Dubai is a major attraction to people from all over the globe; some choose to relocate there and others see it as an investment market. The common thing between people is looking for properties. The real estate market is a thriving one in the UAE.
Are apartment prices Dubai really expensive?
The answer to this question is relatively flexible according to the different references. For instance, apartment prices in Dubai are cheaper if compared to the property prices of other popular expat hubs such as New York, Hong Kong and Singapore.
However, apartments are actually expensive in Dubai if compared with prices in other cities of the UAE such as Abu Dhabi, Al Sharjah and Ajman. The prices vary within Dubai itself according to the location, space and features of the apartment. For example, properties in Palm Jumeirah, Downtown Dubai, Dubai Marina and Jumeirah Lake Towers are the most expensive. On the other hand, neighbourhoods such as Jumeirah Village Circle and the International City are relatively affordable.
Cost of apartments in Dubai:
To live in Dubai, you have two options; either to buy an apartment or to rent one. Buying apartment in Dubai can be costly, however; it provides worthy yields if you are looking for an investment. In the coming lines, we will list the purchase and rental costs of different apartments in Dubai.
- A single-bedroom apartment for sale in Jumeirah Village Circle costs AED 422,400,00.
- A 2-bedroom apartment for sale in Dubai Science Park costs AED 1,990,000,00
- A 2-bedroom apartment for sale in Port De La Mer costs AED 2,043,000,00
Check Also: Residential Apartments For Sale In Dubai
Rental costs of apartments in Dubai:
Rentals vary according to the neighbourhood you choose to live in. Everybody wants a stylish lifestyle with proper amenities nearby. A single-bedroom apartment in luxurious neighbourhoods costs between AED 100,000 and AED 132,000 annually. The same apartment in areas such as Dubai Silicon Oasis costs between AED 25,000 and AED 54,000 annually. Experts predict that rents in Dubai will increase by about 15 to 20% by the end of 2024 because of the high demand and limited new housing supply. Let’s have a look at some numbers.
- A single-bedroom apartment in City Center costs AED 7,959 ($2,167) per month
- A 3-bedroom apartment in the City Center costs AED 15,243 ($4,150) per month
- A single-bedroom apartment in JLT costs AED 5,519 ($1,502) per month.
Additional costs you must consider:
Renting or buying apartment in Dubai will expose you to some additional costs, which usually are paid once. These costs include:
- The real estate agent commission (about 5% of the property price or rental agreement)
- A deposit that is equivalent to 5% of the annual rent, which is usually used for covering damages and repairs.
- Utility charges, which range between AED 700 and AED 1,200 per month.
- A 4% transfer fee in case of property purchase.
Alternatives that are more affordable than apartment prices Dubai:
The UAE’s different cities are also prestigious to live in and can be more affordable. Abu Dhabi, for instance, is an excellent choice to invest or live in. Aldar Properties developer offers many luxurious properties in Abu Dhabi. Foreigners can buy properties in the freehold zones such as Yas Island and Saadiyat Island.
Check also: Properties by Aldar Properties in the UAE.
In Yas Island, you can buy a 2-bedroom apartment starting at AED 1,350,000 and a 3-bedroom apartment starting at AED 1,628,734. The rents in Abu Dhabi for a single-bedroom apartment range from AED 70,000 to AED 90,000 per year in luxurious areas and from AED 40,000 to AED 60,000 per year in affordable areas.
Check also: Residential apartments for sale in Abu Dhabi
FAQs about apartment prices in Dubai:
Q: Are apartment prices in Dubai really expensive?
A: They are relatively expensive. However, some neighbourhoods are very affordable.
Q: Is buying an apartment in Dubai a good idea?
A: As an investment, it is a very good idea because of the high yields.
Q: Can expats buy an apartment in Dubai?
A: Yes. Foreigners and expats can buy properties in Dubai within designated areas called freehold zones.
