Dubai has been a popular destination for real estate investment for quite some time now. With its luxurious lifestyle, modern infrastructure, and tax-free policies, Dubai has attracted many investors from all over the world.
However, the question that arises here is whether Dubai real estate is cheap or not? Let’s dive deeper into this topic to get a better understanding.
Factors affecting Dubai real estate prices
Before we discuss whether Dubai real estate is cheap or not, it’s essential to understand the factors that affect its prices. Some of these factors are:
- Location: The location of the property plays a crucial role in determining its price. Properties in prime locations like Downtown Dubai and Palm Jumeirah are more expensive than properties in less prime locations.
- Type of property: The type of property also affects its price.
For instance, villas and townhouses are generally more expensive than apartments.
- Developer: The reputation of the developer also plays an important role in determining the price of a property. Properties developed by well-established developers tend to be more expensive than those developed by less-known developers.
- Market demand and supply: Like any other market, demand and supply play a critical role in determining real estate prices.
Dubai Real Estate Prices
Now that we understand the factors affecting Dubai real estate prices let’s discuss whether it’s cheap or not.
According to recent reports, Dubai’s real estate market has seen a decline in prices over the past few years due to an oversupply of properties. As per Bayut’s Q1 2021 report, “property prices have declined by 6% on average over the last year.” This decline has made some properties more affordable for investors or buyers looking to invest in Dubai’s real estate market.
However, while prices may have declined, it’s important to note that Dubai is still a relatively expensive market compared to other cities globally. For instance, the average price per square foot for an apartment in Dubai is around AED 1,100 (USD 300) compared to AED 760 (USD 207) in London and AED 836 (USD 227) in New York.
Conclusion
In conclusion, whether Dubai real estate is cheap or not depends on various factors. While prices may have declined over the past few years due to oversupply, it’s still a relatively expensive market compared to other cities globally. However, with the current decline in prices and various incentives offered by the government such as extended visas and reduced business fees, it might be an excellent time for investors or buyers to invest in Dubai’s real estate market.