Are houses in Dubai expensive?

The simple answer would be relatively not the case as properties in Dubai are very affordable for the high end lifestyle that they provide in return with futuristic options, sustainability and more if we were to compare them to other major cities in the world. Dubai is youthful, modern and well organized and has developed at incredible speed in such a short amount of time. This credibility in itself is a fascinating puzzle and Dubai is still confident about its future. This begs the question of why the property prices in Dubai are so affordable compared to other big cities around the world? Let’s take a closer look at the reasons behind this phenomenal scenario.

To compare Dubai property value per square meter to other big cities, we can notice a significant difference in how much buyers are getting in return in terms of size, efficiency, sustainability, amenities and luxury living as well as being a safe central business hub in tbe midst between Europe and Asia, ideal with its tax free incentives which means you can get more than your money’so worth elsewhere and with higher returns on investment than other cities with an average of 8% return on investment at least and reaching up to 23% on short term rentals. Investors do not think twice as the conditions are ideal and 2024 is seeing a rise in investments for this reason as it doesn’t seem that this will slow down anytime in the future. We can compare it to a couple of cities in the world to put into perspective.

City

Average Property Price (per sq.m.)

Dubai

$3,500 – $5,000

London

$15,000 – $25,000

New York City

$10,000 – $20,000

Singapore

$8,000 – $12,000

Hong Kong

$20,000 – $30,000

Sydney

$8,000 – $12,000

1. Supply:

Dubai’s ambition knows no boundaries and we at Prestige Edition Real Estate are witnessing it, as set by Sheikh Mohammed’s visionary 2040 plan. The population set to skyrocket from 2 million to 7.8 million in 2040, the developers are racing to supply as demands for homes is on the rise and we are still facing shortages to cater to future residents creating a healthy supply and demand that keeps the market on its toes. This surge in demand ensures a steady stream of income for investors and avid buyers, making it an ideal time to invest in Dubai’s burgeoning real estate market to have a fruitful outcome. The early birds have seen it benefitting the most so investors are still keen on entering the property market scene to benefit especially on the future projects that keep adapting to innovative concepts that have a sense of exclusivity getting more and more lucrative for the discerning individuals.

2. Holiday Homes:

Dubai is experiencing a trend of holiday homes or short term lettings, a golden opportunity for investors seeking substantial returns in half the time they had seen in the last decade. By purchasing properties designed for short-term rentals, investors can unlock impressive ROIs ranging from 16% to 22% on a decent average. With the added advantage of quick rental turnover as  tourists through out the year ensure a steady flow of income.

3. Dubai’s Changing Economy:

Dubai has diversified its economy, focusing on sectors like tourism, finance, and trade. This strategic shift has attracted a multitude of businesses to the city also increasing the amount of long term residents, driving demand for long term and short term residential requirements as well as commercial properties. Investing in Dubai means tapping into a wealthy dynamic market fueled by innovation and constantly in growth.

4. Trust in Dubai:

Investors are attracted to Dubai’s real estate market because of its reputation as a safe and attractive investment destination and a multicultural environment that makes everyone feel right at home. With stringent regulations in place to ensure market stability and transparency, Dubai offers a secure environment for everyone to grow their wealth and consider it a long term home. Rest assured, each investment in Dubai real estate is backed by the unwavering commitment of its leaders to maintain a thriving property sector and give its residents freedom of running business and peace of mind to live in its dynamic city that is looking at becoming one of the best cities in the world with all the facilities and conditions required to live here and that is constantly being achieved year on year. Expo Dubai has also proved this as Dubai housed the latest World expo with great success.

5. Government Regulations:

Dubai’s government is committed to fostering a healthy real estate market through prudent regulations and incentives. From ensuring developers fulfill their promises or get heavily fined to offering attractive perks like golden visas for property investors, the government plays a pivotal role in safeguarding investor interests and creating transparency in all property transactions. With measures in place to prevent price fluctuations, Dubai offers a stable and lucrative investment environment and fair grounds for all parties in a property transaction with a professional, time efficient and supportive system that creates great satisfaction levels for clients across the board.

6. Global Economic Factors:

Dubai’s property market remains resilient in the face of global economic fluctuations as it creates a buffer during times of uncertainty homing expats from all across the globe. Dubai’s allure as a safe haven for investment intensifies, attracting discerning investors seeking stability and growth opportunities. Additionally, favorable currency exchange rates further enhance the attractive and affordability of Dubai’s properties for long term international investors.

7. Amazing Lifestyle:

Beyond its investment potential, Dubai offers an unparalleled lifestyle that appeals and residents enjoy a Ministry of Happiness that makes sure residents are satisfied. From pristine beaches and iconic landmarks to world-class amenities and tax-free income, Dubai epitomizes luxury living at its finest. Whether you’re a seasoned investor or a first-time buyer, Dubai has something for everyone.

In conclusion, Dubai’s real estate market presents a mosaic of newer opportunities waiting to be explored. With its strategic vision, robust economy, and investor-friendly environment, Dubai stands as a beacon of prosperity in the global real estate landscape. The earlier you get into the market the higher your chance to invest in what could be the opportunity you needed to unlock your path to wealth and success. In order to obtain the most unbiased and transparent approach in the market with real time advice,  speak to one of our Realtors at Prestige Edition who value giving you the best options tailored to your personal requirements.


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