The real estate market in Dubai is steadily witnessing a major shift towards affordable housing and rising demand in this market segment as per reports. The real estate sector outstripped several other economic sectors and industries in Dubai last year with overall transaction values touching around Dh285 billion with growth of 6% reported by several studies and reports. This was an increase from the Dh268.7 billion in transactions in the year 2016 as per reports.
The total values of sales of buildings, housing units and land in Dubai touched Dh114 billion in 2017 via 49, 000 transactions. Mortgages in these segments also touched Dh138.5 billion via 15, 700 transactions. There was a growth of 14% in the total number of property and land transactions. Approximately 69, 000 such transactions took place. This clearly indicates, as per experts, that the property transactions are more affordable than before. Customers are buying smaller units at more affordable prices.
Affordability is a term that cannot be pinned down to one single threshold in a city like Dubai. Prices of affordable homes in Dubai will be vastly different from those in other areas. Affordable homes are usually those with prices lower than Dh400, 000. Prices of studio apartments have now touched these affordable levels. Affordably priced 1-bedroom units are priced between Dh600, 000 and Dh850, 000 as per studies.
Two bedroom townhomes are usually priced upwards of Dh1 million and three bedroom units come for anywhere upwards of Dh1.3 million as per reports. The prices of affordable homes also change depending on the location. Southern Dubai has lower prices as compared to units in Business Bay and other prime locations. Several affordable home projects have come up in areas like Al Ghusais, Karama, Abu Hail and Deira among other areas.
There have been several regulatory reforms and a thrust on infrastructure development courtesy the Dubai Government and this has directly boosted the affordable housing segment in the Emirate. Developers are steadily shifting focus towards offering affordable homes for buyers. Real estate developers are also figuring out ways and means to lower property acquisition costs. This is possible through impeccable project planning and thorough selection of development materials along with intelligent size reduction and value engineering. Dubai is poised to witness skyrocketing demand for affordable housing over the next few years as per market experts and this is one trend that will shape its real estate market immensely.