There are different feelings and emotions associated with the process of moving to a property in Dubai. Some are sad because they have to abandon a house in which they have created memories. On the other hand, some people are excited as they are moving to a bigger or better home. It all depends on the circumstances.
However, the feeling of being anxious remains constant irrespective of the reason for moving to a new home. This is majorly due to the fact that the process to buy or rent a new residential property in Dubai is quite daunting. The biggest challenge is to find the one in your budget range. This is no less than a feat as property prices in the emirate come with a heavy price tag. For example, the prices of studio apartments for rent in Dubai have increased significantly during the last year.
Having said that, you can make a tactful decision if you know about the main factors that impact property prices in Dubai. Knowing about them can help you find the right property within your budget range.
Let’s take a look at some of these important factors:
1. Property Type
Many people already know this, but it’s still worth mentioning that the type of property plays a major role in determining its price. Needless to say, if you’re looking for a villa, be prepared to break the bank or pay recurring instalments for a long period of time every month, unless or until you’re not super loaded and already own many properties in the emirate.
Smaller living spaces, such as studios and apartments, are comparatively affordable due to their size. However, there are some residential developments where the prices of apartments are at par with those of villas. The element of luxury comes into the picture here. So, there can be some exceptions.
Apart from apartments and villas, there are other property types available in Dubai, such as townhouses, duplexes and penthouses. These are also expensive properties. But, if you compare all of them, villas tend to have the highest value.
2. Location
After the property type, it’s the location that impacts the price and value of a property. Those properties that are located in prominent communities, such as JLT, JVC, Palm Jumeirah, Ranches, Dubai Marina, Downtown Dubai, etc. are priced higher. Even smaller properties here can cost a lot.
On the other hand, communities that are located away from the city centre have comparatively inexpensive properties. You may find a villa in The Springs at inexpensive rates as compared to Dubai Marina or Jumeirah Village Circle.
Having said that, there are some communities that are located at a distance from the city centre, but they are well-connected to the rest of the emirate due to their proximity to main highways. Although a few commutation hassles will be there, they, however, make for suitable options if you’re looking for inexpensive options.
3. Condition
The condition of the property matters a lot when it comes to determining its price. This can be illustrated by the following example:
There’s a huge villa in a prominent community, but it’s not kept in mint condition. As a matter of fact, it requires major overhauling and repair work. A neighbouring villa, on the other hand, is smaller in size but features modern interiors and exteriors. Also, there’s no repair work required. Everything, right from the lawn to the bathrooms and the kitchen, is in the best state. The price of the latter housing unit will be higher than the former.
4. Age of Property
Properties part of the latest residential developments have a higher price because of their quality of finishing and modern architectural values. On the contrary, aged properties are available at inexpensive rates. However, you’ll need to get them overhauled before settling in them. This will increase the moving cost.
Also, if the location isn’t suitable, it won’t be worth it to go through all this hassle of buying an old property and getting it repaired since the resale value won’t be higher.
5. Available Facilities
Not many pay attention to this, but the facilities and amenities a property comes with also greatly impact its price. For example, a lot of people prefer villas and townhouses because they offer enhanced exclusivity over amenities and better privacy. These factors lead to an increase in their demand, which, in turn, affects the price.
Latest apartment projects also come with modern amenities and facilities, such as a temperature-controlled swimming pool, kids’ pool, kids’ play area, indoor and outdoor play areas, spa and sauna rooms, fitness centres for men and women, private theatre rooms, etc. The availability of these luxuries surges property prices. The reason? They impact the lifestyle.
In a nutshell, the aforementioned factors collectively impact property prices in Dubai. So, if you’re planning to buy one, it’s important to take into account all of them. This will help you make an informed decision.
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