Dubai real estate market has already made a mark in the luxury segment and now the trend seems to have shifted towards more affordable projects, properties that fall under the value of a million Dirhams. The affordable segment has seen immense growth in the last one year and offers a plenty of options for the budget conscious buyer and investors who prefer having multiple smaller units in their portfolio instead of larger, high priced ones. Also the expat population paying high rents for housing are turning to become home owners.
Areas like Jumeirah Village Circle, Arjan, Dubai Sports City and Dubailand offer affordable housing options ranging from a studio to 2 bedroom apartments within a million in a mix of ready and off plan options. These projects are mainly targeted at the mid income earners as local demand can be built when this segment of buyers enter and stays in the market. Developers have recognized the opportunity in affordable projects targeted at a mass audience and have been innovating payment plans to widen the pool of potential buyers.
Big developers that specialize in luxury developments are also adding projects that fall under a million in prime established and upcoming areas of Dubai with all amenities and infrastructure. A low priced property combined with a long term payment plan with smaller installments is getting stellar response for some developers and these projects are where their concentration has moved to.
How Dubai’s affordability compare to other cities?
Dubai, known for its glamour and luxurious real estate is one of the most affordable in the world when it comes to property prices. Ranked as 34th globally in 2017, it still offers a lower property price than many other cities and some of these cities are even far behind if compared on infrastructure and amenities. While recently Monaco, New York were listed as the most expensive per square feet property price, Dubai was not even it in the top 10 list.
An average square feet price for apartments in the 3rd quarter of 2017 and previously is much lower than other compared cities and the rental returns are higher than these cities. Dubai offers rental returns of up to 10% with property prices on a dip making it the most affordable among global top cities and the price comes with a promise of appreciation.