Exploring Subscription-Based Models in Dubai's Real Estate Market

Subscription-based real estate is becoming a popular alternative to owning a home. Instead of buying property or signing long-term leases, people pay regular fees to live in a home, just like subscribing to services like Netflix or Spotify.

This model is especially appealing to younger people and those who move around a lot.

The big question is: Is Dubai, known for its fast growth and innovation, ready to adopt this new approach?

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What is Subscription-Based Real Estate?

Subscription-based real estate allows people to rent fully furnished homes without long-term commitments. Companies like Blueground and Sonder provide this kind of service, where customers can book homes for as long or short a time as they need. This model works much like streaming services, but for places to live. It has been successful in countries like the U.S., UK, and Southeast Asia (Sonder, 2023).

Dubai’s Real Estate Market

Dubai's real estate market is booming. In January 2025, the total value of real estate transactions hit AED 35.2 billion (around USD 9.6 billion), showing a strong demand (DXB Interact, 2025). Dubai also has policies that attract international investors, such as areas where foreigners can fully own property and long-term visas for buyers. The city’s plans for the future, like the Dubai 2040 Urban Master Plan, focus on making the city more livable, sustainable, and innovative—factors that could help subscription-based housing models grow (Forbes Business Council, 2024).

Technology and Innovation

Dubai is also investing heavily in technology, which is essential for subscription-based real estate. In 2023, the Dubai Land Department launched a space to promote digital innovation, including the use of blockchain and AI for property pricing and management (Economy Middle East, 2025). These technologies can help make subscription-based housing more efficient, with tools that allow for easy bookings and management.

Changing Demographics

Dubai's population is growing rapidly, with an expected increase to 4 million people by the end of 2025, driven by expatriates, entrepreneurs, and remote workers (Avangard Real Estate, 2025). Many of these people prefer flexible living arrangements that allow them to move easily. In fact, a 2024 report found that 68% of millennials in the UAE prefer flexible lease options (JLL, 2024). Subscription-based real estate is a perfect fit for these needs and could help solve issues with vacant apartments in higher-end buildings.

Challenges to Adoption

Even though the conditions are favorable, there are still some challenges to adopting subscription-based real estate:

• Regulations: Dubai’s laws mostly focus on property ownership and long-term leases. Subscription models fall into a gray area, which could cause problems related to tenant rights, taxes, and disputes (Forbes Business Council, 2024).

• Cultural Shifts: In Dubai, owning property is often seen as a status symbol. Moving away from ownership to a model based on access will require changes in how people think about property (Knight Frank, 2023).

• Quality Control: Maintaining high standards of service and quality across all subscription properties could be challenging, especially in a city known for its luxury living expectations.

Opportunities for Developers

Real estate developers have a chance to try new hybrid models that combine traditional investments with flexible subscription plans. This approach could create new ways to earn money while meeting the needs of modern renters. Using smart technology in buildings, along with app-based services, could help make subscription-based real estate fit with Dubai’s vision of becoming a smart city (Economy Middle East, 2025).

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Conclusion

Dubai's expanding real estate market, forward-thinking policies, and international allure position it as an ideal environment for the growth of subscription-based real estate. However, to achieve success, the city must address regulatory challenges, foster consumer trust, and shift perceptions regarding property ownership. If these obstacles are successfully navigated, Dubai has the potential to become a leader in this innovative approach to living and investing in real estate.

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References

Avangard Real Estate. (2025). Dubai Real Estate Market 2025: Essential Insights and Lucrative Investment Opportunities. https://avangard-re.com/dubai-real-estate-market-2025-insights-trends/

DXB Interact. (2025). Dubai Real Estate Market Surges to AED 35.2bn in Transactions for January 2025. https://dxbinteract.com/news/dubai-real-estate-market-transactions-january-2025

Economy Middle East. (2025). Dubai Real Estate Market: 5 Trends Investors Need to Know in 2025. https://economymiddleeast.com/news/dubai-real-estate-market-5-trends-investors-need-to-know-in-2025/

Forbes Business Council. (2024). Dubai Real Estate Market Forecast For 2025. https://www.forbes.com/councils/forbesbusinesscouncil/2024/12/13/dubai-real-estate-market-forecast-for-2025/

JLL. (2024). UAE Residential Market Outlook: Millennial Preferences.

Knight Frank. (2023). Global Cities Report. https://www.knightfrank.com/research/global-cities-2023

Sonder. (2023). Investor Relations. Retrieved from https://investors.sonder.com