A GUIDE TO DUBAI PROPERTY PRICES

Dubai property has witnessed a spike in demand ever since the global COVID-19 pandemic struck the world. The low property prices have attracted many people to buy property in Dubai for investment or residential purposes. However, before you buy a Dubai property, it is imperative to know the factors that cause fluctuations in the property prices.

Factors like the location of the property and infrastructure and transport facility of the surrounding area have a significant impact on the property prices. This guide will walk you through various crucial aspects in detail to help you understand the dynamics of real estate in Dubai.

Here are some factors you need to assess that may have an impact on Dubai property prices:

1. Locality

The locality of the property is considered the most crucial factor affecting the value of a particular property. Property existing in a well-established area will be more prestigious and have a higher value. It is highly likely for the value to increase compared to the property located in underdeveloped areas.

Experts say that a house or property situated in a well-developed neighborhood may have prices around 50 percent higher than a house located in an average location. To assess and understand the Dubai property prices, you should know about the dynamics of a location you are interested in.

For instance, it will be wise to invest in some hotel property if you are interested in an area saturated with tourist spots. Contrarily, if the area is a business hub, investing in commercial property would be the right move.

If you talk about Dubai property prices, the hotel facilities located in the Marina area are in high demand. Plus, you can find prestigious commercial property situated in the emirate’s Tecom district.

There are plenty of locations in Dubai that you can explore if you take professional guidance from a real estate firm. You can speak to them about your interests and requirements, and they could help you pick the right locations.

2. Ease of Transport

Dubai real estate prices vary greatly depending on the availability of transport facilities in the area. People want to travel hassle-free to their workplace or holiday destinations therefore they would love a place with easy access to transport linkages. For instance, the real estate value reduces significantly if the commute is too long for people from a particular area.

After the completion of the Dubai Tram project, transport has become easier for people living in different areas of Dubai. The Dubai real estate prices may increase due to better transport infrastructure. The prices of average income housing are increased if the property is located near a public transport like train and bus stations.

Similarly, commercial property close to road linkages and transport links is more attractive to the tenants, resulting in higher property prices. On the contrary, the value of hotels decreases if the area is surrounded by noise pollution, crowds, and traffic. So Dubai house prices may go higher if the property is near transport linkages, allowing communities to connect conveniently.

3. Infrastructure

The infrastructure surrounding the area of property also affects the Dubai property prices. A property near amenities and facilities that tenants and occupiers will require or use will more likely have a higher value.

When investing in Dubai hotel property, make sure to consider the needs of the tourists during their stay. Hotels that generate high income are situated in a prime location surrounded by a hospital, post office, shops, and different tourist attractions.

Contrarily, for a commercial property, look for something located at a distance from tourist spots, near bank offices and food services, and having plenty of parking spaces and transport linkages, ensuring the best property prices.

4. State Of Surroundings

The environmental conditions of the surrounding area also play a key role in determining Dubai property prices, especially for Dubai house prices and hotel property. Tenants or tourists consider factors like the quality of air and water in the area when looking for holiday accommodation or a new house.

Localities with a greener environment like those situated far from industrial units and close to recycling centers offer higher profits. Also, property offering beautiful views has a significant impact on prices. For instance, a tourist will be more inclined toward a hotel offering views of the emirate's skyline, allowing the hotel to charge higher for rooms compared to those offering dull or unexciting views.

So consider the surroundings of the area before deciding on any Dubai property to ensure a greater return on your investment.

Is There An Uptick In Demand For Dubai Property?

The Dubai property market has seen a surge in buyers willing to capitalize on the low prices ever since COVID-19 restrictions lifted last year. The sales prices started to increase in the second half of last year. However, the high-end properties in prestigious locations enjoyed most of the profits.

Buyers are willing to invest in villas and townhouses with huge outdoor spaces offered at considerably high prices. But, buyers' interest may shift toward apartments once the supply of quality units is reduced. Consequently, apartments may begin seeing a price surge.

Further, some developers may cause an additional demand for apartments due to increased sales of their finished and off-plan projects to people visiting Expo 2020. It would be a good opportunity for investors and visitors to know about varying Dubai real estate prices instead of opting for high-priced townhouses and villas.

Even though the property prices have been increasing since the last year, the current prices are still lower than the peak in September 2014. As a result, the Dubai property market has witnessed a high number of buyers over the past two years.

The Bottom Line

Hopefully, after reading our guide, you know the different factors affecting Dubai property prices. Be mindful of these factors before investing in real estate in Dubai. Look for profitable locations with well-developed infrastructure and a pleasant environment. To give you more clarity on the matter, you may also seek the professional assistance of a real estate firm to make the process of buying property in Dubai less cumbersome for you.