The Average House Price in Dubai: A Review of the General Tendencies

Dubai, a city that combines the unique atmosphere of the East with the modern technologies of the West, attracts thousands of people from all over the world. More and more foreigners regard the UAE’s real estate as a prospective opportunity for permanent residence, seasonal vacations, or profitable investment. The key issue that worries potential buyers is the average house price in Dubai. In this material, the specialists of Golden Bee Agency explain what prices prevail in the UAE’s real estate market and why it is promising to invest in Dubai’s property.

Dubai Housing Market’s Tendencies

Numerous real estate objects appear on the market annually. There is a plan to erect 67 000 residential units in 2024. Dubai’s market offers both elite and quite available objects, including compact studios, regular apartments, luxurious penthouses, comfortable townhouses, private villas, and incredible mansions. 

The demand for property is dynamically growing. According to Fäm Properties Agency’s statistics, in 2023, the number of purchase and sale deals in Dubai exceeded 110 thousand. This is a 44% increase compared to the previous year. The average house price in Dubai allows even novice investors with modest savings to purchase a proper object.

Digitalization takes root in the property sphere. The UAE’s real estate specialists are doing their best to be at the forefront of inculcating new technology in the sphere. Cryptocurrency payments and remote housing demonstrations are only a few vivid examples of the prospective growth of Dubai real estate. In addition, it is planned to use robotization in construction processes and utilize artificial intelligence’s abilities to overcome bureaucratic delays.

Dubai’s home prices are continually rising. According to a report by CBRE, in 2023, the average housing cost increased by more than 20%. Therefore, by buying a property, the owner gets the opportunity to resell it and remain in the black.

Average Home Prices in Dubai

According to real estate experts’ opinions and our agency’s experience, the average house price in Dubai is about USD 760,000. The real estate cost depends on the object’s location, the construction stage, the living area, the finish quality, as well as the facilities of the residential complex. The type of real estate is also a significant factor in Dubai home pricing. While mansions are available only to people with high incomes, a small studio is quite inexpensive.

Townhouses’ Average Prices

A townhouse is a residential object that includes several multistory units with shared walls and separate entrances. Many people purchase it as a second home for vacations. Among its main characteristics are low maintenance, relatively high affordability, a sense of community, and common area amenities. The average town house’s price in Dubai is approximately $400,000. This residential area is suitable for families with children. When buying a property, pay attention to its location.

The Average Cost of an Apartment in Dubai

Apartments are an opportunity to always be in the thick of things, living in the city’s central area. Their benefits also include high ROI income and ease of maintenance. There are several categories of apartments. 

• Economy-class flats cost about $2,800 per square meter. This property type offers a quality living area but can hardly boast well-developed infrastructure in its immediate vicinity. The average apartment cost in Dubai is up to the flat’s location.
• Comfort-class apartments are available for $6,100 per square meter. These residential complexes have playgrounds, shops, cafés, etc.
• Elite-class flats cost approximately $10,450 per square meter. A well-equipped complex area with its own social infrastructure objects is a perfect place to live.

The average cost of an apartment in Dubai also depends on the number of rooms. However, in the UAE, there is a feature: the larger the area, the lower the price per square meter.

• A compact but comfortable studio’s price with amenities is usually $100,000–$200,000. It is one of the most affordable Dubai home prices.
• A one-bedroom flat, on average, costs $200,000–$250,000.
• A two-bedroom apartment’s price is $350,000–$400,000.
• An average apartment’s cost with three bedrooms in Dubai reaches $500,000–$600,000.

Penthouses’ Cost

In contrast to regular apartments, a penthouse is located on the top floor of the building and provides its owner with a larger living area. Convenient layouts, high ceilings, panoramic windows, and ownership of the roof’s part are the primary advantages. This real estate allows its proprietor to enjoy a comfortable life in the UAE’s hub. The average property price in Dubai is about $4,000,000.

Villas’ Prices

A villa is a large private house with spacious territory. In most cases, its cost is quite reasonable because the owner also gets a separate pool, cozy garden, and well-groomed lawn. This property type provides a high level of confidentiality and solitude. Among other villas’ advantages are a luxurious finish, unique architecture, and individual facilities. A villa is an optimal variant for those who appreciate privacy and spaciousness. 

The average villa’s price in Dubai comes to $800,000–$1,500,000, depending on location. It is also up to the area and the range of conveniences.

The Average Cost of the Most Luxurious Home in Dubai

A mansion is a large house with a magnificent design and a high level of comfort, security, and luxury. It is a symbol of status, architectural wealth, and expansive landscapes. They are often located in picturesque and prestigious districts. Mansions successfully combine amazing interiors and fairy-tale architecture with the latest facilities and smart home technology. The average house cost in Dubai is not available to everyone and exceeds $10,000,000.

