Dubai Real Estate Market Shifts to Affordable Properties Under AED 1M
DUBAI REAL ESTATE MARKET SHIFTS TO AFFORDABLE PROPERTIES WITH 40% OF SALES UNDER AED 1M
Dubai’s real estate market is leaning toward greater affordability, with nearly 40% of ready home sales priced below AED 1 million ($272,000), according to ValuStrat. Demand for mid-market properties is being fueled by population growth, favorable interest rates, and record-breaking sales. Since 2020, villa prices have doubled, while residential property values have seen an annual increase of 28.9%. Although the average home size has declined, prices per square foot have softened slightly; however, villa prices surged by 33.1%, and apartment values rose by 24.8% this quarter. Apartment rents saw a 15.4% increase, significantly outpacing the 4.9% rise in villa rents. This shift highlights Dubai’s efforts to make housing more accessible to a wider demographic.
Commercial real estate in Dubai remains robust, with steady office demand pushing capital values up by 2.6% quarterly and contributing to a substantial 25.8% annual rise. Office rents have increased by 20.8%, and warehouse values have grown by 14.6% over the past year, bolstered by favorable market conditions, business expansions, and the arrival of new companies in the region. Dubai’s hotel inventory has now outpaced major cities like London and Paris, fueled by high year-round occupancy rates and a strong influx of tourists. This momentum highlights Dubai’s growing appeal as a global business and tourism hub, further reinforcing its market strength.
Commercial real estate in Dubai remains robust, with steady office demand pushing capital values up by 2.6% quarterly and contributing to a substantial 25.8% annual rise. Office rents have increased by 20.8%, and warehouse values have grown by 14.6% over the past year, bolstered by favorable market conditions, business expansions, and the arrival of new companies in the region. Dubai’s hotel inventory has now outpaced major cities like London and Paris, fueled by high year-round occupancy rates and a strong influx of tourists. This momentum highlights Dubai’s growing appeal as a global business and tourism hub, further reinforcing its market strength.
