More than half of the tourists in the UAE come to the emirate of Dubai, which is the country's main tourist destination. But besides recreation and entertainment, there are many reasons to come here to invest in real estate.
Prestigious status, infrastructure development, and high-quality construction in Dubai are not at all compatible with the concept of cheap real estate. Nevertheless, apartments and villas are quite affordable in the Emirates compared to similar facilities in other metropolitan areas. You can easily buy flats for sale in Arjan or any other area at affordable prices.
What is the affordable housing sector?
There are many offers of studios and apartments in the Dubai real estate market in the price range of up to $135,000. These are apartments with an area of up to 70 square meters, high-quality finishes, built-in kitchens, and without furniture.
Such lots are found both in the primary and secondary markets. Demand in the budget segment is traditionally high: objects are purchased for living and investment. This is a great option for a novice investor who wants to assess the situation on the market and decide in which direction to move on.
Such objects instantly find buyers, especially regarding a good view from the window and convenient transport location. Compared to European cities in Dubai, prices for apartments with high-quality finishes and well-developed complex infrastructure are 20-30 percent lower. When purchasing an off-plan object, the benefit is even more obvious.
It should be noted that in the luxury real estate segment, prices in Dubai are lower than in other major cities of the world. If we compare it with other cities, then the cost of villas of approximately the same level in these two cities will be the same.
Pricing policy for real estate in Dubai
Why are apartments in Dubai cheap? Several reasons are associated with the course chosen by the authorities:
Loyal tax policy. This is one of the most important factors that help keep house prices down and answers why Dubai has affordable real estate. There is no personal income tax, capital gains, or other fees in the emirate, attracting thousands of foreign investors and expats. A loyal tax policy has led to the fact that the cost of living in Dubai has become lower than in major European cities.
Too many offers. The construction of new residential complexes is being carried out at an accelerated pace. Developers with each new project are trying to surpass each other, and investors are always pursuing new, more profitable objects. However, despite the popularity of the UAE among foreigners, demand is quite limited. Many of them prefer to live in rented apartments. As a result, a bubble is formed, in which some objects cannot find buyers. The only way out for the developer is to lower the price. This largely answers the question of why Dubai has cheap real estate.
