Real estate prices perspective in Dubai in 2023

Property in Dubai

Beginning in 2023, there began a decline in Dubai’s home rental and sales prices. The cost is reduced due to a mismatch between demand and supply. That’s why now probably is the best time to invest in villas in Dubai for expats.

Prices for real estate in Dubai in 2023

Due to the influx of foreigners, employment among the population has become less, which has affected the demand for real estate. Foreigners’ income from renting out housing has decreased, they are afraid for the invested funds and are in no hurry to invest in a new property.

• Studios

A studio can be bought for less than USD 200,000. But this is a budget option. If you buy an apartment in an elite area, you need to pay extra.

• Apartments

Prices for apartments depend on the area and size. There are offers for every taste: from one hundred thousand to tens of millions of dollars.

For a one-bedroom apartment with an area up to 70 square meters, you would have to pay around USD 300,000. A two-bedroom piece of 110-130 square meters would cost you around USD 500,000. And if it’s a bigger apartment of three or more bedrooms than the price can be as high as USD 800,000.

• Luxury real estate and villas

The average villa has three bedrooms, an area of 100 square meters, a pool, a garage, etc. The costs start at around USD 270,000 and can go over USD 20,000,000.

• Townhouses

Townhouse prices are affordable: USD 145,000-USD 2,500,000. Some are sold in installments or mortgages. In the most expensive ones windows overlook the sea or ocean.

• Commercial real estate

The cost of commercial real estate starts from USD 200,000 and goes over tens of millions.

Restaurants and cafes rarely sell out. Their income is impressive. But some restaurants with an area of ​​more than 500 square meters with a terrace, a convenient location and a sea view can be bought for USD 400,000.

Shops sell complexes, shopping centers. The cost is usually around USD 500,000 – 3,000,000.

Offices with an area of 50 square meters or more are sold for USD 200,000 – 19,000,000. A warehouse for food and other goods can be purchased for USD 6,000,000 (size – up to 2,000 sq.m.)

• The cost of land

Land plots in Dubai, as in all the UAE, are more expensive than ordinary real estate.

Investing in land is more profitable than in housing. In a year, the price can rise by AED 100,000 or more. Usually for such a purchase you do not need to pay immediately, installments are possible.

On average, a land plot costs USD 1,362,667 (for an area from 1,000,000 to 2,000,000 square meters)

Income

The price of residential real estate has fallen slightly in recent years, so now is the best time to buy it. The situation will quickly stabilize, so the income will cover all costs.

Good income can be obtained from the rental of housing. Every year you can have an increase in funds of 5-7% of the value of the property.

From the rental of villas, the profit is about 3-6%, from the rental of apartments – 6-10% per year. Small apartments and studios have a higher percentage of income than multi-room apartments.

According to recent statistics, the highest income (9%) is generated by housing in:

• Dubai’s Sports City,
• Silicon Oasis,
• Discovery Gardens areas.

A percentage of 7.5-8 is observed in the areas of:

• The Greens,
• Jumeirah Lakes Towers.

In prestigious parts of the city Palm Jumeirah and Dubai Marina, the income is 6% per year.

Villas provide less income than apartments. But there are exceptions to this rule. In the Arabian Ranches and The Springs districts of Dubai, houses generate income of more than 6%. Large real estate pays off faster than some apartments. But the bigger and more expensive the villa, the fewer people can afford to rent it. As a result, incomes are scarce.

Real estate agency in Dubai

AX CAPITAL agency is ready to assist you on every step of the deal, providing the services of the highest quality. Have a look at their website and begin your journey towards a home in the Emirates today.