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What is the average house prices in Dubai?

Dubai has seen a boom in its real estate market over the past couple of decades, driven by factors like strong economic growth, increased tourism, and a surge in expatriates relocating here. As a result, property prices have risen significantly across all segments.

What is the average house prices in Dubai?

According to the latest data from respected real estate portals and consultancies, the average price per square foot for apartments in Dubai is AED 1,050 (US$286) and the average villa sales price is AED 1,322 (US$360) per square foot. However, prices can vary widely depending on location, community, developer, property age and amenities.

Prices based on property type

On average across Dubai’s freehold areas in 2022:

  • Apartments – AED 10,500 per sq. ft ($2,860 per sq. ft)
  • Villas – AED 13,220 per sq. ft ($3,600 per sq. ft)
  • Townhouses – AED 11,500 per sq. ft ($3,130 per sq. ft)
  • Studios – AED 16,500 per sq. ft ($4,490 per sq. ft)

So a 1,000 sq. ft apartment would cost AED 1.05 million ($286,000) on average. A 3,000 sq. ft villa would be around AED 3.97 million ($1.08 million).

Prices based on location

Some of the most popular areas for buying property in Dubai and their average sales prices are:

  • Downtown Dubai – AED 1,725 per sq. ft ($470 per sq. ft)
  • Dubai Marina – AED 1,322 per sq. ft ($360 per sq. ft)
  • Jumeirah Lake Towers (JLT) – AED 1,070 per sq. ft ($292 per sq. ft)
  • Business Bay – AED 1,200 per sq. ft ($327 per sq. ft)
  • Palm Jumeirah – AED 1,950 per sq. ft ($531 per sq. ft)
  • Arabian Ranches – AED 950 per sq. ft ($259 per sq. ft)
  • Dubai Hills Estate – AED 1,100 per sq. ft ($300 per sq. ft)

As you can see, prices vary widely across communities, with prime areas like Downtown Dubai and Palm Jumeirah at the higher end while places further out from the center are more affordable.

Factors impacting prices

Some of the key factors impacting real estate prices in Dubai are:

  • Location and community – As seen above, premium communities closer to the center of Dubai command higher prices. Beachfront properties are also very expensive.
  • Developer and project type – Properties from well-known developers or luxury/high-end projects have premium pricing.
  • Property age and condition – Brand new or recently completed units are more expensive than older ones. Refurbished properties can fetch good prices too.
  • Amenities and facilities – Homes in projects with plenty of amenities like gyms, pools, etc. have higher values.
  • Number of bedrooms – Larger homes with more bedrooms tend to be pricier on a per square foot basis.
  • Views – Sea views, city views, and golf course views allow properties to charge a premium over standard units.
  • Payment plans – Developers offer various deferred payment plans which can impact prices.

So pricing can vary significantly even within the same community based on these factors.

Rental yields

While buying property in Dubai can be expensive, rental yields are quite attractive averaging 5-8% per year across the emirate. Quickly growing areas like Dubai Hills Estate, Dubai Creek Harbor, etc. can fetch even higher returns.

This helps investors achieve good returns on their property purchase through rental income while also benefiting from long term capital appreciation.

Price trends

After years of decline following the 2008 global financial crisis, Dubai’s real estate market has made a strong recovery since bottoming out in 2012. Property prices have increased substantially over the past decade due to higher demand and activity.

As per official Dubai House Price Index data, average apartment prices in the emirate have risen by over 70% while average villa prices have increased by over 65% between 2012 and 2022.

In the high-end luxury segment, prices have recovered even more strongly with some projects seeing 100%+ appreciation over the past 10 years.

Going forward, market analysts forecast that prices will continue rising moderately over the next few years as demand remains resilient. So buyers entering Dubai’s property market today can expect further capital growth on their investment in the coming years.

Property purchase process

The property buying process for foreigners in Dubai is straightforward but involves several steps:

  1. Identify ideal location/community – With average prices varying widely across different areas of Dubai, shortlisting locations which suit your budget and needs is critical.
  2. Set property search criteria – Decide preferences like apartment vs villa, size, bedrooms, amenities, payment plan etc. before beginning your search. This will streamline the process.
  3. Find the right property – Search online portals like Property Finder to shortlist options. Also contact real estate agents specialized in those communities.
  4. Verify ownership eligibility – As a foreigner, check if the shortlisted properties meet location and price criteria for foreign ownership.
  5. Raise finances – Have finances ready through own funds, home loan or payment plan offered by developer. Banks can provide mortgages to foreigners.
  6. Make an offer – Submit an official purchase offer letter for seller to review and negotiate as required.
  7. Handle paperwork – Upon successful offer, appoint lawyer to help process legal documentation and attestation formalities required before completing sale.
  8. Close the deal – Final step is making payment and registering property under your name to complete handover by developer.

While the process does require coordination with various parties, the Dubai Land Department strives to make it hassle-free for investors and end-users to own their dream homes in the emirate.

Should I buy or rent?

Deciding whether buying property is a good move for you or renting may be better suited depends on factors like:

  1. Duration of stay – If staying short term, renting is better. For long term, buying allows you to lock in prices and build equity.
  2. Budget – Renting provides flexibility but buying costs are more fixed if you can afford upfront payment.
  3. Priorities – Buying makes sense if factors like children’s education, retirement security are priorities for you.
  4. Lifestyle – Renters can move more easily. Buyers should consider needs of a more settled life.

Doing a detailed cost comparison taking into account all expenses in both scenarios and also considering family requirements is advised before deciding to buy or rent in Dubai.

