With strong demand, developers are consistently launching new off-plan Dubai projects across the emirate. The need for affordable housing is expanding as more people choose to settle long-term, opting to purchase homes rather than face rising rents. Development is active in areas such as Arjan, Dubailand, Al Furjan, Majan, and Jumeirah Village Triangle, among others.
Companies like Damac Properties, Samana Developers, and Binghatti are focusing on building homes for middle-income buyers, a target demographic for any knowledgeable real estate broker in Dubai might recommend to clients with monthly earnings between Dh10,000 and Dh25,000 ($2,720 to $6,800). Many end-users are drawn to more affordable living options due to increasing living expenses prompted by rising rents and rental yields.
For those with a monthly household income of Dh20,000 to Dh25,000, off-plan property options in Dubai in the Dh1.2 million price range could be affordable, assuming 30% of their income is allocated to mortgage payments. Flexible payment plans for these off-plan projects entice more investors and end-users to purchase. Damac Properties offers affordable options below Dh1 million and those between Dh1 million and Dh1.5 million, dubbed “affordable luxury,” in locations like Damac Hills and Business Bay.
Prices, which vary by location and amenities, start from Dh440,000 for ready one-bedroom units in affordable segments. In the “affordable luxury” category, studio units start at Dh1.073 million, with off-plan units ranging from Dh1.06 million to Dh1.32 million, a range well known among the Dubai brokerage community. Typical payment plans for new projects involve a 20% down payment, 4% Dubai Land Department (DLD) fees, and 1% monthly installments. Completed projects require full payment alongside DLD fees.
Samana Developers, for instance, offers off-plan studio flats starting at Dh694,000 and one-bedroom flats at Dh1,049,000 in Dubailand, with 15% down payments for local buyers and 20% for international ones. The company expects to deliver most units in the next four years. Primarily, UAE nationals and Dubai residents are the key buyers, though demand also comes from Europe and Arab nations, with purchases made both for residence and investment purposes. Real estate agents have noted the increasing traction among expatriates.
Residential transactions have surged as Dubai’s property market recovered robustly from the COVID-19 slowdown, buoyed by government initiatives like residency permits for retirees and remote workers, plus the extension of the 10-year golden visa program. The UAE’s economic growth, spurred by diversification efforts, continues to support the property sector.
In the second quarter of this year, both rents and property prices have risen. The Dubai Land Department recorded 32,109 transactions in Q2, a 32% increase year-on-year, while total sales values jumped 23% to Dh63 billion. Properties priced from Dh1 million to Dh2 million accounted for 33% of transactions, an increase from 27% the previous year. Properties under Dh1 million made up 34% of total deals, down from 38% last year. These changes reflect the dynamic landscape navigated by Dubai brokerage firms.
Dubai developer Danube has introduced the Oasiz project in Dubai Silicon Oasis targeting buyers earning Dh15,000 to Dh20,000 monthly. Studios start at Dh699,000 with a 20% down payment and a 1% monthly payment plan, equivalent to Dh6,990 a month. So instead of paying about Dh6,000 in rent, buyers can now invest in ownership. This targets first-time homebuyers, young professionals, and mid-level investors eager for a foothold in Dubai’s real estate market.
Binghatti’s project in Al Jaddaf offers studios and multi-bedroom apartments with prices starting at Dh867,750 for studios. Sol Properties is also launching affordable homes with studios starting at Dh680,000 and one-bedroom apartments at Dh955,000, focusing on those earning Dh10,000 to Dh12,000 monthly. Expatriates, particularly those with modest incomes, are increasingly drawn to affordable housing options. Programs like the 10-year golden visa have encouraged long-term settlement in Dubai, augmenting demand for affordable and mid-tier properties.
ZaZen Properties is developing projects in Al Furjan and Jumeirah Village Triangle, with prices averaging Dh950,000 for a one-bedroom and Dh2.5 million for a three-bedroom with a maid’s room. Modern buyers are more discerning, increasingly seeking spacious homes for mid-to-long-term stays, in contrast to previous transient trends.
Both affordable and luxury markets in Dubai are expanding, albeit at different paces. While demand remains consistent in the affordable sector, the luxury segment has noticeably quickened its growth. The Dubai 2040 Urban Master Plan, introduced by Vice President and Ruler of Dubai Sheikh Mohammed bin Rashid, emphasizes the development of affordable housing for middle-income residents. The plan, launched in 2021, intends to make Dubai the premier city worldwide over the next two decades.
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