Dubai Buyers Flock to Outskirts for Larger, Affordable Homes

dubai realestate

New property units in Dubai are approximately 12.5 per cent smaller than older ones, despite prices going up substantially higher in the post-pandemic period. This has prompted many property buyers and investors to move to affordable and outskirts areas to lay hand on larger properties at lower rates.

Demand for bigger units increased substantially after the coronavirus pandemic as residents were restricted indoor due to the safety and precautionary measures taken by the authorities during the pandemic. But the unprecedented demand for Dubai property in the post-pandemic growth in the real estate market has pushed prices and rentals to record highs.

Moving to affordable, larger properties

The unprecedented demand for property has resulted in prices for plots also going up substantially, prompting some of the developers to reduce the sizes of the apartments to accommodate more units in their projects.

As sale prices soar in established Dubai communities, Espace Real Estate analysts said people are increasingly opting for more affordable areas where they can find similar or even larger properties at lower price points.

They continued that the hike in rental prices and more accessible mortgage products are pushing many residents toward home ownership. In April 2024, property prices continued climbing to all-time highs and
stood at Dh1,351 per sqft, which is 72.1 per cent higher than April 2009 and 9.5 per cent above the market peak of September 2014.

On a year-on-year basis, prices have increased by 20.1 per cent in April and now marks 38 straight months of year-on-year increases, while on a year-to-date basis, prices have increased by 5.23 per cent in April 2024 compared to 2.67 per cent in April 2023.

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