Key takeaways

  • Apartment prices average AED 1,050 (US$286) per square foot while average villa prices are AED 1,322 (US$360) per sq. ft.
  • Premium areas like Downtown Dubai and Palm Jumeirah command the highest prices given their central locations and amenities.
  • Prices vary significantly even within communities based on factors like property age, views, size etc. aside from area.
  • Dubai offers attractive rental yields of 5-8% on average helping investors offset costs.
  • The emirate’s real estate market has made strong recovery over the past decade with prices set to keep rising.


In summary, Dubai offers a diverse real estate landscape with options for buyers and investors at different price points. While prices in prime central locations are rising strongly, affordable options are still available in peripheral communities.

Given factors like the upcoming World Expo 2020, continuing expansion of business environment and growing population driving housing demand – Dubai’s property market retains significant long term growth potential. So buyers must assess their priorities, desired lifestyle and duration of stay while making an informed decision on buying versus renting a home in Dubai.

Frequently Asked Questions 

Q1: Where are property prices highest in Dubai?
A1: Some of the most expensive communities in Dubai currently are Downtown Dubai, Palm Jumeirah, Emirates Hills and Dubai Marina with average prices ranging from AED 1,600-1,950 per square foot. Beachfront locations also tend to be pricier.

Q2: Where can I find affordable property in Dubai?
A2: More affordable options are available in locations like International City, Discovery Gardens, Jumeirah Village Circle (JVC) and Dubailand where average prices range from AED 500-800 per square foot.

Q3: How much is a 2 bedroom apartment in Dubai?
A3: The average price for a mid-range 2 bedroom apartment across Dubai is AED 1.2 million. In prime areas, 2 beds cost AED 2.5-3 million while budget areas have options from AED 650,000.

Q4: Is buying or renting better in Dubai?
A4: Buying makes more sense for long term stays of over 5-7 years while renting is better if staying short term. Key considerations are duration of stay, budget, lifestyle priorities and family size before deciding.

Q5: What return can I expect on Dubai property investment?
A5: Average rental yields range from 5-8% per year across Dubai. Capital appreciation has averaged 6-10% recently as well. So a total return of 12-15% per annum can be expected.

Q6: Do prices keep rising in Dubai real estate?
A6: After declining post 2008 crisis, Dubai property prices have seen strong recovery since 2012 with around 65-70% appreciation in last decade. Further moderate price rises are forecast going forward by analysts.

Q7: Where do most expats live in Dubai?
A7: Key expat hubs preferred for residing include Downtown Dubai, Dubai Marina, Jumeirah Lakes Towers, Arabian Ranches, Dubai Sports City, Damac Hills, JVC, Motor City, Springs & Meadows.

Q8: How much deposit do I need to buy a property in Dubai?
A8: For off plan properties under construction, 25% down payment is required. For ready homes, banks require 25-40% deposit for mortgage while developers ask ~10% Booking Amount.

Q9: What fees do I need to pay when buying property in Dubai?
A9: Main additional costs are 4% Dubai Land Department registration fee, agent commission if applicable & any applicable VAT. Lawyer fee for documentation support is also advised.

Q10: Are there any restrictions on foreign ownership of Dubai property?
A10: Yes, foreigners need to ensure property meets location and price minimum criteria for ownership. Additional approvals required for certain prime areas.

Q11: Can I get a home loan in Dubai as an expat?
A11: Yes, many leading UAE banks provide easily available home loans for expats in Dubai typically covering 50-75% property price at competitive rates.

Q12: How much tax do I need to pay for owning Dubai property?
A12: No capital gains or recurring property taxes for individuals in Dubai. Only applicable tax is 5% VAT on purchase price and subsequent rents received from property.

Q13: Can I buy property in Dubai with cryptocurrency or Bitcoin?
A13: No, purchase payments need to be made via normal money transfer, cheque or banker’s draft methods. Crypto is still not approved for property transactions by Dubai’s Land Department.

Q14: Which public transport options are available near key Dubai communities?
A14: Dubai Metro services most central communities or major road networks available. Tram links Marina to JBR & Palm. Bus/shared taxi network connects other regions like Springs/Meadows, Ranches etc.

Q15: Where are the cheapest studio apartments in Dubai?
A15: You can find studios from AED 450,000-500,000 in locations like International City, Discovery Gardens, Dubailand, Al Furjan, Jumeirah Village Circle etc which offer the most affordable options.

Q16: Is it cheaper to buy property in Sharjah or Ajman rather than Dubai?
A16: Yes, average property prices are around 15-25% cheaper in Sharjah and nearly 50% lower in Ajman compared to options in Dubai’s budget communities.

Q17: How much does it cost annually to live in Dubai?
A17: Average cost of living including housing averages AED 160k-200k ($44k-$55k) per year for a family of four according to Dubai authorities. Scale up/down based on lifestyle.

Q18: What are service charges for homes/apartments in Dubai?
A18: Annual service & maintenance charges range 1-3 AED per sq.ft for apartments and 2-5 AED psf for villas depending on community facilities available and developer quality standards.

Q19: Are utilities like cooling, electricity expenses high in Dubai?
A19: Yes, average usage adds up to AED 15-25k per year but widely varies based property size. Villa/large units have higher utility bills than apartments or studios in Dubai.

Q20: What are the most popular areas for buying property in Dubai?
A20: Downtown Dubai, Dubai Marina, Palm Jumeirah, Arabian Ranches and DAMAC Hills topped area rankings for buyer interest and transactions in Dubai over the past year reflecting current preferences.

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