8 factors affecting apartment costs in the UAE in 2021

8 factors affecting apartment costs in the UAE in 2021

The United Arab Emirates is a place with fascinating landscapes, sunny weather practically all year round, and a dynamically emerging real estate market. For most people, the last reason alone is enough to settle down here permanently. So if you are preparing to become a happy owner of your own home in the UAE, it will be useful for you to know what the main factors are that are responsible for determining and affecting apartment prices today. Let’s have a read through the rest of this article to learn more about this.

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. Furthermore, the cities of Abu Dhabi and Dubai, which are both located in the UAE, rank 15th and 35th, respectively, on the list of most livable cities in the world. So in many ways, these reasons explain the real estate demand and the high interest from foreign tourists. But what exactly do apartment prices in the UAE depend on?

1. Location

The apartment’s location can greatly affect its final cost. For example, a one-bedroom apartment in the heart of Dubai with convenient transport infrastructure, as well as, other benefits that are within walking distance of living in a large city, all of this is more expensive than similar housing options in residential areas. So location is very much a key factor when it comes to determining the price of an apartment and is still relevant in 2021.

2. View

This is one of the first things that potential buyers evaluate when choosing an apartment. So apartments with windows that display attractive landscapes play an important role in aesthetic perception. More importantly, the landscapes outside the windows are seen as 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 therefore marked into the price accordingly. Furthermore, in Dubai apartments with views of the city can cost from 7 000 000 AED onward.

Although the views from apartment windows can be very diverse here in the UAE, the key factors responsible for their price are often:

  • Metropolis view. Often apartments are located in new buildings in upmarket areas of the city. As such, it offers gorgeous views of high-rise buildings, shopping malls, and highways.
  • The historical city center. There are whole districts with beautiful architectural constructions that have been built in the UAE over the last century. This makes for some rather interesting, unique, and unconventional everyday scenery.
  • Oceanview. Apartments with an ocean view fall under 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 the skyscrapers. You can enjoy this picture for hours and get a vivid impression of such a landscape at night.
  • Lush green areas. A view with a park or green open spaces from the apartment can provide you with the impression of an expansive view. Also, it has been scientifically proven that green areas positively affect one’s mental health and overall have a calming and soothing effect on one’s behavior.

8 factors affecting apartment costs in the UAE in 2021

3. Accessible infrastructure

In the UAE, the comfortable environment and the nearby location of key infrastructure facilities are important factors that are always taken into consideration and appreciated at all times. Therefore, it should come as no surprise that as of 2021, the country’s real estate market offers a lot of options for apartments in well-maintained areas with parks, shops, entertainment centers, cosmetic salons, and many other services. Although, such apartments can cost from 1000 000 AED.

4. The surrounding area and places nearby

The surrounding area of your home can also have a big impact on how much it will cost. For example, a nearby school, your favorite entertainment center or any other place that you or your family often visit will undoubtedly affect the cost of the apartment. So this factor will begin to play an increasingly more significant role in the housing market as time goes on.

5. Average price for apartments nearby

The cost of real estate near the apartment you like can seriously affect its value. For instance, 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 near the coast.

6. Availability of recreational facilities

The residential complex in which the apartment is located plays a significant role in how the price is formulated. In addition to this, there is also the maintenance service of swimming pools, gyms with modern fitness equipment, spa salons, and recreational areas for adults and children all require the hiring of special employees. As such, it’s quite expensive when taking all of this into consideration. Although, usually the cost for the maintenance service and that of the recreational center in a residential complex is included in the apartment price. Also, security and exclusivity are added benefits that people are willing to pay for. So properties with the necessary or extra conveniences are more expensive than properties with fewer conveniences or even without. This is another important factor that will also still be relevant in 2021.

8 factors affecting apartment costs in the UAE in 2021

7. Ocean view

The ocean view from one’s apartment window definitely affects the property cost. Such an apartment will be much more expensive than housing that does not have an ocean view. This indicator can be grouped into the category of complex [JC1] since how near the apartment is to the coast is also important. Furthermore, apartments on the first line have direct access to the ocean.

8. Layout and general condition of the property

These are probably the most basic factors to take into consideration when formulating prices for property. So with regards to the layout, buyers will always highly appreciate convenient layouts with no extra corners. And with regards to the general condition of the property, buyers will always look at the state of repair and the year the building was constructed. So all of this generally affects the buyer’s overall perception when they’re looking to purchase a property.

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