Dubai's real estate market has seen significant growth, especially in prime locations such as Downtown Dubai. As demand for property remains strong, prices continue to rise, with the average cost for a 1-2 bedroom apartment standing at AED 2,077 per square foot (about USD 566).
Several factors influence property prices in Dubai:
Key Drivers of Property Prices in Dubai
- Economic Growth and Stability: Dubai’s robust economy, driven by tourism, finance, and trade, has boosted investor confidence, leading to strong demand for real estate.
- Infrastructure Development: Ongoing infrastructure projects, such as improvements to transportation and public amenities, have a direct positive effect on property values.
- Government Policies: Regulatory changes, such as a 5% VAT on home sales after three years of project completion, play a role in shaping the market and investment choices.
- Global Economic Trends: While Dubai’s real estate market is resilient, fluctuations in oil prices and global investment flows can also impact property values.
Market Trends and Investment Insights
Dubai’s real estate sector remains strong, with sales transactions in 2024 reaching AED 147 billion in the third quarter, reflecting sustained demand and confidence. Investors should consider economic factors and market trends when making investment decisions.
Global Property Price Comparison
Understanding how Dubai’s property prices compare with other global cities can help investors make informed decisions. The following table outlines average property price per square foot for 1-2 bedroom apartments in major cities worldwide:
| Downtown Area |
Average Price Per Sq. Ft. |
| Central District, Hong Kong |
AED 9,002 ($2,453) |
| Zurich, Switzerland |
AED 8,052 ($2,194) |
| Marina Bay, Singapore |
AED 7,549 ($2,057) |
| City of London, UK |
AED 6,943 ($1,892) |
| Gangnam, Seoul, South Korea |
AED 6,818 ($1,858) |
| City Center, Tel Aviv, Israel |
AED 6,356 ($1,732) |
| Manhattan, New York, USA |
AED 6,121 ($1,668) |
| Chaoyang District, Beijing, China |
AED 4,987 ($1,359) |
| Sydney, Asutralia |
AED 4,492 ($1,224) |
| Paris, France |
AED 4,345 ($1,184) |
| San Francisco, USA |
AED 3,890 ($1,060) |
| Luxembourg City, Luxembourg |
AED 3,827 ($1,043) |
| Minato, Tokyo, Japan |
AED 3,523 ($960) |
| Amsterdam, Netherlands |
AED 3,369 ($918) |
| Downtown Toronto, Canada |
AED 3,144 ($856) |
| Downtown Dubai, UAE |
AED 2,077 ($566) |
Investment Opportunities
For investors, Dubai presents an opportunity to invest in a growing global hub at relatively lower prices than other major cities.
By understanding the factors driving Dubai’s property market and comparing global price trends, investors can gain valuable insights. With continued development, Dubai remains an attractive destination for real estate investment. To learn more about investment opportunities in Dubai’s growing economy, explore fäm Properties and stay updated on key economic indicators. Click the button below to begin exploring opportunities tailored to you and connect with one of our property consultants.
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