Buy & rent - most expensive areas in Dubai in 2021

Content:

• Most expensive areas in 2021
• Purchase price of apartments and villas
  • Areas of interest with apartments
  • Areas of interest with villas
• Rental prices
• Price per square meter
• We will help you choose a property in Dubai

Most expensive areas in 2021

We will look at some of the most popular areas in Dubai based on the cost per square meter in this article. We will analyze the most popular properties based on information about requests for the last 12 months and, in particular, information from the first half of 2021.

Our focus will be on residential real estate as it is currently the most liquid commodity with the highest demand in the marketplace.

We will look at apartments and villas in terms of rental and purchase prices per sq. m.

Apartments - purchase per sq. m.:

• Downtown Dubai - $ 5,800 per sq. m.
• Old Town - 5 350 dollars per sq. m.
• Palm Jumeirah - $ 5,000 per sq. m.
• DIFC (FEZ) - $ 4,890 per sq. m.
• Dubai Marina - $ 4,275 per sq. m.

Apartments - rent sq. m.:

• Downtown Dubai - $ 318 per sq. m.
• Old City - 310 dollars per sq. m.
• The Views - $ 296 per sq. m.
• DIFC - $ 277 per sq. m.
• Dubai Marina - $ 270 per sq. m.

Villas - purchase sq. m.:

• Emirates Hills - $ 7,090 per sq. m.
• Palm Jumeirah - $ 6 635 per sq. m.
• Lakes (The Lakes) - $ 3 730 per sq. m.
• Jumeirah Islands - $ 3,570 per sq. m.
• Meadows - $ 3,320 per sq. m.

Villas - lease per sq. m.:

• Emirates Hills - $ 217 per sq. m.
• Palm Jumeirah - $ 205 per sq. m.
• Lakes - $ 200 per sq. m.
• The Springs - $ 168 per sq. m.
• Dubailand - $ 165 per sq. m.

Real estate purchase prices had increased significantly by mid-2021, demonstrating a consequence of the increasing influx of people to Dubai and leading accordingly to an increase in demand for real estate purchases, especially for completed real estate.

At the same time, rental rates are either at approximately the same level as before or slightly lower than in the previous period. This is explained firstly, by a shift in interest towards buying real estate on the part of investors on the eve of Expo 2020, and secondly, by a decrease in the activity of tenants who are in anticipation of the approaching 3-year freeze on leases.

Other market participants like developers, government organizations, and municipal authorities often pay attention to the number of square meters and their costs.

As a rule, these criteria are used to calculate the cost of maintaining real estate and paying for utilities and other services.

We will consider the cost per square meter of buying real estate and renting it and also provide a general overview of prices by area for July 2021.

Purchase price of apartments and villas

We will preliminarily list the most popular areas of Dubai in demand over the past 12 months and provide a separate list of apartments and villas.

Let us try to briefly analyze each of the mentioned areas.

Areas of interest with apartments

In terms of interest in apartments, the leading positions are occupied by the following districts:

Dubai Marina

This is one of the most expensive areas in Dubai with over 200 premium residential properties. There is quick access to schools, medical facilities, a large number of high-end shops, and entertainment centers. The main residential sector in this area is apartments. The most popular categories are studio apartments and 1- or 2-bedroom apartments.

• On average, the price for a studio is around USD 3,810 per square meter.
• Return on investment (ROI) is approximately 6%.
• The average rate for 1-bedroom apartments is $ 3,260 per sq. m. and the ROI is also 6%.
• Apartments with 2 rooms cost around $ 3,000 per sq. m. and the ROI is 5.7%.

Downtown Dubai

This is a tourist attraction with many popular leisure destinations including the Burj Khalifa and Dubai Mall. In fact, it is the center of the entire city life, combining a wide offer of luxury real estate with a rich selection of the most affordable property. It has several clusters of villas.

Studios and apartments with 1 or 2 bedrooms are also in great demand.

In order to save your time, in the future, we will provide only approximations by category.

• Average for studios - $ 4,900 per sq. m. ROI is 5.6%.
• Average for apartments (1 bedroom) - $ 4 355 per sq. m. ROI is 5.0%.
• Average for apartments (2 bedrooms) - $ 4,630 per sq. m. ROI is 4.7%.

