How much is a 1-bedroom apartment in the UAE

How much is a 1-bedroom apartment in the UAE

The UAE real estate market is growing as fast as the country itself. It is hard to imagine that just half a century ago, poor fishing villages were scattered across the land where we can see state-of-the-art dynamic cities with modern skyscrapers today. Following the integration of individual emirates in 1971-1972 along with oil discovery, the country started getting richer, and due to wise investment in industry and agriculture, it managed to reach economic prosperity in a relatively short period.

The UAE is a dream country for many people today. It has a warm sea, never-ending summer and high standards of living – no wonder people wish to stay there for longer holidays or even take up permanent residence. In addition, the Emirates is a great country for doing business. The government allows foreigners to open businesses in the country under highly favorable conditions: 100% ownership, affordable fees, no income tax, etc. People also come to the UAE to work and study.

Moreover, it is a popular real estate investment destination, for example, to buy property for lease as there is no property or rental tax in the country. Properties in the UAE have high rental yields – 7% per year on average. As the country population has been constantly increasing, the demand for leased properties keeps growing as well.

There is a wide choice of real estate in the UAE. Construction is permanently underway in all the cities: new residential neighbourhoods, townhouse and villa communities, as well as new districts emerge. There are many options – from affordable to premium, with a whole range of convenient venues. Apartments have a unique infrastructure, while villas are hard to imagine without a private swimming pool or a garden.

Foreigners can buy property in the UAE, but only in freehold areas. The freehold areas are designated zones free of financial restrictions typically found in the rest of the world. The freehold areas can be found in every emirate and, as a rule, they are some of the most demanded neighbourhoods with a great variety of property types to choose from.

The UAE is made up of seven emirates: Dubai, Abu Dhabi, Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain. Each of them is unique with its own way of life and its own rules. Some emirates like Dubai are more liberal, while some like Sharjah are stricter. Those who wish to buy property in the Emirates should take all these factors into account when making a choice.

How much is a 1-bedroom apartment in the UAE

One-bedroom apartment is probably the most popular property type of all times. How much does a one-bedroom apartment in the UAE cost? Firstly, the price depends on this or that emirate. Secondly, it depends on a district. Lastly, on an apartment floor space, its unique story, age and quality of a house, as well as amenities available. In addition to this, every buyer has personal demands and preferences.

Surely, Dubai is the UAE’s leader in residential property sales and is the most liberal and popular emirate of all. The people often call this huge multinational metropolis the Middle Eastern New York, with people coming from all over the world in search of work and a better life. There are many job opportunities there and, consequently, high demand and supply of the real estate. One-bedroom apartment prices in Dubai largely depend on a district. Russian-speaking customers tend to choose the three areas: Dubai Marina, Downtown Dubai and Palm Jumeirah. Prices for ready-to-move-in apartments there start from 950,000 AED ($260,000) – these are the most affordable options, which include both fully furnished apartments and empty ones. On average, one-bedroom apartments in these areas cost 2 million AED ($570,000); however, prices for luxurious residences start from 3.6 million AED ($1 million).

Residential real estate of moderate prices is also available in Dubai. Options can be found in remote areas, such as International City and Dubai Industrial Park. Prices for one-bedroom apartments there start from 257,000 AED ($70,000), with the average cost being around 312,000-319,500 AED ($85,000-$87,000), while the most expensive apartments cost up to 2.57-2.93 million AED ($700,000-$800,000). Despite the high yield of long-term lease – up to 9% – the property in those areas is considered illiquid in terms of resale. The local apartments are mostly leased to migrants working in Dubai in low-paid jobs, and it is quite difficult to sell local housing because of the bad reputation of those neighborhoods. For example, in International City, the quality of housing is quite low, although the area is already considered old (its construction started in 2002).

None of the remaining UAE cities can be compared to Dubai in terms of residential real estate offerings. Other emirates deserve paying attention to as well, as personal goals and preferences are different, while the quality of life there is good enough.

Another popular city is the UAE capital – Abu Dhabi. This is the largest and richest emirate in the country. A lifestyle there is quieter than the one in Dubai, so it is suitable for those who do not like excessive noise and fuss. The city is famous for its beautiful long beaches, numerous parks, squares, and gardens.

Just like Dubai, foreigners there can get a job, start their own business (either independently in one of the freehold zones, or together with a local partner) and, of course, buy property. Unlike Dubai, the construction of new buildings in Abu Dhabi is not so active, and the choice of housing is not wide. Furthermore, life in the UAE’s capital is quite expensive, while real estate is not cheap either.