Popular Districts for Buying Real Estate in Dubai

The UAE’s government encourages foreigners to purchase property in the state. Therefore, in Dubai, there are freehold areas. Freehold is a zone where a buyer of real estate gets all the rights to manage it, including renting it out or reselling it. Property objects situated in different parts of the city have diverse prices. The average Dubai house price in the top locations is several times higher.

• Real estate situated within 30 minutes from downtown costs $3000–5000 per m².
• The average property price in Dubai’s central area begins at $11,000 per square meter.
• Waterfront housing costs approximately $15,000 per m².

In Dubai, there are several districts where it is possible to purchase the most comfortable dwellings.

Downtown Dubai

It is the heart of the city, with a dynamic lifestyle and numerous stunning multistory buildings. Dubai’s landscapes, including Dubai Mall, the Burj Khalifa, and the Dubai Fountain, are located in this district. The property prices are quite high. The average home price in Downtown Dubai varies from $200,000–300,000 for a studio to $1,500,000 for a four-bedroom apartment.

Dubai Marina

It is an idyllic developing area surrounded by pleasant greenery. The district is situated away from the city noise but, at the same time, offers well-developed infrastructure. In the area, buyers can find almost any type of real estate, including apartments, penthouses, and waterfront villas. The average property price in Dubai Marina is $5,500 per square meter.

Dubai Hills Estate

It is a luxury district with a unique combination of residential areas, business spaces, and entertaining places. Dubai Hills is a family-bedroom community in an environmentally friendly area. Therefore, the district allows residents to rest from the hustle and bustle of the megalopolis while simultaneously offering dwellings with a high level of comfort and safety. The average house cost in Dubai Hills depends on its size and access to facilities. For instance, it is possible to purchase a one-bedroom flat for $350,000 or a luxurious villa for $2,000,000.

Off-plan Buying

Despite the fact that the average home price in Dubai is affordable to many investors, it would be wrong to neglect ways to save money when buying a property. One of these ways is off-plan purchases. Off-plan real estate is a category of residential units that are still in the planning or construction stages. Its purchase includes several main advantages.

• Off-plan properties have a lower price. The cost increases as construction progresses; therefore, it is most profitable to buy real estate in the earliest building stages. The average off-plan house price in Dubai is lower by 25–35% than the price of ready properties.
• The developers offer a convenient payment scheme for off-plan real estate. In most cases, a buyer can purchase a property in installments. After paying approximately 40% of the full Dubai home price, a buyer can come into a flat’s possession.
• Off-plan buying means an extremely wide range of types of properties. In the early stages of a project’s realization, there is an opportunity to choose the perfect option. It is especially relevant for residential complexes with a limited number of apartments or villas.

Thanks to off-plan buying, it is possible to buy a luxurious object at an average apartment price in Dubai.

Tips for Purchasing a Property in Dubai

1. 1. Examine the real estate market. Be up-to-date on the latest market trends, familiarize yourself with the traits of freehold areas, and find out the average house price in Dubai.
2. 2. Determine the purpose of your purchase. Do you buy property for a permanent residence or investment? Any case makes special demands on real estate. Off-plan objects are suitable for investment but not for immediate relocation. A villa is a perfect option for living, but it is not likely for short-term renting.
3. 3. Take into account extra expenses in addition to the Dubai home price. It is necessary to pay Dubai Land Department fees and registration fees.
4. 4. Choose the proper agency. A property purchase is quite a responsible step; therefore, it would be better to trust the organizational processes to specialists. They will select offers from reliable developers, acquaint you with the average price of a house in Dubai, help you find the perfect object, and provide legal support.

Advantages of Buying Property in Dubai

• Dubai is one of the safest cities in the world. Strict local laws control public order and ensure a low level of crime. According to a public inquiry, 90% of residents feel comfortable, even on night walks.
• The average home price in Dubai is relatively affordable. The wide range of property allows any investor to select a proper option.
• The Dubai government has a loyal tax policy for foreigners. This city is quite comfortable for both leading businesses and renting out real estate.
• Dubai’s property has a short payback period. The average period is about 10 years.
• The UAE’s housing demonstrates a high ROI. It reaches 7–10%, depending on the type of real estate and its location. Taking into account the affordable average home price in Dubai, buying property in this city is one of the best ways to invest money and increase capital.
• The UAE has a pleasant climate. It is the perfect place for lovers of the sun, sandy beaches, and warm seas.

The process of real estate buying requires considering many factors and having certain knowledge. To find a suitable property at an average home cost in Dubai for both beginner and experienced investors, it is best to apply to a specialized agency. Golden Bee is a professional team that helps dozens of people from all over the world every day to find and purchase their dream homes. We offer a convenient scheme of cooperation with clients, providing a complex approach to buying property. Our specialists will select a wide range of Dubai homes at reasonable prices for you. Use the help of the Golden Bee Agency to discover new investing prospects!