Affordable Housing in Dubai: Key Facts

Over the past few years, the term “affordable housing” has become very popular, but is not always used correctly. In this article, we will have a look at some of the debating questions connected to the issue of affordable housing in Dubai.

Affordable Real Estate: How this Concept Works in Dubai

Around the world, people spend an average of 30-33% of their income on housing. At the same time, everyone wants to see the profits of buying real estate, as well as to have confidence in the safety and convenience of the country where the purchased property is located.

Dubai has a special housing policy for people with low incomes. However, the UAE government has not officially adopted the definition of the term “affordable housing”.

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 the demand for the area, the prestige of the building, and the reputation of the developer. For example, a one-bedroom apartment in Jumeirah Lake Towers can cost AED 675,000 ($184,000). A similar-sized property in International City will cost half as much.

Quality Matters

Will the emergence of less expensive real estate attract more property buyers to the emirate?

Those who come to Dubai for a short time usually do not have an urgent need for their homes. Those who are thinking about long-term residency or investment are more likely to prefer the premium or super-premium sector.

According to a Deloitte report, developers also choose upscale projects due to their higher margins. In Dubai, developers have little incentive to build cheap housing as it is simply not in high demand.

Now we come to the most important point of quality, which is a feature that has always been and will always be a priority for buyers. Demand for real estate in a small area is high if it is well located and grants access to popular amenities. Developers in Dubai need to focus not on how cheap the property can be, but on the buyers’ needs and values.

Despite all of the above, housing in Dubai can still be called inexpensive compared to other major cities in the world, such as London, Hong Kong, New York, and Tokyo, especially if you consider the quality of life the emirate offers.

Assistance in Buying Real Estate

Do you need help choosing a property in Dubai? AX CAPITAL real estate agents are ready to accompany you at all stages, from finding a suitable property to handing over the keys. Our experts will make the process of buying a home in the UAE easy and comfortable.