You probably imagine Dubai as a city full of soaring towers in the clouds. Yes, it’s true, Dubai is a city full of skyscrapers, each containing many apartment units.
For this reason, most people around the world dream of owning an apartment in Dubai and living above the skies. Have you ever thought of buying an apartment in Dubai?
Do you know what types of apartments exist in Dubai? Do you know how to buy them? If you also have many questions about buying an apartment in Dubai, stay with us in the rest of this comprehensive article. We tried to answer all the tips you need to buy an apartment in Dubai.
Overview of the Dubai apartment market
Since 2019, due to the outbreak of Corona and related quarantines, the Dubai real estate market suffered a sudden shock and stagnation. In that situation, the total volume of transactions in Dubai decreased by 11% and the price of apartments in Dubai decreased by 6% compared to the previous year.
But from 2021 and after the improvement of the corona disease, the conditions of this market began to improve, and after that the volume of transactions reached its highest level in 2022.
The transaction value of the Dubai real estate market will exceed 240 billion dirhams ($65.33 billion) in 2022, registering a 61 percent increase compared to the previous year. The Dubai real estate market also experienced another record in 2022, with recorded sales reaching 88,028 transactions from 60,258 transactions in 2021 to November 2022, representing a significant increase of 46%. Before that, the highest transaction rate for this market belonged to 2013 with 38%.
The main success factor in 2022 was the sale of off-plan properties (properties under completion that are pre-sold) in Dubai, which grew by 86% compared to the previous year. This year, sales transactions accounted for 44% of all transactions, which reached 83 billion dirhams ($22.59 billion).
Among the property types, apartments dominated the Dubai market in 2022, accounting for 85% of sales.
In contrast to 2021, when the value of transactions was around 44.6 billion dirhams (12.14 billion dollars), the value of transactions reached 83 billion dirhams (22.59 billion dollars) and reached 35% of all transactions. Apartment sales transactions had the highest number (in terms of value).
Due to market fluctuations, the year 2022 witnessed changes in consumer behavior. The market has seen a growing performance due to increased demand, recent events and initiatives such as the FIFA World Cup, Golden Visa and larger efforts to move towards a digital economy.
Types of apartments in Dubai
Residential apartments are different in order to better meet the demands and needs of apartment buyers in Dubai. Apartments are different in terms of size, number of rooms, interior design (luxury and modern) and also in terms of cost.
Most of the apartments in Dubai consist of two or three rooms, which are built in different sizes. These apartments are in the most demand among families and people who prefer to live with a roommate. For those who don’t have much budget or live alone, there are studios and one-bedroom apartments in each tower.
Many believe that the price of renting or buying small apartments such as studios is suitable for one person, which are cheaper than other apartments. Among the apartments, there are also ordinary 4-bedroom penthouses or duplexes, which command the highest price among apartments.
Top areas to buy apartments in Dubai
Dubai has considered attractive areas for international investors and expats. Due to the impressive start of 2022 in the field of real estate, the sale and rental prices of apartments in Dubai have grown significantly, which indicates the high demand in both affordable and luxury real estate.
The most sought-after apartment neighborhoods in 2022 are located in Downtown Dubai, including Palm Jumeirah and Downtown Dubai; Therefore, the price of apartments in Dubai in the first half of 2022 has seen an increase of 1-19% for these areas.
Dubai Marina, Palm Jumeirah and Downtown Dubai are the most popular completed areas for renting and selling luxury apartments in Dubai. One JBR is a luxury residential tower in Jumeirah Beach Residence and Dubai Properties is implementing this project.
Jumeirah Village Circle (JVC) and Business Bay are also affordable and popular neighborhoods. Business Bay, Damak Hills 2, Jumeirah Lake Towers (JLT) are also among the other main options for affordable apartment buyers.
Luxury apartments vs. cheap ones
Dubai is famous for its luxurious lifestyle and its real estate market has a wide range of luxury residences to choose from and has seen significant growth in Dubai in recent years.
However, there are many residential options for those looking to buy apartments in Dubai to choose from. Different areas are being designed and built for different groups, from cheap areas to luxury areas. Both these areas offer various amenities and facilities along with access to public transport in Dubai.
Most of the buildings in Dubai have high international standards in terms of design and construction. While luxury villas and apartments have great facilities and are made of world-class materials, affordable apartments are offered with acceptable materials and designs. In general, choosing between luxury or budget units in Dubai depends on your personal preferences, budget and lifestyle.
How to find the best deals on apartments in Dubai?
The best way to get a good deal is to choose a real estate company that specializes in selling properties in Dubai. A company that has a history of successful presence in this market and provides you with experienced consultants who will introduce the best options according to your conditions and wishes.
