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- Affordable Housing in Dubai: Key Facts
Understanding the Mechanisms: How Affordable Real Estate works in Dubai
Around the world, people spend an average of 30-33% of their income on housing. At the same time, buyers seek real estate investments that promise profitability and offer reassurance regarding the safety and quality of the property's location.
According to a 2018 Deloitte report, rentals or mortgages are considered affordable in Dubai if they are less than AED 9,300 ($2,500) per month, or about AED 112,000 ($30,500) per year.
The average price of a one-bedroom apartment for sale in Dubai is AED 670,000 ($182,500). The cost of properties varies depending on factors such as area demand, building prestige, and developer reputation. For instance, a one-bedroom apartment in Jumeirah Lake Towers may cost AED 675,000 ($184,000), while a similarly sized apartment in International City could be priced at half that amount.
The Importance of Quality in Dubai’s Real Estate Market
Will the introduction of more affordable real estate options increase property demand in Dubai?
Those visiting Dubai temporarily often do not prioritize purchasing homes. Conversely, individuals considering long-term residency or investment are typically drawn to the premium and super-premium sectors.
According to a Deloitte report, developers favor upscale projects due to their higher profit margins. In Dubai, there is limited motivation to build low-cost housing as it does not attract substantial demand.
The crucial factor here is quality—a key consideration for buyers that remains a priority. Real estate in well-located areas with access to desirable amenities commands higher demand. Developers in Dubai should concentrate on aligning their projects with buyers' needs and preferences rather than simply focusing on reducing costs.
Nevertheless, housing in Dubai remains relatively affordable compared to major global cities such as London, Hong Kong, New York, and Tokyo, particularly when considering the quality of life that the emirate offers.