A booming and diverse city, Dubai’s real estate market has outperformed many others in the world. It’s one of the most attractive property markets in both investment and lifestyle terms. This article will look at some key statistics of Emirati’s purchasing habits and reveal some interesting insights into what it means to be a property investor in Dubai today.
Let’s take a look at the average cost of an apartment in Dubai, shall we?
The average price per square metre (psqm) of a finished apartment in Dubai is around Dh50,000/psqm. The average price per square meter is more expensive than that of London and Paris, though less expensive than that of New York City. Interestingly, while the average prices per psqm are similar to those of other major cities, the apartments themselves differ substantially.
The most expensive apartment in Dubai is expected to cost Dh100,000/psqm, nearly 3 times the average price per psqm. The cheapest apartment, on the other hand, is expected to cost Dh25,000/psqm or around 1/6th of the average price per psqm.
Dubai’s apartment market has thus far been driven by international investors coming into the region for two main reasons. Firstly, real estate investment is a relatively safe and predictable industry in Dubai. Dubai also has a very stable political environment and the expatriate community is allowed great freedom of employment, movement and residency. The growth of the real estate market in Dubai today can be largely attributed to these two factors. However, as more and more Emiratis get wealthy, it is likely that they will take up a larger share in the real estate market going forward.
When looking at the overall trend of prices, it seems that Dubai has seen a steady increase in prices since 2005. In that year alone, the average price per psqm rose by more than 10%, from Dh42,000/psqm to Dh48,000/psqm over the next 6 years. This steady increase was then followed in 2013 when the average price per psqm rose by another 10%.
What is the average price of an apartment in Dubai?
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The average price of an apartment in Dubai – The above facts can be difficult to interpret for a number of reasons. When looking at the price per psqm, it is important to realize that the average price per psqm is calculated on a 3 bedroom apartment. With more bedrooms, the average goes up and when looking at one bedroom apartments, it goes down.
When did prices in Dubai first start to go up?
Between 2000 and 2005, the average price per psqm in Dubai grew very rapidly. In that period, prices increased by more than 54% and over 90% for one-bedroom apartments. This fast growth was then followed by a more gradual increase in prices as renters began to take up more of the residential market space. It was not until 2013 that prices experienced a rise again.
Why are prices in Dubai continuing to rise now?
It is clear that the demand for real estate in Dubai is growing strongly. Vacancy rates in the country are lower than 2% and the supply of affordable apartments is only increasing. This means that there is strong demand for apartments and the prices will continue to rise further in 2013.
– There are some cautious voices on property prices – Despite this, there are some very cautious voices on property prices in Dubai.
What does the increase in real estate market mean for Emirati’s purchasing habits?
As Dubai’s real estate market continues to grow, Emirati’s purchasing habits are likely to change. More Emiratis are expected to move from renting into buying and the ownership of real estate has become a status symbol for Emiratis. In addition, restrictions on expatriate workers in Dubai are said to have reduced the number of incoming expatriate workers into the city. It is thus likely that demand for property ownership will increase further and that there will be a rise in average price per psqm going forward.
How much does the cheapest apartment cost on average?
On average, the cheapest apartment costs 53% of the average price per psqm. This roughly corresponds to Dh16,000/psqm. A 1-bedroom apartment in Dubai averages Dh16,000/psqm but the cheapest one is being sold at Dh13,500/psqm.
Where are the cheapest apartments in Dubai?
The least expensive apartments in Dubai are being sold in Bur Dubai and Deira.
Dubai is one of the fastest-growing real estate markets in the world. In 2013, the average price per square meter of a completed apartment was approximately Dh48,000/psqm. Dubai’s affordability is also appealing to many foreigners seeking a new way to invest in property. The city has also seen a steady increase in prices since 2005 with apartments reaching an average price of Dh48,000/psqm by 2013. The growth of this market can largely be attributed to global investors coming into Dubai for two main reasons; stability and innovation. However, as more and more Emiratis become wealthy it will likely see an even larger share from them in such investments going forward as well.
The data on rents suggests that Dubai has seen a steady increase in rental prices since 2005. In that year alone, rental prices rose by more than 10%, from Dh14,000/month to Dh16,500/month over the next 6 years. This steady increase was then followed in 2013 when the average rental price rose by another 10%.
Overall, Dubai’s real estate market is set to continue its impressive growth over the coming years.