Property Prices in Dubai

The effect of a Payment Plan on Property Prices in Dubai

When investing in off-plan property, you basically have two options that influence the property prices in Dubai. One is to pay in full upfront at an attractive discount or option two it to pay via a payment plan. Developers do not charge interest when you pay via a payment plan, but the price will be slightly higher to compensate for this advantage. Ultimately, the developer has to find financing for the property somewhere. So the general rule of thumb is:

The longer the payment term, the higher the property price.  

More about Payment plans in relation to property prices in Dubai.

What are the Prices?

Let’s start by looking at B-locations – not the tourist hotspots. But emerging areas where many residents live and there are good growth opportunities. Think of: Dubai Land, Studio City and partly still Jumeirah Village Circle and its surrounding communities.

• Studios: A studio without a payment plan starts at $138,000. If you opt for a five-year payment plan, the price starts at around $185,000.
• 1-bedroom apartment: A 1-bedroom starts at around $220,000 without a payment plan. With a five-year payment plan, you quickly end up with starting prices of $275,000.
• 2-bedroom apartment: Prices start at $348,000 if you get in early. With a five-year payment plan, this type quickly starts at around $400,000.

When comparing property prices in Dubai, it is important to consider the square footage, view and floor of the unit. These factors significantly affect both the sale price and rental yield. For example, a 1-bedroom apartment may be 50 m² with one developer and 85 m² with another. This makes a big difference in value and yield.

Prices at A-Locations

In A-locations such as Business Bay, Dubai Marina, and The Palm Jumeirah, prices are much higher. This is due to the high demand and popularity of these areas.

• Studio: Prices for a studio vary between $320,000 and $475,000.
• 1-bedroom apartment: For a 1-bedroom apartment it is difficult to find below $475,000. With a payment plan you can quickly get above $580,000.
• 2-bedroom apartment: For a 2-bedroom the price is between $635,000 and $900,000.

Conclusion Property Prices in Dubai

The more you pay up front, the better the property price in Dubai. This translates into a higher return and capital growth. Although a full payment up front is not feasible for everyone, a payment plan also offers great opportunities. For example, with off-plan properties you can expect an annual increase in value of around 10% during the construction period. To maximise your return, it is important to pay attention to factors. Such as the number of square meters, the floor and the view. Characteristics that directly influence the resale value and rental price.

In short, off-plan property in Dubai offers opportunities for every investor. Whether you choose to pay in full or use a payment plan. Make smart choices and benefit from Dubai’s growing real estate market! Ready for the next step? Read more about the Buying Process or send us a Whatsapp message to receive more information about projects.