Car ownership in Dubai is one of the highest among global cities. Every person in Dubai owns two cars on average. This is very high compared to New York where less than half of residents own a car. This is also very high compared to London where over 70% of households do not own a car.

Car ownership a lower priority

Dubai is set to undergo massive transformation to reduce car ownership. A lot of stakeholders want car ownership to decline. Government wants to reduce traffic on the roads. Businesses want more opportunities in the car sharing economy. People in general want more options and flexibility. ‘Car as a service’ is becoming more of a norm than an exception. Here are 4 urban trends pointing to reduced car ownership in the near future:

Affordable housing to reduce daily commute

Currently there is a severe shortage of affordable housing. This means a lot of people have to leave home in Sharjah or Ajman and drive all the way to Dubai or Abu Dhabi. This results in morning traffic congestion. With affordable housing planned for Dubai South those trip times can reduce. A few projects for affordable housing have already been launched. More projects need go be launched at better affordable rates.

Attractive car leasing options

A 2016 Audi Q7 can be leased for 11,000 AED per month in Dubai. This is cheaper than buying 2016 Audi Q7 on a two year bank loan. Not to mention the benefit of driving a brand new car every year. Also, car leasing customers don’t have to go through the hassle of selling the car or dealing with insurance companies. Younger buyers view cars increasingly as a ‘pay for usage’ service rather than an asset to own. So cars are a monthly expense, similar to phone bills and house rent. Already in United States, approximately 30% of Millenial Buyers choose to lease instead of buying a new car.

Autonomous Cars

Dubai Government has launched a target of 25% autonomous vehicles by 2030. This means all possible forms of feeder transportation, public transportation and many short distance rides will be autonomous. So community based autonomous transport will become a reality.

Ride Hailing and Hourly Rentals

App based ride hailing services will encourage people to use cars on a ‘need to drive’ basis. This will further allow existing cars to be circulated wisely rather than adding more cars on roads.

EjarCar.com allows customers to book cars directly online with the convenience of delivery to your doorstep . Choose the car for the occasion and rent it as you need it.

What is your take on car ownership in Dubai? Comment with your feedback and drop us a line at support@ejarcar.com for questions.