Jumeirah Village Circle

This is a family-run neighborhood that was developed by Nakheel Properties. It is located next to Dubai Marina and Dubai Lake Towers, has a well-developed transport infrastructure, is built up with all the necessary socially significant facilities and shops, and has entertainment facilities designed for the whole family.

• Average for studios - $ 2,520 per sq. m. ROI is 6.3%.
• Average for apartments (1 bedroom) - $ 2,240 per sq. m. ROI is 6.2%.
• Average for apartments (2 bedrooms) - $ 2,100 per sq. m. ROI is 6.1%.

Business Bay

This is a central commercial area that provides an adequate range of affordable property. However, due to the large flow of people through Business Bay, there is a high demand for real estate in this area, resulting in prices that are usually higher than the average in Dubai.

The area has a large number of premium residences with an impressive array of amenities and access to critical social and commercial areas. As a commercial area, Business Bay is typically attractive to mid-to-high-end businesses as well as a large number of high-qualified workers.

The main priority is given to studios and apartments with 1 or 2 bedrooms as in previously described areas.

One way or another, the measurement of these types of real estate is very convenient for calculations since they are constantly experiencing the highest demand among apartments. This makes it possible to compare prices across the Emirate.

• Average for studios - $ 3,800 per sq. m. ROI is 6%.
• Average for apartments (1 bedroom) - $ 3,260 per sq. m. ROI is 5.5%.
• Average for apartments (2 bedrooms) - slightly less than $ 3,200 per sq. m. ROI is 5.1%.

Jumeirah Village Towers

This is a multifunctional residential complex located next to 4 artificial lakes. It is focused on both individual residents and entire families. It provides a wide range of comfortable accommodation.

• Average for studios - $ 5,440 per sq. m. ROI is 5%.
• Average for apartments (1 bedroom) - $ 4,080 per sq. m. ROI is 5.3%.
• Average for apartments (2 bedrooms) - $ 3,810 per sq. m. ROI is 4.9%.

Larger layouts with 3 or more bedrooms are also in high demand in the area.

Areas of interest within villas

According to interest in villas, the following districts are noteworthy:

Arabian Ranches

This is a project by Emaar Properties. It is divided into 3 clusters - Arabian Ranches 1, 2, 3.

The area was founded primarily as a proposal for large families with high incomes. Ranches provide premium villas that Emaar specializes in.

There is a large golf club near the clusters.

The main offer is made up of villas with 2 and 3 bedrooms. Larger objects with 4 bedrooms are slightly less common.

• Average for villas with 2 bedrooms - $ 2,190 per sq.m. ROI is 6.4%.
• Average for villas with 3 bedrooms - $ 2,295 per sq.m. ROI is 5.7%.
• Average for villas with 4 bedrooms - $ 2,500 per sq.m. ROI is 5.4%.

In addition, the rare offer of villas with 5 bedrooms should be noted. The average price for this offer is $ 2,530 per sq. m. ROI is 5.1%.

It should be noted right away that the average price per square meter for villas is lower than for apartments but 2 points should be taken into account:

• In terms of area, the villas are initially larger than apartments;
• Villas are a slightly more elite sector in the real estate market and until mid-2021, prices in this sector were mainly declining due to lack of sufficient demand. However, at present, the situation has begun to change towards growth.

Dubailand

This is a vast territory with an area of over 278,700 sq. m. provides an extremely wide range of places for recreation, entertainment, and a variety of amenities and facilities of social importance. Villas are located within several areas:

• Dubailand Oasis
• Layan
• Falconcity of Wonders
• Majan
• DAMAC Hills

Average prices will also be calculated ranging from villas with 2 bedrooms to villas with 5 bedrooms.

• Average for villas with 2 bedrooms - $ 1,540 per sq. m. ROI is 6.9%.
• Average for villas with 3 bedrooms - $ 1,790 per sq. m. ROI is 5.3%.
• Average for villas with 4 bedrooms - $ 1,840 per sq. m. ROI is 5%.
• Average for villas with 5 bedrooms – about $ 1,700 per sq. m. ROI is 4.3%.

Dubai Hills Estate

This is an area with a competent price-quality ratio designed for families with high incomes. The Dubai Hills Golf Club and the shopping center of the same name are located here. The area of the latter covers 11 sq. km.

Average prices for one square meter in each of the 4 considered categories - villas with 3-5 bedrooms are in the range of $ 2,700.

