Revealed! What property types, districts and price ranges are most preferred by buyers in Dubai?
Dubai holds a special place in the real estate world. The political and economic stability of the UAE, along with Dubai’s modernity and openness to expatriates, attracts investors and residents from around the globe. But what types of apartments do investors and Dubai residents prefer to buy? Colife Invest experts have delved into the city’s key areas where apartments are being purchased and shared insights on property prices.
“The most popular properties in the Dubai market are 1-bedroom apartments (the total number of transactions for the year 2023: 43% ready, 47% off-plan). Among those purchased with us, 64% are 1-bedroom units. Looking at the overall sales statistics, the second most popular are 2-bedroom apartments (28% ready, 25% off-plan), but these are usually bought for personal residence. Speaking of investments, studios take second place (15% ready, 18% off-plan). According to our data, 22% of investors prefer studios. They are easier to rent out compared to two-bedroom units,”
shared Ilnara Muzafyarova, CEO of the rental company with included service Colife.
From the beginning of 2022 until the fall of 2023, we assisted clients in purchasing 73 apartments in Dubai. According to our statistics, on average a studio in Dubai could be purchased for $183,000, and a 1-bedroom for $332,700. 2-bedroom units constitute 10% of all purchases with us, while 3+ bedroom units make 4%. On average, our clients acquired these apartments for $505,200 and $503,200.
Colife Invest clients spent on average $476,713 on purchasing an apartment in Dubai during this period. The minimum transaction amount with us was $104,100 for a studio, and the maximum was $849,300 for a 2-bedroom.
Now our select managers advise clients to consider 85 carefully selected and in-demand properties in the Dubai market, both ready and off-plan. Among them, 67% are 1-bedroom, 22% are studios, 9% are 2-bedroom, and only 1% are 3-bedroom or larger. On average, a studio in Dubai can now be acquired for $233,900.
“We analyze hundreds of options on both open and off-market every week. We pinpoint the most undervalued and in-demand properties. Our strength lies in the ability to find apartments that owners need to sell quickly. That’s why they are open to good negotiations,”
Olga Kalyuzhnaya, an analyst and broker at Colife Invest shared how our team manages to find apartments for clients at prices more advantageous than the market average.
For example, in February 2023, we helped an investor purchase a 1-bedroom apartment in Princess Tower for $265,200. The current value of this apartment has already reached $408,000.
In less than a year, the property’s value has grown by 54%. We achieved these figures because Colife’s select managers found an owner who urgently wanted to sell the property. Our client had only 2 hours to decide: we quickly visited the property within the owner’s specified hour for a viewing and sent to investor video from the apartment. The decision was made swiftly. As a result, we acquired the property well below market value, thanks to our continuous monitoring of favorable offers and client’s quick response.
Furthermore, this investment provides the owner with a 6.1% ROI. The Colife team currently rents out this apartment for $3,400 per month, while the average local rent over the entire period was $2,200.
Prices for apartments in Dubai are not just rising monthly but daily. The city is flourishing, and the real estate market is rapidly evolving, witnessing a surge in transactions and escalating prices.
“Dubai’s favorable investment climate, transaction transparency, security, stability, and prospects attract investors from around the world. The peak of growth occurred in 2021–2022. There is a high probability that the positive trend will persist, albeit at a slightly slower pace. Instead of the projected 15% increase in 2023, experts anticipate a growth rate of 5–7%.
While some fear a real estate bubble that may burst, the annual UBS Global Real Estate Bubble Index, a widely recognized international indicator, ranks Dubai with one of the lowest bubble indices globally: Dubai — 0.14 vs. Hong Kong — 1.24, London — 0.98,"
shared Ilnara Muzafyarova.
Considering the sustained growth, it is advisable to invest in property now. This not only allows for passive income through rentals but also offers significant potential gains from future price increases upon resale in a few years.
Moreover, properties managed by Colife are outperforming the market significantly. For instance, the average secondary market growth in the JLT area in 2023 is projected at 4%, while our properties have demonstrated a growth of more than 20% in just nine months.
“We take location, tower selection, and unit choice seriously, actively tracking special offers with reduced prices to secure the most advantageous deals,”
noted Ilnara.
Regarding popular areas among buyers, Jumeirah Village Circle (JVC), Dubai Marina, Business Bay, Jumeirah Lake Towers (JLT), Dubai Creek, and Dubai Hills are the most sought-after. This applies to both primary and secondary real estate.
According to our data, the top areas for purchasing income-generating and not only real estate are Dubai Marina and JLT. They are highly popular among buyers because of their established infrastructure, finished construction and metro accessibility.
“Dubai Marina is more expensive, because it stands out as an area with unparalleled infrastructure, abundant public transportation, numerous restaurants, amusements, and proximity to the sea. JLT is located just behind Marina, connected to it by Sheikh Zayed Road, featuring a covered overhead pedestrian bridge. JLT is loved for its infrastructure, free zone DMCC and accordingly lots of offices, expansive green parks, direct access to the lakes from each building, and the convenience of easily crossing the road to reach the most attractive Dubai Marina.
Apartments in JLT are more budget-friendly. For instance, with 1,000,000 AED, you can purchase a studio in Marina or a one-bedroom unit in JLT,”
shared Olga Kalyuzhnaya.
Dubai’s real estate allure remains unwavering, drawing investors and residents with its blend of stability and modernity. Colife Invest insights shed light on prevailing trends, with 1-bedroom units dominating transactions, studios leading in investments, and prime areas like Dubai Marina and JLT standing as favorites.
Written by Colife PR department