United Seven is one of the real estate companies that have been with you from the beginning of this process, introduced you to various options with suitable conditions, and after choosing, they will be with you in all the administrative steps until the completion of the purchase. In addition to providing options by consultants, you can see the default apartments in Dubai along with their prices on the United Seven website.
Advantages of buying an apartment in Dubai
- The amount of compound growth rate: studies of the apartment market in Dubai show that from 2018 to 2027 the compound growth rate will be 4 percent annually. The compound annual growth rate (CAGR) is a special term in the field of investment that shows the rate of return on fixed investment for the investment you have made. According to this definition, when you buy an apartment in Dubai, 4% of your investment will be returned to you annually.
- Apartments are more affordable: price and size are one of the most important factors when buying or renting a property for most people. In most cases, apartments are less expensive than villas in Dubai as villas usually offer a larger interior space in addition to an external terrace or garden area.
- More apartments in popular residential areas: Some residential areas in Dubai offer a wide range of properties for sale and rent, but in many areas your choices are relatively limited. For example, Downtown Dubai, which is one of the top neighborhoods due to its central location and is very popular among apartment buyers in Dubai; Its residential units are mostly apartments, and it is likely that a buyer will have trouble getting a villa in this neighborhood.
- Maintenance cost: It is very important to know the different maintenance costs of villas and apartments in Dubai. In general, villas are more expensive to maintain than apartments; One obvious reason is the larger space and the lack of shared services (unlike an apartment in a building).
Challenges of buying apartments in Dubai
- Market volatility: The real estate market in Dubai is volatile. Prices can increase or decrease rapidly depending on market conditions and external factors such as global economic events, changes in government policies, and oil price fluctuations. Therefore, investors should be cautious when investing in the Dubai real estate market and do thorough research on market conditions before making a decision.
- Legal issues: Property laws in Dubai are different from many countries. In some cases, there have been cases of fraud or property ownership disputes. Before investing in the Dubai real estate market, it is essential to have a thorough understanding of the legal framework and professional legal advice.
- Payment terms and property delivery: In some cases, developers may delay construction or not complete projects, leaving investors with incomplete or abandoned properties. To reduce this risk, investors should do a thorough investigation on developers and construction companies before investing in any project.
- Oversupply: Dubai has historically been known to have an oversupply of residential and commercial properties. This oversupply can lead to lower property prices and rental yields, making it difficult for investors to sell or rent properties. Investors should research market demand and supply before investing in any property to ensure they are not investing in an oversupplied market.
- Currency risks: Dubai’s currency, the UAE dirham, is dependent on the US dollar, and this can lead to exchange rate fluctuations. This issue can affect the capital value of an investor in the Dubai real estate market. Investors should consider currency risks and be ready to manage their funds.
How to choose a suitable apartment in Dubai ?
The best apartment for you is the one that includes the majority of your options. Before looking to buy an apartment unit in Dubai, first prepare a list of your needs and desires.
This list should be based on your most important priorities and in order. For example, your budget is the most important factor in choosing an apartment. So, in your first priority, determine the price range and search according to it in different areas of Dubai. According to the budget, the area and the size of the apartment can be different.
In other cases, the budget and size may be important for you. For example, you cannot have a three-bedroom apartment in the center of Dubai with an average budget, and you have to go to other free areas for immigrants.
In general, buying an apartment in Dubai is the same as buying an apartment and property in your own city and country. The only factor to focus on is the Dubai rules and seller’s terms and conditions, which should be checked beforehand.
Tips for investing in apartments in Dubai
The six vital steps that you should consider in order to take full advantage of buying an apartment in Dubai include:
- Have a clear goal in mind for your investment.
- Know the real estate laws of the area where you want to invest.
- Choose a suitable place for investment.
- Choose a reputable company to manage your property.
- Invest in the proper maintenance of the property.
- Consider real estate as a medium- to long-term investment.
Each of these six stages play an important role in empowering investors to make the right choice and gain profit, however, one of the things that is particularly important in choosing the right apartment for investment is the “location” issue. When considering a property, investors should keep in mind that the “right location” depends on a variety of factors, including the current state of the market, the local economy, the availability of amenities, and the growth potential of the area.
Conclusion
In this article, we have clearly stated for those who intend to buy an apartment in Dubai, what types of properties exist in Dubai and how you can choose the best option among them. In fact, it all depends on your budget and your wishes. Dubai is a city where there is a suitable property for every class with every taste, just specify what you want and search according to it in different areas. It will reduce the risk and time of purchase for you.