Investing in middle-income properties in Dubai is a good option in terms of stable returns and potential long-term value appreciation. With the government’s drive to boost the real estate sector and implement new infrastructure projects, the sector is expected to witness sustainable growth in the coming years, according to a report by Harbor Real Estate. The report explained that the most prominent reasons for investing in this sector are the high sustainable demand, stable rental returns, ease of resale and value increase, diversity of target segments, in addition to stability in times of economic volatility.
The Harbor report indicated that despite the high competitiveness in the market, choosing good locations with integrated infrastructure contributes to enhancing the attractiveness of investment in this sector. If you are thinking of entering this market, it is useful to study areas with high potential for growth and future demand, focusing on factors that increase the attractiveness of the property such as proximity to metro stations, public facilities, and schools.
According to Harbor’s classification of residential properties targeting middle-income earners, with values ranging between AED 750,000 and AED 3 million, these products accounted for the lion’s share of more than 60% of real estate transactions in Dubai during the first 10 months of the current year 2024, with 83,907 transactions out of 137,999 transactions.
Internal data from Harbor Real Estate revealed that prices of middle-income areas witnessed an increase of between 12% and 40% during the period extending from the beginning of 2024 until the end of the third quarter, compared to the same period last year 2023, which reflects the high demand for this type of real estate products in Dubai.
Fair purchase prices for mid-income properties range between AED 1,000 and AED 1,800 per square foot, depending on several factors such as location, property type, views, amenities, payment plan, etc. In terms of total property value, the report stated that prices for these products range between AED 750,000 and AED 1.6 million for apartments. Townhouses and villas range between AED 1.9 million and AED 3 million. “Dubai’s real estate market offers a variety of options that cater to a wide range of residents and investors. This diversity in size, price, and area is one of the most important factors that has attracted the interest of international and local investors alike,” said real estate expert Muhannad Al Wadi, CEO of Harbor Real Estate.