The most affordable and luxurious properties in Dubai

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The most affordable and luxurious properties in Dubai

Most people associate Dubai with luxury. Indeed, the emirate is the number one in the Middle East and the 11th in the world among the cities with the largest percentage of billionaires. Buying luxury real estate in Dubai is an attractive investment option for wealthy people around the world. In 2022 alone, the total value of transactions for the purchase and sale of premium housing here increased by 97%. Many people choose this city as their second home. However, not only ultra-luxury projects worth dozens of millions of dollars are built in the emirate: buyers with different goals and budgets can find a decent and profitable option here. In this article, we discuss the prices of real estate in Dubai and other cities around the world and consider the most affordable and luxurious projects on the market in 2023.

The minimum cost of housing in Dubai

According to Aram Grigoryan, the senior real estate expert in the AX CAPITAL agency, affordable real estate in the emirate can be purchased for AED 367,000–440,000 (USD 100 000–120 000). It will be the most economical option — a studio in one of the developing, not central areas of the city. However, such a purchase has its advantages. First, prices in communities that are still under construction are increasing at a faster pace than in already completed locations. As infrastructure develops, the cost of housing can double. This, for example, happened in Dubai Creek Harbour and Dubai Hills. Secondly, even affordable options in Dubai have additional amenities within the residential complex: a swimming pool, gym, 24-hour security. Apartments are delivered with finishing and partial or complete furnishing. Investors receive real estate in a safe country with a growing market and excellent prospects for renting at a comfortable cost.

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Luxury real estate prices: Dubai vs. Monaco

Even after a two-year growth of 20–80%, the cost of luxury real estate in Dubai is lower than in other megalopolises around the world. Thus, with having AED 3.67 million (USD 1 million) in Dubai you can buy 105 m² of premium real estate. In Monaco, for the same amount of money, you can buy only 17 m2, in Hong Kong — 21 m², in London and New York — 33-34 m². At the same time, residential real estate in the UAE is not taxed, which significantly reduces the cost of its maintenance. A similar trend can be seen in the mid-range price segment.

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The most popular neighbourhoods for buying residential real estate

Neighbourhoods with affordable real estate

What are the most popular areas for minimum and maximum investments in real estate? Among the locations with the most economical and profitable offers are:

Sports City is a quiet neighbourhood with a cricket stadium, a variety of sports fields, villas, and apartment buildings.
Production City is a mixed community with residential and commercial properties near Al Maktoum International Airport.
International City is one of the most affordable residential areas next to Dubai Safari Park and Academic City with branches of the world’s leading universities.
Silicon Oasis is a neighbourhood with similar characteristics. There are studios, apartments, and small communities with villas and townhouses.

In these areas, a compact 32-square-metre studio can be purchased for AED 380,000 (USD 103,500). There are also cheaper offers.

An important feature of these communities is the high return on investment (ROI) for studios and one-bedroom apartments. ROI in the International City area is 8.4%, in Silicon Oasis it is 8.1%, while in Investments Park, Sports City, and Production City — 7.4% per annum.

Villas and townhouses are traditionally more expensive, but you can still find great deals here. Among the communities with low-cost houses are Damac Hills 2, Villanova, and Jumeirah Village Circle (JVC).

Damac Hills 2 is a green community with landscaped gardens, squares, boulevards, and fountains. Residents have access to a spa, gym, community centre, and yoga studio. This is one of the most environmentally friendly areas in Dubai. The average cost of a three-bedroom villa is AED 1.1 million (USD 299,500).

Villanova is a project with Mediterranean-style villas and townhouses in the Dubailand area. Here you can find a three-bedroom house at AED 1.6 million (USD 435,500).

Jumeirah Village Circle is one of the most popular family areas in Dubai, combining great prices with amazing infrastructure. The community with parks, reservoirs, fitness centres, shops, a school, and a kindergarten offers villas starting at AED 1.9 million (USD 517,500).

Neighbourhoods with high-end projects

The most popular locations with luxury real estate are Emirates Hills, Palm Jumeirah, and Jumeirah Bay Island.

Emirates Hills is a prestigious golf community with villas and one of the most expensive and luxurious areas in Dubai. Local prices start at AED 8 million (USD 2.2 million), but such options are not common. An elegant villa with five bedrooms and a private pool in the community can be purchased for AED 28 million (USD 7.6 million). The upper bar for seven-bedroom mansions can be as high as AED 190 million (USD 51.7 million). The community has a world-class Montgomerie golf club, tennis courts, large parks, many restaurants, great private schools, and playgrounds.

Palm Jumeirah is a legendary palm archipelago. It is a well-known area with an established infrastructure. New launches here are quite rare. Among the latest projects worth paying attention to is Como Residences by developer Nakheel. The 300-metre tower with a private beach will offer 76 residences with a floor area starting at 415 m2 with two to seven bedrooms, terraces, and a private lift lobby. The complex will include world-class amenities: a spa and wellness centre, a 25-metre swimming pool, business centre, paddle tennis courts, and a secluded lounge-cafe. Apartments start at AED 21 million (USD 5.7 million).

Jumeirah Bay Island is a seahorse-shaped island with premium real estate, haute cuisine restaurants, a marina, and a yacht club. The highlight of the community is Bulgari Resort and Residences. Here you can buy apartments priced from AED 10 million to 125 million (USD 2.7 million to 34 million) and villas from AED 12 million to 180 million (USD 3.3 million to 49 million). The project is great for investment: in 2022, prices in Jumeirah Bay have increased by 100%. This is the highest figure in the emirate.

Another project that deserves attention is the new complex The Ritz-Carlton Residence in Dubai Creekside. A limited collection of individually designed apartments and mansions is integrated into the elite Keturah wellness resort. The complex draws attention with its unique amenities, 5-star hotel service, and focus on the best wellness practices and standards of WELL Health-Safety. All residents will become members of a private club and have access to premium spa and wellness hotel services.

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We will help you buy real estate in Dubai

Contact AX CAPITAL, a real estate agency in Dubai, to find the best option for living and investing. Our database includes both affordable properties at bargain prices from developers and ultra-premium lots in gated communities. Qualified brokers will choose the accommodation according to your preferences, tell you about the peculiarities of the location, as well as the best investment strategies and the process of getting a resident visa. They will also take care of all issues relating to the registration of the transaction.