Buy an apartment in Dubai: how much do 1 + 1 flats cost
Housing in Dubai is bought for different purposes: one investor plans to earn money by renting out apartments, someone wants to resell the property and make a profit, and someone is considering buying an apartment for their residence.
The most popular property in UAE is 1+1 housing. How much will a similar apartment in Dubai cost? The cost depends on the site of the floor, as well as on the location of the house in the city.
Сost of one-bedroom apartment in UAE in commissioned buildings here starts at 127 thousand US dollars. To buy luxury apartments, you must pay an average of USD 700,000. You can find an apartment with a 1 + 1 layout worth over one million dollars.
Real estate in Dubai
Thinking of property in Dubai, it is less expensive to purchase a one-bedroom apartment in the peripheral quarters of the metropolis, for example, in Dubailand and International City. The minimum prices for residential real estate 1 + 1 here are about 70 thousand US dollars; the average cost of such apartments ranges between USD 85,000 – 87,000, while the most expensive ones cost USD 240,000 – 260,000. It is profitable to rent such housing: up to nine per cent of the cost of housing can be returned in this way per year. Reselling apartments in areas far from the city centre is difficult. International City and Dubai’s reputation have been damaged because apartments here are rented by several ex-pats working in Dubai for little money. In addition, infrastructure needs to be better developed in the Dubailand area, and houses in International City are considered old (the area is about 20 years old). The quality of housing here was initially at a lower level.
How profitable can investment in Arab real estate be?
Profitability indicators are calculated in RY (Rental Yield). This is the difference between the income from renting an apartment and the cost of maintaining housing. Another way to calculate profit is ARY (Annual Rental Yield). It is obtained by dividing the annual rental income by the apartment price and multiplying the result by 100. Studying market conditions and long-term planning allows you to get a stable and predictable profit. Experts say that the ARY profitability from renting an apartment in Dubai could look like this:
- up to 7.5% for studio apartments and one-bedroom apartments;
- up to 5.8% per annum for two-bedroom apartments;
- up to 5% for apartments and houses with three bedrooms.
The lowest yields are for premium villas with four or more rooms. It reaches 3-3.5% per annum. But let’s consider that the selling price of such objects is capitalized annually and is relatively high compared to budget apartments. The profit remains stable and relatively high.
Is it possible to make money on the resale of foreign real estate?
If you invest in off-plan objects, you can see a significant price difference already at the stage of commissioning housing. Benefits can reach up to 10% of the cost and more. In Dubai, the rate of return on the sale of housing stock varies from 7 to 9%. But these are average figures. In some communities, prices for premium properties have increased by 20% or more. This growth especially affected villas and mansions.
Why it is worth investing in real estate in the Emirates?
There are at least several reasons that ensure profitability:
- Constantly growing demand from foreigners ensures the liquidity of the housing stock.
- No income taxes, allowing you to receive net income from legal rentals.
- The privileged position of foreign investors in the country. The government seeks to attract third-party capital and offers favourable conditions to pensioners and other foreign investors.
Which developers in Dubai can you trust?
Foreign citizens often buy apartments in areas of Dubai where residential complexes are being built by state-owned construction companies, such as:
- Emaar Properties PJSC.
- Dubai Properties.
- Meras Development.
These developers often create the infrastructure of the area as a whole. They can be trusted because they are responsible for the well-being of the entire quarter territory and have long earned an excellent reputation.
Assistance in buying property in the UAE
The Emirates.Estate website presents offers from developers and real estate agencies. Among them, you can choose the best investment option and move to a permanent residence. Specialists will provide qualified assistance in choosing a housing stock and advise on the profitability of investments.
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