2 weeks Ago
A wave is sweeping through the real estate market, and it's led by Generation Z. In 2024, they have been responsible for almost 12% of total real estate transactions in the UAE, according to data. As members of a tech-savvy and socially conscious generation begin to explore home ownership, they are bringing fresh priorities that are shifting the landscape.
Developers, agents, and sellers who want to thrive in this evolving market must understand the distinct values and preferences that guide Generation Z’s housing choices. No surprises here, but the Gen Z approaches home buying with a digital mindset. They start their search online to research on properties long before they contact an agent.
Virtual tours, online reviews, and immersive experiences like augmented reality (AR) and virtual reality (VR) are becoming essential to capturing their interest. For real estate agents, a strong online presence isn’t optional anymore, it’s a necessity. It’s not just about being visible online.
Gen Z expects a seamless digital experience, with easy access to information. For example, Dubai Properties now offers immersive virtual tours, allowing buyers to explore their projects in detail from home. Using 3D technology, these tours showcase everything from interior layouts to outdoor views, helping buyers experience each space as if they were there in person.
The Gen Z is stepping into adulthood with a keen sense of financial pragmatism. For them, affordability is key, and they’re willing to prioritize smaller, practical living spaces over larger, more expensive homes. Rather than striving for the traditional ‘dream home’ right away, Gen Z is likely to start with studios or co-living arrangements.
These options provide affordability while still maintaining proximity to urban centers where many young buyers want to live. Leading developers in the UAE have responded to this budget-conscious mindset by offering highly flexible post-handover payment plans starting from 1% per month, making homeownership more accessible for such buyers. Sustainability is a core value for Generation Z - they actively seek out homes that reflect their eco-conscious lifestyle.
With large scale projects such as Sharjah Sustainable City achieving a sales transaction value exceeding Dh2.5 billion, it is clear to see that sustainability isn’t just a feature — it’s a way of life. While affordability is critical, the Gen Z still values location.
Walkability, access to public transportation, and proximity to social hubs are top considerations. Urban and suburban areas that offer these conveniences, while still being affordable, are prime targets for this generation of buyers. The RTA has launched the Metro expansion plan for up to 2030.
The additional 32 metro stations will be crucial in linking major emerging areas, like Dubai South, to established urban hubs. Gen Z values real-world connections and a sense of community. They are drawn to housing options that foster social engagement, whether it’s a co-living space or a neighbourhood designed with shared communal areas.
Developments that encourage interaction, while still offering privacy, strike the perfect balance for this group. The Hive at JVC has pioneered the co-living model that encourages connection and networking among like-minded residents. With shared amenities like a restaurant, flexible workspaces, an outdoor cinema, and a gym, Hive offers spaces for socializing and productivity.
This community-driven approach redefines is something the Gen Z is craving for. To attract these young buyers, developers, agents and sellers will need to adapt to their unique blend of digital fluency, financial caution, and eco-consciousness. Those who adapt to their needs will thrive - those who don’t may struggle to keep up.
The writer is with Zabadani Real Estate..
