The United Arab Emirates is a place with fascinating landscapes, a year-round sun and a dynamically developing real estate market. If you are preparing to become a happy owner of your own home in the UAE, it will be useful for you to know the key reasons that shaped its value. Let’s learn about them.
What determines apartment prices in the UAE
According to the Legatum Institute, an independent London council, the United Arab Emirates is the most comfortable Arab country to live in. The cities of Abu Dhabi and Dubai, UAE, take the 15th and 35th places in the ranking of the world’s most liveable cities. In many ways, these reasons explain the real estate demand and the high interest from foreign tourists. But what do prices actually depend on?
The property location can greatly affect the final housing cost. For example, a 1-room apartment in the center of Dubai, with a convenient transport interchange and other benefits of a large city within walking distance, is more expensive than similar housing options in residential areas. This factor remains relevant in 2021.
This is one of the first things that potential buyers evaluate when choosing an apartment. Apartments with panoramic windows play an important role in aesthetic perception. The landscapes outside the windows are a kind of extension of the interior, especially when we are talking about an apartment in the center of a modern metropolis. This factor is highly-valued in the UAE real estate market and is properly marked into the price. Apartments with city views in Dubai can cost from 7 000 000 AED.
The view from apartment windows can be very diverse, but the key factors constituting its price are often:
- Metropolis view. Often this is housing in new buildings located in upmarket areas of the city. It offers a gorgeous view of high-rise buildings, shopping malls, and highways.
- The historical city center. There could be whole districts with beautiful architectural constructions built in the last century.
- Sea view. Such apartments are of a special category and can be rated higher than the rest of the other ones due to their exceptional location and unique views.
- Highway view. The high road lights can be no less attractive and romantic than skyscrapers. You can enjoy this picture for hours and get a vivid impression of such a landscape at night.
- Green areas. A park view or green spaces from the apartment can provide you with the feeling of a spacious view. Also, the contemplation of green areas positively affects your mental health and has a calming and soothing effect.
3. Accessible infrastructure
The comfortable environment and the nearby location of key infrastructure facilities are important indications that are appreciated at all times. In 2021, the UAE real estate market offers a lot of options for apartments in well-maintained areas with parks, shops, entertainment centres, cosmetic salons and other benefits. Such apartments can cost from 1000 000 AED.
4. Places nearby
What is around your home can also have a big impact on the price. A nearby school, a favourite entertainment center or any other place that your family often visits undoubtedly affects the apartment cost. In the future, this reason will also play an important role in the housing market.
5. Average price for apartments nearby
The cost of real estate near the apartment you like can seriously affect its value. If a similar apartment in the next block is sold for 1 million AED, it is reasonable to assume that the apartments nearby cost no less, especially if we are talking about a residential complex in the city center or on the coast.
6. Availability of recreation areas
The residential complex in which the apartment is located is a significant factor in the price formation. The maintenance service of swimming pools, gyms with modern fitness equipment, spa salons, recreation areas for adults and children require the hiring of special employees, which is also quite expensive. Usually, the amount for the maintenance service and the existence of a recreation center in a residential complex is included in the apartment price. Security and exclusivity are also bonuses that people are willing to pay for. Properties with amenities are more expensive than properties with fewer conveniences, or without. Rhis will also be relevant in 2021.
7. Sea view
The sea view from the apartment window definitely affects the property cost. Such an apartment will be much more expensive than housing that does not have a sea view. This indicator can be grouped into the category of complex[JC1] , since how near the apartment is to the beach is also important. Housing on the first line has direct access to the sea.
8. Layout and general object condition
These are probably the fundamental factors of price formation. Buyers will always highly appreciate convenient layouts with no extra corners. The general object condition includes the state of repair and the year of building construction. They also affect the buyer’s general perception.
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