When you plan to invest in housing in the United Arab Emirates to earn money, the most important issues to consider are apartment prices and the condition of the local real estate market. Before you buy a property in order to resell or rent it out, you need to study the average cost per square meter as well as what volume of housing in different cities and neighborhoods in the UAE is currently being sold (property investors are mostly interested in the cities of Dubai and Abu Dhabi). This information will allow you to purchase housing as profitably as possible and thus ensure you a good income in the future.
Has the spread of the coronavirus affected the activity of buyers in the real estate market in Dubai? What are the housing prices in the United Arab Emirates now? What will happen to prices in the near future? What factors affect the cost of an apartment? Has the construction of housing decreased? What housing options does the real estate market offer today? When is it more profitable to take a villa or an apartment: now or later? Is it worth waiting? You can find the answers to all these questions on this page.
Table of contents:
- What are the property prices in the UAE
- Apartments in the United Arab Emirates: prices in 2021
- Changes in property prices in the United Arab Emirates
- We will help you choose the best property in Dubai!
Real estate prices in the United Arab Emirates depend on:
- The number of offers on the market.
- Demand for housing or commercial premises as well as land plots for sale.
- Property features (area, what city and neighborhood it is located in, how far the property is from the sea, city center, social infrastructure, and so on).
- What floor the apartment or office is located on.
- The view from the windows.
- Many other factors.
According to experts, the reduction in the construction of houses in 2021 will affect property prices and they will rise.
Since the beginning of 2020, cottages in Dubai have become cheaper by 3.2%. Apartments in buildings in Dubai fell in price less than villas (by 1.1%) but still, sales were higher than villas throughout the year.
At the end of 2019, rent rates in Dubai decreased by 2.4% because since then, supply in this sector has slightly outstripped demand.
Prices for apartments and houses in the Emirates are as follows:
- A 1-bedroom apartment in Dubai is sold for AED 740,000.
The project Dubai Healthcare City offers 2-bedroom apartments. The apartment windows offer an amazing view of the city and costs AED 1,595,000.
There is a swimming pool in the residential complex as well as a park and gym. The project is located close to many cafes and shops, as well as shopping centers that have become landmark attractions in the city.
- In Dubai Science Park, located in Al Barsha South, a 2-bedroom apartment can be bought for AED 1,188,000. The apartment building has a barbecue area, an indoor playground for children, an outdoor children's play area, as well as a shop and cafe. There are also shopping centers, kindergartens, schools and clinics near the residential complex.
- A 2-bedroom apartment with luxury finishing in Dubai can be purchased for AED 975,000. The bedrooms feature top-class built-in wardrobes and the kitchen is also equipped with built-in furniture that allows you to save living space. The residential complex features swimming pools of different types (indoor and outdoor ones), a sports gym and a cafe. There is a golf center next to the residential complex.
- A 3-bedroom apartment in the Sky View Tower in Dubai is sold for AED 4,500,000. There is also parking in the residential complex. The peace and quiet of the residential complex are guarded by a concierge. Residents of this residential complex are offered a swimming pool that is available 24/7.
- A 4-bedroom villa in Royal Golf Villas in Dubai costs AED 6,933,000. The residential complex has a gym with treadmills and a swimming pool. The kitchen in the house is fully equipped so you don't have to buy anything.
- A luxury villa for sale in Dubai Hills Estate, Dubai costs AED 3,048,000. Near the residential complex, there is a golf club, a large number of gyms, children's playgrounds as well as several schools.
The current growth rate of apartment and villa prices is quite low. However, in order to profitably purchase real estate, experienced investors recommend that you do not postpone buying a property but invest your money in the property in the near future.
The average cost of a residential square meter in the United Arab Emirates today is $5,920. In Dubai, apartments with an area of 120 square meters are sold at $ 711,000. The rent of these apartments is about $3,000 a month. The owner of an apartment like this will have an annual rental income of 5%.
According to a forecast of the IMF (International Monetary Fund), this year, the United Arab Emirates economy will decrease by 3.5%. The reason for this will be the declining oil prices as a result of the COVID-19 pandemic.
However, the country's authorities have been coping with the crisis since 2008 and thus, have learned how to mitigate the consequences of an economic decline.
The weakening of the economy in the country lasted from 2008 to 2011, and at that time, commercial and residential real estate prices fell by about 53%.
After the global economic crisis, by July 2011, the activity of investors in the real estate sector in the UAE went up so the cost of apartments in large residential complexes, as well as villas, increased by 67%.
Due to the spread of COVID-19, purchasing activity in this sector has experienced a decrease last year. In 2019, 56,000 residential buildings were commissioned in Dubai and today, 575,000 properties are sold on the new home market in this city.
In Abu Dhabi, construction companies commissioned 8,000 projects in 2020 and there are now 265,000 new villas and apartments for sale in the city.
Due to the large gap between supply and demand (more offers) last year as well as at the beginning of 2021, housing prices in the United Arab Emirates are not expected to rise sharply. However, real estate experts say that this year, because the largest city in the country, Dubai, is scheduled to host the world exhibition Dubai Expo, this is likely to revive the real estate market in the city.
Moreover, in the next few years, the United Arab Emirates will not build as many housing units as in previous years so the number of offers from developers will decrease. This will affect the cost of apartments and they will become more expensive.
In order to temporarily reduce interest in real estate for sale in Dubai, the City Land Department has doubled the registration fees for apartment and villa transactions. Currently, for property registration, buyers have to pay 4% - double the past rate of 2%.
Emirates.Estate offers luxury residential and commercial properties for sale in Abu Dhabi and Dubai.
Find and buy your dream villa or apartment in the United Arab Emirates today. We have collected the very latest property deals from the top developers and real estate agencies in the UAE to ensure our customers the best experience. With Emirates.Estate, buying real estate in the UAE is easy and safe!