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Last year, two cities in the United Arab Emirates were added to the list of the world's most comfortable places for residents. Dubai and Abu Dhabi came in second and ninth place on the list, respectively. The UAE boasts a thriving economy, which includes a flourishing constructing sector. It is no surprise that many investors are interested in new development projects in Dubai and other emirates. What is the average cost per square meter of dwelling in the UAE? Is it reasonable to buy real estate in the country for €100,000? We’ll explain in the article.
Content:
- What is the current state of real estate prices in the UAE?
- What can you buy in the UAE for up to €100,000?
- How can one buy a home in the UAE?
- What will happen to the UAE real estate market in 2023?
What is the current state of real estate prices in the UAE?
When it comes to the UAE, most foreigners today choose to purchase property in Dubai rather than in Abu Dhabi or Sharjah. Although Abu Dhabi is the UAE's capital, Dubai is the most populated city; it is more tolerant of visitors' habits and traditions, which is why it draws both tourists and expats. All real estate in Dubai is classified into three types:
- economy;
- comfort;
- luxury real estate.
If you have a budget of up to €100,000, we will discuss acquiring an economy class home. You can instantly abandon the idea of purchasing houses, townhouses, or even villas in Dubai; instead, consider apartments in this category.
The average cost per square meter in Dubai in the first half of 2023 is about $3,000. As a result, an affordable 35 sq. m flat can be purchased for around $105,000 (€94,350).
It is worth noting that real estate in the UAE can earn up to 10% every year. After ten years, the apartment will be completely paid off. In Turkey, for example, purchased house pays off after 22–27 years on average.
What can you buy in the UAE for up to €100,000?
Today, €100,000 is a rough equivalent to AED 409,000. There are numerous offers that fall within this price range. There are apartments in less popular districts with large areas and alternatives in more prestigious places with smaller areas.
For example, at the Dubai Airport Freezone, you can currently purchase a 58.41 sq. m apartment in Dubai with two bedrooms for AED 290,000. Housing is situated in a multi-story building with a swimming pool, gym, and recreation zone on the site.
A more premium choice in another neighborhood, Dubai South (Dubai World Central), is priced at AED 400,000. The space is already limited – 41 sq. m for a studio flat. The building where it is located is right near to the mosque. There is a spa center, sauna, Turkish bath, fitness room, parking, shops, and eating establishments on the territory. The property is 16 km from the beach.
For AED 275,000, you may find an even more affordable studio in Dubai Sports City. It is a fully furnished 35.8 sq. m apartment with a balcony and air conditioning. The residence contains a gym and a swimming pool.
Another option is to acquire a studio of 38.32 sq. m in the somewhat remote residential district of AL Furjan, which is located 9 km from the sea and 9.5 km from the central district of Dubai.
There are plenty of options on the market, and you may purchase property in Dubai both directly from the developer and through the secondary market. When picking an apartment, as in any country, you need to thoroughly examine the seller's reputation; if you are acquiring primary residence, carefully gather information about the developer. It is advisable to purchase real estate in the UAE in ready-made houses or off-plan projects in Dubai from an experienced developer.
How can one buy a home in the UAE?
A citizen of any country can buy a residence in the UAE. If you purchase an apartment directly from the developer, the entire process is relatively simple, and the only documents you need are a passport, a valid visa if you are present in person at the transaction, or a power of attorney if your authorized person will sign the documents on your behalf.
If you acquire an apartment on resale, you will need a preliminary contract, which describes the terms of the agreement, a memorandum of understanding, during which the buyer pays an advance, and a certificate of no objection, which verifies that the seller has no real estate obligations.
What will happen to the UAE real estate market in 2023?
Experts anticipate more expansion in the United Arab Emirates' real estate sector, which includes both Abu Dhabi and Dubai. Factors attracting investors to the country include:
- high level of security in the UAE;
- stability of the economy and political situation in the country;
- ease of starting and running your own business;
- inward migration policies – for example, while purchasing expensive real estate, you can acquire a so-called "Golden visa."
In 2022, average house prices in Dubai grew by 33.4%, so if you are considering purchasing an apartment or a house in this emirate, you should act as soon as possible before prices rise again in a high-demand environment.
If you do not want to live in an apartment, keep in mind that the UAE attracts lots of international visitors and business travelers; therefore the purchased property can be rented out – the rental market in Dubai is highly developed. Foreigners have the right to rent housing in the country, either independently or through a company that deals with real estate. In Dubai, there are no income taxes.
If you have thoughts about moving to the UAE or starting your own rental business in Dubai or other emirates, please contact our experts for thorough information on current market offers: both in new residential complexes and in secondary properties. You may learn about a specific region of the country, examine all of the benefits and drawbacks of a potential purchase, and, if desired, receive complete transaction support as well as qualified after-sales service.
