Cheap Properties in Dubai

Breathtaking Dubai skyscrapers and luxury villas make it seem as though only millionaires buy real estate there. But this is only partly true, because like any other country, Dubai has areas with less pretentious apartment buildings, and, accordingly, cheaper properties. 

• What is Happening With Property Prices?
• What Are Considered Cheap Apartments in Dubai?
• Pros and Cons of Cheap Properties
• Real Estate Prices

What is Happening With Property Prices? 

The Dubai real estate market has had its ups and downs. The last global crisis and decline in oil prices led to a significant reduction in the cost of properties. In five years, some properties saw a nearly 40% decline in prices. The oversupply on the market, due to the launch of numerous ambitious yet challenging development projects, has also contributed to this situation. Some of the projects have even frozen. However, real estate prices have begun to rise again after the pandemic and now experts say the Dubai real estate market is enjoying another boom. 

All this is aided by the actions of local authorities, who have eased visa programs to boost the inflow of foreign investment into the country, and by the current global situation, in particular, the economic inflation affecting many other countries. The influx of expats and capital from other countries has stimulated the growth of prices per square meter. According to various experts, real estate in Dubai has risen in price by an average of 10% and rental rates have increased by almost 20% over the past year alone. Moreover, this situation is typical for all property segments — from cheap studio apartments to luxurious mansions.

What Are Considered Cheap Apartments in Dubai?

Properties costing up to $100,000 with an area of 30 to 70 sq. m. are considered cheap in Dubai.

You can buy real estate at the lowest prices on the Dubai primary and secondary market. Most often these are studios or one-bedroom apartments in new buildings. However, secondary properties sometimes have better locations in areas with well-developed infrastructures built eight to 10 years ago. New properties are mainly built in districts and neighborhoods that have just begun to build up and are located at a distance from metro stations and centers of attraction. You can get from inhabited areas to different parts of the city by public transport. To do this in new districts, you will have to use your own car or taxi.

Properties in finished condition with built-in kitchens cost up to $100,000, but there are properties sold without furnishings on both the primary and secondary markets. Some secondary properties may include a finished washing machine, extractor hood, or a stove.

There is a traditionally high demand in the cheap sector of the market since such properties are a good start for expats. These properties are also a good option for investment with experts promising a rental income of 5 to 7% per annum. Relatively inexpensive apartments with a good view and a convenient location disappear quickly from the market.

Pros and Cons of Cheap Properties

The main advantage of cheap properties is not only their affordability, but also their attractiveness as investments. To this end, it is important to note that experts advise foreigners to first become acquainted with the country by purchasing real estate such as this, that utility bills will be low in small apartments, and, additionally, it will not be difficult to sell small and inexpensive properties in the future.

It is also important to choose the right developer. Be sure to check their reliability, find out the cost of their services, and evaluate their constructions on the primary property market. Real estate agents advise buying properties only in finished complexes or at the final stages of construction to minimize the risk of project freezes and delays in the delivery of properties. If you want to buy an apartment on the secondary market, it is important to assess the location and condition of the property, understand the factors that will determine future rental income, and to check whether the property is already pledged or not.

Real Estate Prices

On the Dubai secondary market, you can buy, for example, a 37 sq. m. studio apartment with built-in kitchen furniture and a washing machine for AED 220,000 ($60,000). You will find such apartments with balconies in a premium high-rise residential complex in Dubai Production City. The complex has a gym, a swimming pool, a sauna, a steam bath, and an aerobics center. There is also a tennis court, a playground, and a barbecue area on the grounds. There are several schools, kindergartens, restaurants, supermarkets, and medical institutions in the district. The international airport is only a 10-minute drive away.

A 44 sq. m. secondary studio apartment in England Cluster in Dubai International City will cost a little more, approximately AED 225,000 ($61,000). The kitchens in these apartments are partially furnished. The residential complex consists of low-rise buildings with a height of up to four floors. The residential area is located among landscaped gardens with fountains and playgrounds. In the immediate vicinity of the community, you will find Dubai International Academic City, which includes several international and local universities along with supermarkets, shops, restaurants, medical and fitness centers, a metro station, and a public transport stop.

You can buy a 68 sq. m. one-bedroom apartment with a balcony for AED 328,000 ($89,000) in Dubai Residence Complex with indoor parking, a swimming pool, and running and walking tracks. The complex is a 30-minute drive from Al Maktoum Airport and a 25-minute drive from the Mall of Emirates and Dubai Mall.

Primary properties are usually a little more expensive. For example, you can buy a 41 sq. m. studio apartment for AED 396,000 ($108,000) in a residential complex in Motor City where the Formula 4 track and autodromes are located. Nearby, there is a shopping mall, playgrounds, restaurants, schools, and medical centers. These properties are set to be completed in 2026.

In A Nutshell

Cheap properties in Dubai are an excellent choice for students and employees with student and work visas. They may also be of interest to investors who rely on rental income and especially to those who have other properties in the UAE. However, those who wish to obtain a long-term residence visa specifically for buying real estate need to choose slightly more expensive properties starting from around AED 750,000 (about $205,000).

Cover photo: paweldotio (Unsplash)