In the Dubai real estate market, there are quite a lot of offers of studios and apartments in the price category up to 135 thousand dollars. These are apartments with an area of up to 70 square meters with high-quality finishes, a built-in kitchen, but unfurnished.
Such lots are found both in the primary and secondary markets. Demand in the budget segment is traditionally high: objects are purchased both for living and for investment. This is a great option for a novice investor who wants to assess the market situation and decide in which direction to move further.
Such properties, especially when it comes to a good view from the window and convenient transport location, instantly find buyers. Compared to European cities, prices for apartments with high quality finishes and developed infrastructure of the complex in Dubai are 20-30 percent lower.
It is worth noting that in the luxury real estate segment, prices in Dubai are lower than in other major cities in the world. If we compare with Moscow, the cost of villas of approximately the same level in these two cities will be the same.
1. Supply and Demand Dance and Loyal tax policy.
This is one of the most important factors that contributes to the retention of house prices and answers the question of why real estate is cheap in Dubai. The emirate does not have personal income tax, capital gains and a number of other fees, which attracts thousands of foreign investors and expats. Loyal tax policies have led to the fact that the cost of living in Dubai has become lower than in Moscow and major European cities. In Dubai, the real estate market can sometimes resemble a crowded dance floor. During periods of rapid development, supply can outpace demand, leading to more options for buyers and renters alike. This healthy competition often results in more affordable prices compared to other global cities where space is tighter than a pair of skinny jeans after Christmas.
2. Foreign Investment Flair
Dubai has always been a magnet for global investors seeking a slice of the Middle Eastern pie. However, fluctuations in global economies and market conditions can create waves in Dubai’s real estate sector. When the tide is low, prices can dip, offering savvy investors and home seekers a chance to snag a bargain.
3. Location, Location, Location
In Dubai, location isn’t just a real estate mantra it’s a game-changer. Properties in emerging neighborhoods or those further from the city center often come with friendlier price tags. Don’t be surprised to find hidden gems nestled in quieter corners or up-and-coming districts where the skyline views are just as impressive, but the zeros on the price tag are fewer.
4. Economic Echoes
Like anywhere else in the world, Dubai’s housing market can sway to the beat of economic booms and busts. Factors such as global oil prices, regional geopolitical stability, and local economic policies can influence property prices. During economic downturns, for instance, sellers may lower prices to attract buyers faster than you can say “dirham discount.”For Dubai’s economy, the real estate sector is vital. With any fluctuations, the market reacts accordingly. Why do apartments in Dubai remain cheap during the economic crisis in the world? The stable exchange rate of the authorities makes it possible to keep real estate prices at the same level or slightly increase, while in other countries prices for similar housing are growing rapidly.
5. Cultural Cues
Dubai’s cultural melting pot adds another layer to the housing affordability puzzle. With expatriates making up a significant portion of the population, rental demand fluctuates with changes in job markets and visa regulations. This diversity can create opportunities for those seeking rental bargains or investment properties with potential for long-term growth.
6. High profitability.
Many expats prefer not to wait for the completion of construction, but to buy a ready-to-move property right away. This allows investors to play on the difference in price when buying a property under construction and selling it after the house is commissioned. Properties in popular areas are always in demand among expats, so there are no problems with the sale.
Separately, it is worth highlighting the benefit in the form of minimal costs for the purchase of real estate. The owner of the apartment or villa does not pay any taxes, except for further payment for the maintenance of housing.
Golden Bee specialists will help with the purchase of real estate in Dubai on attractive terms. We work directly with Dubai developers and achieve profitable offers for our clients. At the same time, our agency does not lobby the interests of developers: you can be sure that you are buying truly high-quality and profitable housing.
7. Transparent legislative framework.
A foreign investor has the right to purchase housing in freehold zones in full ownership. All real estate transactions are controlled by the state, the buyer receives a certificate of ownership immediately after the conclusion of the transaction at the Land Department. The seller is obliged to provide reliable information about the object, concealment of any facts is punishable. An investor can be completely sure that he is buying a high-quality property, and not think about why his apartment in Dubai is so cheap, and whether there are any problems that have affected the cost.
Why Invest in Dubai’s Affordable Housing?
Investing in Dubai’s more affordable housing options isn’t just about saving dirhams—it’s about tapping into a dynamic market with potential for growth and diversity. Here’s why:
- Strategic Location: Gateway to global markets with world-class infrastructure.
- Diverse Options: From cozy apartments to spacious villas, catering to various lifestyles.
- Investment Potential: Opportunities for rental income and capital appreciation.
- Quality of Life: Modern amenities, cultural richness, and a vibrant expat community.
Your Dubai Dream Awaits
So, why are houses cheap in Dubai? It’s a blend of supply dynamics, economic ebbs and flows, and a dash of cultural flair. Whether you’re looking to invest, relocate, or simply dip your toe into the Arabian property market, Dubai offers a kaleidoscope of opportunities for those willing to explore.
Grab your map, polish your negotiation skills, and dive into Dubai’s real estate scene with confidence. From bustling city hubs to serene suburban havens, there’s a home in Dubai that’s just right for you. Cheers to unlocking the secret behind Dubai’s affordable housing and to finding your perfect piece of desert paradise.
