If you are looking for a real estate in Dubai in 2023 then the current real estate prices are something that you want to be aware of. How much will you pay for an apartment or a villa in the UAE and where is the best place to buy property in the UAE in 2023? Let’s have a look at the detailed information from market experts.
The thought of owning property in Dubai is on the minds of many people. Real estate there can be used for both permanent residence and recreation, not to mention the potential financial benefits it offers.
One of the questions that many people have is: what is the cost of real estate in the United Arab Emirates? In this article, we will look at how much you can pay for apartments and houses in the Emirates and what kind of return on investment it can bring.
Table of Contents
Factors affecting the value of real estate
The principles of pricing in Dubai are not much different from any other real estate market. The cost of apartments, studios, villas and townhouses is directly affected by a number of the following factors:
- Location;
- Construction stage;
- Offer status – elite, economy class, comfort;
- The area and layout of the property itself;
- Condition of interior decoration.
An interesting fact that distinguishes the UAE market from other real estate markets is that here proximity to the centre does not matter much in terms of pricing. Each of the districts is built with the creation of its own community centre containing social amenities, recreational infrastructure and shopping galleries.
The age of the house also does not determine its value. In some cases, properties built ten years ago can cost more than newly created ones. In addition, the price of housing in the UAE depends on the privacy of the residential area: housing in club settlements will cost more than in open-type settlements.
Housing costs in Dubai
Running a little ahead, we note that it is almost impossible to give an unambiguous answer to the question of how much real estate in Dubai costs. It is necessary to take into account a large number of aspects, which we talked about above. In general, if we take the status of the residential complex as a basis, then the picture looks like this:
- The cheapest economy class apartment cost for 1 square meter – AED 10,700
Cost per 1 square meters in dollars – $2,800
- Average prices for comfort class apartments for 1 square meter – AED 23,100
Cost per 1 square meter in dollars – $6,100
- The most expensive elite-class apartments, price per 1 square meter – AED 39,600
Cost per 1 square meter in dollars – $10,450
For example, a small studio in the Easy 18 residential complex from Townx will cost about $122,235. With this money, you get housing in a complex that has its own territory with landscape design and recreation areas – playgrounds and sports grounds, parking for cars.
In prestigious areas of Dubai, such as Palm Jumeirah, Dubai Marina and others, the cost of apartments, of course, will be higher. For example, in the residential complex The Palm Beach Tower, the minimum market price of apartments today is $888,859. In Serenia Residences the prices start from $1,448,216. However, one must take into account the fact that the level of income from investments here will be much higher.
Prices for villas and townhouses in Dubai
As well as in the situation with apartments, a large number of different factors affect the market price of houses in the UAE. Prices start at $900,000 (AED 3,303,000) and can reach $50-70 million.
By purchasing a luxury residence in any of the emirates of the United Arab Emirates, you not only become the owner of an incredible home in a wealthy country, but also acquire a valuable asset, the wise use of which can later bring financial benefits. Income can be earned from reselling or renting out your mansion. The resulting profit will not be taxed – this is a big plus for investors.
The annual maintenance fee, which must be paid by homeowners, is for the upkeep of the building and its surroundings. This fee is determined by taking into account factors such as the area and occupancy of the villa, with prices ranging from $15 to $59 per square meter. Utility bills are likely to be between $19,000 and $27,000 a year.
What will happen to the Dubai market: expert forecasts
The experts were able to analyse the statistics from the beginning of 2023. It is noteworthy that just a few transactions since January 1 have already brought property sellers on Jumeirah Bay over 2 billion dirhams. It is expected that they will begin to generate income for their owners this year: due to the limited supply, their cost will begin to rise.
Based on market research data, it can be concluded that the Dubai real estate sector is set to see a significant recovery in 2023, with a projected 46% increase in residential property values. Industry experts argue that this surge will be driven primarily by foreign investors seeking to maintain and grow their wealth amid the current volatility in global politics and the lack of energy sources around the world.
Note that over the past year, the cost of real estate in Dubai has increased by 20-40% on average. At the same time, in the Palm Jumeirah area, apartment prices rose by 59%, and in Trade Center First by 210%. Housing prices in the most budgetary area of Wadi Al Safa 2 increased by 10% and amount to about AED 425,000 (about AED 1,560,961).
Real estate in Dubai
Emirates.Estate website offers its visitors a database in various areas of Dubai. Check out how quick and easy your search for a property in the city may be, just define the budget you are ready to spend, figure out the features that matter the most when purchasing a real estate and then voila, the search begins and you are one step closer to your dream house in the United Arab Emirates.