How much is a 1-bedroom apartment in the UAE

Prices for one-bedroom apartments in Abu Dhabi start from 404,000 AED ($110,000). A lot depends on a chosen location. For example, in the Al Raha area, popular among expats and immigrants, the cost of one-bedroom apartments ranges from 947,000 to 2.53 million AED ($258,000-$690,000), on Yas Island – from 514,000 to 2.01 million AED ($140,000-$550,000). Al Reem Island is considered one of the best locations where everything necessary for life is located within a walking distance. The average price of a one-bedroom apartment there is 1.46 million AED ($400,000). The areas where foreigners prefer to settle are Khalifa City A, B, Mohammed Bin Zayed City, and the center of Abu Dhabi, but apartments are not always available for sale there.

The next emirate that we focus on is Sharjah. Compared to other locations, Sharjah is more conservative, yet it is considered the cultural capital of the UAE: the city has been designed for lovers of creativity and art. Life here is much quieter and slower-paced compared to Abu Dhabi, and it is cheaper.

As for buying real estate, namely one-bedroom apartments that we particularly discuss in this article, the choice in Sharjah is the most modest compared to other UAE cities. The average cost of a one-bedroom apartment in Sharjah is 550,000 AED ($150,000), which is significantly lower than in popular areas of Abu Dhabi.

The emirate of Ras Al Khaimah is located in the north of the country and is an interesting alternative to Dubai. Due to its northern location, the landscapes of Ras Al Khaimah are more diverse: there are mountain peaks, long beaches, and rich vegetation.

Nowadays, Ras Al Khaimah is developing very fast, and the region has a huge economic potential. Many expats already reside there; there is an international airport, new resorts and hotels. The city expects to welcome millions of tourists. Residential building construction is underway there too, but Ras Al Khaimah’s main competitive advantage over Dubai is the affordability of housing that is actually of the same quality.

In terms of the number of one-bedroom apartments on offer, Ras Al Khaimah ranks third after Abu Dhabi. The cheapest one-bedroom apartment costs 220,000 AED ($60,000), the most expensive – 1.3 million AED ($355,000), the average price is about 735,000 AED ($200,000). Ras Al Khaimah is a free economic zone, so foreigners can buy local real estate in a 100% ownership. In the future, along with developed infrastructure around new residential areas, the real estate in Ras Al Khaimah will become more expensive, so perhaps now is the best time to buy it.

You can also consider an option of buying a home in Ajman – the smallest emirate of the UAE. The city of Ajman is quite compact, but it is conveniently located compared to Dubai and Sharjah. Since 1996, it has been a free economic zone, so the conditions that foreigners need to start business, find a job or buy real estate are nearly the same as in other emirates. The Ajman government is interested in attracting investors, so it provides them with all possible assistance.

Housing in Ajman is relatively inexpensive, prices for one-bedroom apartments range from 99,000 to 132,000 AED ($27,000-$36,000), but there are luxury options costing 1.83 million AED ($500,000) and above. Due to such a large price range, the average cost of a one-bedroom apartment is 1.1 million AED ($300,000).

We have discussed the main and most popular destinations for buying one-bedroom apartments in the UAE, each of which has its own features and advantages. The buyer’s choice depends on his personal goals and preferences. It is worth noting that apartments built by state developers, such as Dubai Properties (DP), Meraas Development, and Emaar Properties PJSC, are more reliable. These companies have long established themselves in the real estate market and not only build buildings, but also create a full-fledged infrastructure around. DAMAC Properties is known for the highest quality of its properties. When looking for an apartment, future owners are advised to pay attention to the locations where one developer operates, and not just builds houses and residential complexes, but also invests in the entire area development.

The market for one-bedroom apartments varies depending on the chosen emirate. Dubai has the highest number of offers with the widest price range – from 257,000 to 14.6 million AED ($70,000 – $4 million). In Abu Dhabi, buying one-bedroom apartment is quite expensive: depending on the area, an apartment can cost from 404,000 to 5.4 million AED ($110,000 – $1.47 million). Sharjah, Ras Al Khaimah, and Ajman are more accessible in terms of buying real estate, but there are fewer offers there. In these cities, one-bedroom apartments cost on average 367,000 – 1.1 million AED ($100,000-$300,000).

In general, the UAE remains an attractive region for real estate investment. New apartments, houses and huge residential projects are realised all around the country with Dubai leading the way. However, other emirates are making progress as well and offer great opportunities for life, work and business.

How much is a 1-bedroom apartment in the UAE

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