a flurry of action lately. From the COVID-19 slump to a gradual bounce back in the demand for personal and professional spaces, the sector is now well-paced for growth. In the UAE, real estate has long enjoyed tremendous scope and continues to receive attention from global investors.
While market-linked factors impact real estate, demographic factors can also make a noticeable difference. These aspects help players understand their audience and tailor their offerings accordingly.
As of 2025, the three demographic factors below are driving the real estate sector in the UAE, and many are also translating to other markets.
1. Growing Interest From The Expat Population
The UAE has become a hub for expatriates, particularly professionals working in sectors like technology and hospitality. In August 2025, the Dubai Statistics Center highlighted that the city’s population was set to cross four million. It marked a sizable increase of 3.5% since the start of the year. A considerable proportion here comes from expats.
Many expats are starting to show interest in real estate investments. Motivating them in this decision are major draws of destinations like Dubai, a city that offers excellent infrastructure and transport. Dubai real estate investors also stand to benefit from the taxation policy, which does not require one to pay tax on rental income.
Expats considering real estate investments can benefit from professional consultation and handholding during the often long process. According to RD Dubai, the investment strategy you choose should sync with your long-term financial objectives. This will also be important for expats who may eventually want to transform from renting to ownership.
Much like the UAE, many parts of Europe are also experiencing a real estate boom due to a rising number of expatriates and significant foreign interest. For example, Portugal and Spain have attracted many buyers lately due to their lower cost of living than some other Western European nations. Some destinations, such as Greece, offer residency permits to real-estate investors.
2. Younger, Sustainability-Focused Buyers
Gone are the days when real estate buyers inched close to retirement or entrepreneurs with deep pockets. Many modern buyers are much younger. They are able to afford even luxury properties due to well-paying jobs and multiple sources of income.
For example, some studies predict that millennials and Gen Zers in India will make up 60% of homebuyers by 2030. In Australia, although the average age of first-time homeowners is around 36, a sizable chunk of 20-somethings also invest in real estate. This group has surprisingly substantial savings, thanks to living at home and making conscious decisions.
Younger investors often value sustainability more than their older counterparts. They have witnessed the risks of climate change firsthand, from flash floods to devastating hurricanes. A 2024 Deloitte report highlights that this section of the population feels anxious about climate change and proactively tries to align behaviors with environmental values.
In line with these developments, many real estate companies now build sustainable homes. These properties are energy-efficient and actively limit their carbon emissions. PwC observes that homebuyers in the UAE search for innovative features, such as renewable energy sources and green spaces. Properties that can meet these demands can also ask for a price premium.
Of course, this demographic trend is not true of every location. In the US, high mortgage rates have made it challenging for Gen Zers and millennials to purchase homes. It has pushed the median age up considerably over the last decade (56 years in 2024). This difference further points to the need for real estate developers to align with individual priorities.
3. More Luxury and Innovation Seekers
Another hyper-visible demographic trend affecting multiple sectors is the growing number of connoisseurs. Of luxury, design, and function. In today’s world, many investors are reluctant to get on board unless the property has an innovative edge over its competitors. These differences could stem from aesthetic uniqueness or functional elements.
Construction Dive highlights climate modeling as integral to innovative building. As global warming worsens, buildings will need to move from minimum standards to stronger resilience measures. That said, luxury is also growing alongside, manifesting as intriguing interior elements, color palettes, and fixtures that spell magnificence.
In the UAE, waterfront communities often attract luxury buyers. Nowadays, more builders are focusing on exclusivity that feels harmonious with natural surroundings.
It is likely that this sector will see even more progress as luxury seekers establish businesses in the UAE and homebuyers join the Golden Visa program. The UAE government allows extended residence to these visa holders for up to ten years.
Whether you are looking to buy for personal residence or business investment, considering demographic changes will be crucial for making a balanced decision. They will directly impact the kind of workforce you can expect for your company and the quality of schools your children can attend.
Professional guidance from market watchers and consultants can help strengthen your decisions. They can identify potential oversights you may not have considered and also ensure alignment with your financial priorities.
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