Price review in the UAE and the prospects of the real estate market in 2021 | AX Capital

Price review in the UAE and the prospects of the real estate market in 2021

How much does real estate cost in the UAE?

How much real estate costs in the UAE depends on many factors. According to experts, the reduction in the construction of new residential buildings will definitely lead to an increase in apartment prices in the near future.

Since the beginning of this year, the cost of detached houses has decreased by 3.2% in Dubai. Apartments in high-rise buildings have become cheaper by 1.1%, but despite this, apartments were sold better than villas in 2020.

At the end of 2019, the rent level of residential real estate decreased by 2.4% in Dubai, as the offer is over asking in this sector now.

Apartment prices in the UAE 2021

Here are some examples:

One-room apartments with a luxurious finish cost 740 thousand dirhams in Meydan One.

The project offers an apartment with two bedrooms and a wonderful city view in Dubai Healthcare City. This luxurious place costs 1 million 595 thousand dirhams.

The residential complex has a swimming pool, a landscape park, a sports hall, and near the house there are a lot of restaurants and shopping centers that have become the sights of Dubai.

Two-bedroom apartments with a luxurious finish are sold for one million 189 thousand dirhams in the Al Barsha South district in the Dubai Science Park. There is a barbecue area, a game room for children, an outdoor playground, as well as a supermarket and a restaurant on the territory of the residential complex. Shopping centers, schools and hospitals are located near the residential complex.

Two-bedroom apartment with a first-class finish is sold for 975 thousand dirhams in Dubai. Cabinets in the rooms and in the kitchen are built-in, which saves living space, because it is not necessary to put additional furniture in the rooms. There are swimming pools, a fully equipped gym and a restaurant on the territory of the residential complex. A golf center is located next to the residential complex.

A three-bedroom apartment costs 4 million 500 thousand dirhams in Sky View Tower in Dubai. The residential complex has private parking, and there is always a concierge inside the building.

The house and its surrounding area are guarded for 24 hours a day and seven days a week. Residents can use the swimming pool at any time. It is open for them around the clock.

A four-bedroom Spanish-style villa is worth 6 million 933 thousand dirhams in the Royal Golf Villa in Dubai. There is a running track, a gym, a swimming pool on the territory of the house. Each room has air conditioning. The kitchen is fully equipped in the house. Guests can enjoy sea views from the villa.

The luxurious villa is sold for 3 million 48 thousand dirhams in Dubai Hills Estate. There is a golf club, many modern health clubs, playgrounds for children, running tracks, four schools not far from the house. If you buy this villa, you will be full of joy, happiness, serenity and luxury.

Prices for apartments and villas are not still growing in the UAE in 2021, so experienced investors and buyers choose this moment to buy real estate.

Real estate price dynamics after the crisis in the UAE

According to the International Monetary Fund (IMF), due to the reduction in the oil cost and the coronavirus pandemic, the economy of the United Arab Emirates will fall down by three and a half percent in 2021. However, the real estate market has been undergoing changes since 2008 in the United Arab Emirates, so the country’s authorities have learned how to act in a crisis so the economy decrease is at the low level.

The economic downturn was observed from the end of 2008 to the first half of 2011, when the cost of housing and commercial premises decreased by 53%. By the third quarter of 2011, the housing sector began to revive in the country after the global economic crisis. And the prices rose by 67% in apartment buildings and villas. Due to the coronavirus pandemic, the demand for real estate decreased slightly in 2020. 56 thousand properties entered the primary market in 2019. 575 thousand new houses are sold at the moment in Dubai.

The new real estate market was replenished with 8 thousand objects in Abu Dhabi last year. 265,000 new apartments are sold in the city now. Due to the offer and demand difference, property prices in 2020 and early 2021 will not increase in favor of sellers in the UAE. However, the situation is gradually changing, because the world exhibition “Dubai Expo” is planned to be held in this country in 2021. According to economics and real estate experts, this event will activate buyers and tenants of local housing.

As mentioned above, there are no plans to build as many residential buildings in the United Arab Emirates for the next few years as it was in previous years. The number of proposals from construction companies will decrease, which may lead to an increase in the cost of housing. The Dubai Land Department has doubled the fee for registering property ownership to artificially reduce consumer demand. Now it is necessary to pay 4% of the apartment price instead of 2% as previously. The average Dubai real estate price is 5 thousand 920 dollars per square meter, so most apartments with an area of 120 m2 cost about 711 thousand dollars in the center of the metropolis. You can rent out such housing for 3 thousand dollars a month, which gives you about 5% of profit a year. Real estate agency in Dubai (UAE) offers to buy and rent luxurious residential and commercial properties in Dubai and Abu Dhabi.

We will help you choose the best housing in the United Arab Emirates

You can start to realize your dream of buying a villa or apartment in the United Arab Emirates today. We are happy to help you with this, so we have collected many of the best apartment offers for sale in Abu Dhabi and Dubai. You can find and buy your desired house with us.