It is a well-known fact that Dubai has best of the luxury houses from across the globe. You will not find the kind of amenities and the interior anywhere else than here. Even the policies related to investment are quite attractive compelling investors to invest their money here. Up until recently, there has been a surge in the price of Dubai properties. As a result, there has been a huge gap between the demand and supply of luxury properties. Now, let’s get into the details of this price hike with its impact on the economy.
Property buying trend in Dubai
The rise in property purchases in Dubai is divided into several factors, such as:
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Dubai Villas:
Popular areas of Dubai like Arabian Ranches, saw a hike in the price of luxury villas by 56%, signifying the newfound interest in the premium living apartment.
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Affordable Houses in Dubai
Houses under the budget are situated in the Dubai Silicon Oasis, Damac Verona, Dubailand and Dubai Sports City. Here you will find homes under the budget, but due to the raise in demand, there was a hike of 100% in the prices here as well.
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Mid-Ranging Properties
Here you will find communities such as Jumeirah Village Circle (JVC), business bay, Al Furhan and The Springs. The prices here are not too high and not too low, but the recent demand has increased the prices by 7 to 40%.
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Luxury Properties
These properties belong to high-end neighborhoods such as Dubai Marina, Dubai Hills Estate, Downtown Dubai, and Palm Jumeirah. Now, you must be expecting a price hike on these properties as well, but this is not the case. There was a decline in the prices by 8.4% of the properties in Palm Jumeirah.
Why invest in Dubai Properties?
As an investor, one has to identify the pros and cons of the property before making any decision. Thus, to help you out in this scenario, we bought you a tabular representation of the rental yields. Come on and take a look below:
| Apartment Type | Area | Rental Yield |
| Affordable Apartment | Dubai Investments Park (DIP), Discovery Gardens, Liwan | 9% to 11% |
| Mid-tier Properties | Living Legends, Motor City, Al Furjan | 8.7% above |
| Luxury Apartments | Al Sufoh, Green Community, Al Barari | 7% to 9% |
| Villas | DAMAC Hills 2, International City | Above 6% |
Dubai Luxury and Affordable Living
Not everyone has enough funds to enjoy a luxury living in the Dubai City. In other terms, luxury comes with a price that everyone cannot pay. High-net-worth individuals generally prefer to live in lavish residencies, whereas, other people go for affordable houses. There is a huge difference between the prices of each one of them. Below is the comparison between both types of houses:
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Luxury Houses
As said earlier, people with good incomes go for the luxury houses situated in Palm Jumeirah, Emirates Hills, and Downtown Dubai. These properties range from $25 million.
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Affordable Housing
Families having sustainable income and the new working professionals go for these houses. Jumeirah Village Circle and the Dubai South are the prime location for the Dubai affordable housing. The prices of these houses are quite competitive in the Dubai real estate market.
Summing it Up!
Dubai’s property market is thriving, in line with the emirate’s economic objectives. The government is working to strengthen Dubai’s status as a global business and tourism hub, and a successful real estate sector is essential for attracting foreign investment and skilled individuals.