Dubai is one of the fast-growing real estate markets in the world and is a global hub for business, tourism, and innovation. It attracts a wide range of investors, residents and tourists from around the globe. Hence, Dubai’s properties have been an excellent choice for investments. For this reason, the cost of an apartment in Dubai varies significantly depending on the area, with different districts focusing on different lifestyle options, from luxurious high-rises to more affordable urban living. This article will provide an overview of the average price per square foot in various popular areas of Dubai neighborhoods.
Here’s a breakdown of apartment costs in Dubai based on different factors:
- Location
The price of an apartment depends significantly on the neighborhood in which it’s located. Prime areas such as Downtown Dubai, Dubai Marina, and Palm Jumeirah tend to have much higher prices, while emerging areas like Dubai Silicon Oasis, Jumeirah Village Circle, Dubai South offer more affordable options.
- Apartment Size
The size of the apartment is another critical factor. Generally, the larger the apartment (measured in square feet), the higher the overall price.
- Luxury vs. Budget
In areas like Palm Jumeirah, Downtown Dubai, and Dubai Marina, you can expect high-end luxury apartments depending on the views and amenities.
Approximate Cost per Square Foot by Area:
| Area | Price per Square Foot (AED) |
| Downtown Dubai | AED 2,000 – AED 3,500 |
| Dubai Marina | AED 1,200 – AED 2,100 |
| Palm Jumeirah | AED 2,200 – AED 7,000 |
| Business Bay | AED 1,200 – AED 3,000 |
| JumeirahVillage Circle (JVC) | AED 850 – AED 1,200 |
| Dubai South | AED 750 – AED 1,400 |
| Dubai Silicon Oasis | AED 800 – AED 1,200 |
| JLT | AED 1,200– AED 2,800 |
The Upfront Costs in buying a ready-to-move apartment in Dubai
When buying a ready apartment in Dubai, there are several upfront costs beyond the purchase price of the property. These costs can add up, and it’s important to budget for them in addition to the price of the apartment itself.
Below is a breakdown of the upfront costs you can expect when purchasing a ready apartment in Dubai:
1. Down Payment
Percentage: Typically 20% of the property’s value.
This is the portion you need to pay upfront when securing a mortgage. If you are a UAE resident, the minimum down payment is usually 20% and for foreign investors, it is 25%.
2. Dubai Land Department (DLD) Transfer Fees
Cost: 4% of the property purchase price.
3. Registration Fees
A fixed administrative fee of around AED 580 – AED 700.
This is the fee charged by the Dubai Land Department for registering the property under your name.
4. Real Estate Agent’s Commission
Cost: Typically 2% of the purchase price.5.
5. Mortgage Registration Fee (If Financing)
Cost: 0.25% – 1% of the loan amount.
6. Valuation Fees (For Mortgage)
AED 2,500 – AED 3,500 (varies by lender) + 5% VAT
The bank typically requires an independent property valuation before approving a mortgage loan.
7. Service Charges
Cost: AED 10 – AED 30 per square foot per year.
Service charges cover maintenance of common areas like lobbies, gardens, gyms, pools, security, etc.
Example Breakdown:
For a Property Worth AED 1,000,000:
| Cost Category | Amount (AED) |
| Down Payment (20%) | AED 200,000 |
| Dubai Land Department Fees (4%) | AED 40,000 |
| Title Deed Issuance Fee | AED 580 |
| Real Estate Agent Fees (2%) | AED 20,000 |
| Property Registration Fee | AED 2,500 |
| NOC (No Objection Certificate) | AED 2,000 |
| Valuation/Appraisal Fee | AED 2,500 |
| Mortgage Processing Fee | AED 2,500 |
| Service Charges (Annual) | AED 10,000 |
The Upfront costs of buying an Off-plan property
Off-plan properties are those that are still under construction or in the pre-construction phase, so buyers need to pay for the property in installments to the developer. When buying an off-plan property in Dubai, the upfront costs are going to have a significant difference.
- Down Payment
Percentage: 5% to 20% of the property’s value.
- Dubai Land Department (DLD) Transfer Fees
Cost: 4% of the property purchase price.
The DLD fees must be paid in one month.
- Payment Plan
In Dubai, many developers offer flexible payment plans for off-plan properties to attract buyers. These payment plans allow buyers to pay for their property in installments over time, rather than a lump sum upfront.
- Pay During Construction (Installment-Based Payment Plan)
- Post-Handover Payment Plans
- 90/10 or 80/20 Payment Plan
- No Interest or Zero Interest Payment Plans
- Flexible or Customized Payment Plans
The flexible payment plans put forward by the developers help many buyers with lower initial payments. Also buyers get more investment potential with some post handover payment plans, buyers can start earning rental income before completing the payment which increases potential capital gains.
Below are some of the recent launches by developers which offers very attractive payment plans:
In conclusion, the cost of an apartment in Dubai varies significantly depending on factors such as location, size, amenities, and the type of property. Luxury and prime locations, such as Downtown Dubai or Palm Jumeirah, tend to have higher prices, while areas like JVC and Business Bay offer a wider range of options for different budgets. Furthermore, the real estate market is influenced by economic conditions, including supply and demand trends. Overall, while Dubai offers diverse choices for potential buyers and renters, it remains a premium market for buyers especially for high-end properties.
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