• ROI for villas with 3 bedrooms is 4.9%.
• ROI for villas with 4 bedrooms is 4.7%.
• ROI for villas with 5 bedrooms is 4.2%.

Palm Jumeirah

This is an exceptionally expensive resort area and a great choice for high net worth investors looking for 3-, 4- 5 five-bedroom villas. However, there is everything within this area like apartments, villas, townhouses, hotels. Accommodation prices are high here as the entertainment and recreational facilities are all premium.

The price per square meter may seem relatively small but the size of the properties is quite large in comparison with the main part of other areas of Dubai.

• Average for villas with 3 bedrooms - more than $ 3,200 per sq. m. ROI is 3.8%.
• Average for villas with 4 bedrooms - 4 620 dollars per sq. m. ROI is 3.5%.
• Average for villas with 5 bd. rooms - $ 6,260 per sq. m. ROI is 3.4%.

The Villa

This family area can offer residents more than 1,200 villas with different architectural designs and configurations in a fairly affordable price range especially when compared to areas like Palm Jumeirah.

• Average for villas with 3 bedrooms - $ 1,800 per sq. m.
• Average for villas with 4 bedrooms - $ 1,830 per sq. m.
• Average for villas with 5 bedrooms - $ 1,820 per sq. m.

ROI across all categories is in the 4.7-4.9% range.

Rental price

For the data below, we will refer to the RERA Rental Index that shows that rental prices are currently slightly higher than in the previous year.

Landlords are trying to lock in high rates before the 3-year rental rate freeze goes into effect - a bill that was announced in April 2021 by the Dubai Land Department (DLD).

Below we will consider the most popular areas of the Emirate taking into account the rental price of the real estate.

Arabian Ranches

We have already described this area earlier.

The villas with a total area of 175 sq. m, as a rule, are offered at a rate of $ 223 per sq. m. Thus, the total annual cost of such a villa will be slightly more than $ 39,000.

Jumeirah Beach Residence (JBR)

This is a more expensive area than Arabian Ranches. The area offers mostly apartments and the most popular are the 1-bedroom apartments.

The rental rate per square meter of a studio is $ 330. Apartments with 1 bedroom for rent is $ 280 per sq. m.

JBR itself is a complex of high-rise apartments and includes 40 buildings 17 to 49 floors. The coverage area is 2 sq. km. and this complex can accommodate up to 15,000 residents at a time.

Dubai Marina

This is another area that we have mentioned above and quite an expensive one. In addition, it offers only large-scale property based on the available space. It is definitely not for those looking for an affordable small property.

A popular category of real estate for rent is a 3-bedroom apartment and, surprisingly, at a very affordable price of $ 265 per sq. m.

Palm Jumeirah

Despite the information in the previous section where Palm Jumeirah showed an incredibly high purchase price per sq. m. for villas, the rental price is a very acceptable level taking into account the well-known elite of the area. The average rental rate in the area is only $ 267 per sq. m.

Motor City

Motor City is new to our list and the leader among expats. It demonstrates excellent value for money and stable rental rates. By low prices, we mean comparing them to an impressive number of districts in Dubai. Namely, it is $ 240 per sq. m.

The area itself is a combination of residential properties, business complexes, shops, shopping centers, theme parks, and areas for practicing various types of motorsports.

Price per square meter

Now we can move on to the final rating by the price per square meter. First, let us look at the average prices over the past year.

Prices for the purchase of a square meter allow us to make the following ratings (in terms of cost reduction):

• Jumeirah Village Towers
• Downtown Dubai
• Business Bay
• Dubai Marina
• Jumeirah Village Circle

We have the following for the villas:

• Palm Jumeirah
• Dubai Hills Estate
• Arabian Ranches
• Villa
• Dubailand

It should be noted that by the middle of 2021, the price per square meter had increased. The ranking includes the following districts: DIFC, Views, Old City, Springs, Lakes, Jumeirah Islands, and Meadows.

However, prices in these areas could not get ahead of the leaders in the city who were most confidently entrenched in the list of the most popular among the population. Dubai Marina, Downtown Dubai, and Palm Jumeirah are still the most expensive areas in the Emirate.

We will help you choose a property in Dubai

If you are interested in a more detailed analysis, forecasts, and the most up-to-date information on this or other data about the sector, our real estate specialists are ready to advise you and present detailed information about the market.

The main thing is to help give you the tools to correctly invest and purchase real estate, whether for personal or for a pleasant passive income.