Since 2003, Openshore have been monitoring the average price of investment properties (Studio and 1-bed apartment) to produce the Dubai Property Index. In the index (shown in the chart below) the pricing in 2003 is shown as 100 and all the prices are shown as relative to this. Red dots are actual. Yellow dots are future forecast.

In 2013 prices grew at a very fast rate on expectations of and following the Dubai 2020 Expo win. Many analysts forecasted a correction in 2014 which has indeed happened with a significant price drop in the first 6 months of 2014. Prices now are set to continue to grow at a more modest pace.

The Dubai property market grew every year from early 2003 until Sep 2008. However, from Oct 2008 to May 2009, over an 8 month period, the market fell by a massive 50% following the 'credit-crunch'. After 2009 for 2 to 3 years, prices on ready properties had been stable with only minor changes. Now prices have started to rise again and are expected to exceed the peak 2008 levels.

Overall Dubai economy is now booming (GDP 6% due to tourism, finance & immigration). The population of Dubai are expected to double over the next 7 years. Thus shortages of 'ready properties' are likely with forecast growth over 20% per year for next few years. This is shown as yellow dots on the index chart. Most people expect more growth than this for next 3 years. The smaller lower cost units will show highest % increase. When prices increase there will be incentive for developers to restart build. Prices are expected to DOUBLE in next 4 years.

From January 2003 to July 2007 - Dubai property market grows every year. Property prices increase more than 2.5 fold during this period with average annual increase of over 25%.

• From September 2007 to September 2008, over 12 months, property prices increased by over 40% due to intense speculation in the market
• From October 2008 to May 2009 - Prices fell by 50% over a short 8 month period, as the market corrected itself following the credit crunch. Many off-plan developments put on hold or cancelled.
• From June 2009 to July 2012 the market for ready built properties was fairly stable. Off-plan apartments continued to lose value as customers realised that these may be severely delayed or never built.
• From August 2012, prices slowly began to rise and accelerated in 2013.
• Over past 12 months prices are rising every month.

Nobody can be certain about the answer to this but most analysts believe that prices on 'ready' properties will continue to rise rapidly and exceed the 2008 peak levels before stabilizing and growing more slowly - see the yellow dots on the chart above.

The properties available for purchase in Dubai can be broadly categorised into 3 main type:- Apartments, Villas and Commercial.

 

These are the most popular properties sold and at any one point in time, there are likely to be about 15,000 to 18,000 such 'ready' units available for sale in the market. Most apartments are in high rise tower buildings typically over 20 to 40 stories high, especially in the Marina, JLT, JBR and Business Bay areas. Others are low rise buildings 3 to 6 floors high in areas such as Discovery Gardens, Greens and Al-Warsan.

The main apartment types can be summarised here.

Studio Apartments are approximately 400sq ft to 600 sq ft in size and include a small kitchen area, bathroom and large open area that can function as a living room and bedroom. These are suitable for a couple or single use and are very popular as investment properties. They are easy to rent out and resell and command a high net rental yield.

1-Bed Apartments are approximately 700sq ft to 1200 sq ft in size and include a kitchen area, bathroom, lounge and separate en-suite bedroom with its own bathroom. These are suitable for a couple and also popular as investment properties. They too are relatively easy to rent out and resell and command a high net rental yield.

2-Bed Apartments are approximately 1000sq ft to 1900 sq ft in size and include a kitchen area, bathroom, lounge and two separate en-suite bedrooms with their own bathroom. Some larger apartments may also include a maid's room or study. These are suitable for small families or as serviced apartments.

3/4/5 -Bed Apartments vary greatly in size but can be up to 5000 sq ft in size penthouse type. Many of these are luxury units and may include a study and maid's room as well. These are suitable for larger families.

 

Villas are normally purchased for own use and can vary greatly in size and costs. There are over 6000 ready villas for sale in the market at any one time.

Townhouse Villas are in a small terrace of usually 3 to 4 properties. A few are semi-detached. The villas can vary from small 1-bed units to large 5 bed properties. The end units have larger gardens and are slightly more expensive. They are found in areas such as Springs, Lakes, Jumeirah Village and Arabian Ranches

Detached Villas usually have a large plots and can vary from 2-bed units to large 6/7 bed luxury villas. Detached villas are available in Meadows, JVT, Jumeirah Park, Jumeirah Islands, the Palm, Emirates Hills, Arabian Ranches and Green Community.

Commercial property in Dubai consists of two main types.

Office Units are available in high rise towers in areas such as Business Bay, JLT, Marina and Tecom. Usually the unit is provided as a shell of 500 to 1000 sqft.

Retail Units are available in many locations including low cost shops in International City to expensive retail shops in the ground floor plaza's of the popular tower areas such as Marina and Downtown Burj.

 

 

Most of the areas in the old Dubai (Deira City, Bur Dubai City, old Jumeirah Areas and most other areas with Arabic sounding names beginning with "Al") are leasehold. In many of these areas, only the local Emirati citizens can purchase freehold property. Much of the property here is rented on short leases to non Emirati citizens.

The key freehold areas in which overseas buyers can purchase property are shown below:-

 

This is the prime holiday area near the beach and includes high rise towers with many types of apartments. There are three Dubai metro stations serving this area.

Dubai Marina consist of high rise towers encircling the Marina north of Sheikh Zayed Road. These are the most popular holiday apartments.

Jumeirah Lakes Towers (JLT) - consist of high rise towers encircling two large lakes south of Sheikh Zayed Road, opposite Dubai Marina. Property is lower cost than Dubai Marina.

Jumeirah Beech Residences (JBR) - These are high rise towers right on the beech north of the Marina. Property is more expensive than Dubai Marina.

Palm Jumeirah (The Palm) - This includes mid-rise towers called shoreline apartments along the trunk (the Golden Mile), mainly Villas (smaller Garden Home Villas and Large Signature Villas) on the fronds, and mainly large hotels including the Atlantis on the crescent. This is the only palm island that is ready and property is most expensive here (apart from that in Burj Khalifa itself).

Internet City, Media City, Tecom & Sheikh Zayed Road - Mainly mid and high rise apartments in these areas that are North East of Marina near start of the Palm

 

This is the main villas region south of the Marina Region. It was developed by Emaar and includes two golf courses.

Emirates Hills - The prime luxury villas area security gated. The "Beverly Hills" of Dubai. Large plots and massive villas around a golf course.

Meadows - Detached 3 to 7 bed Villas. Amongst the first freehold villas built in Dubai. Several gated communities

Lakes - Townhouse and detached villas

Springs - Mainly 2-bed or 3 bed Townhouse villas. Many gated communities.

Greens & Views - Greens consist of low rise apartment buildings whilst the Views are high rise Golf towers at the south end of the Greens, overlooking the Golf course.

 

These areas developed by Nakheel lie south west of the Emirates Living Region and include the following communities.

Jumeirah Islands - These are small man-made islands south of Jumeirah Lakes Towers with each island featuring up to 16 detached luxury villas with large pools.

Jumeirah Park - Large community of detached 3 to 5 bed villas, most of which are being completed now.

Jumeirah Village Triangle - Townhouse (1-bed and 2-bed) and detached two bed villas with large plots. This area is more developed than Jumeirah Village Circle (see below, parts of which are still under construction).

Discovery Gardens - Long strip of low rise apartment buildings near to Ibn Battuta Mall. Mostly Studio and 1-bed apartments. Has several sectors including Zen, Mediterranean, Contemporary & Mogul. For sale property is mainly in Mogul and Mediterranean sectors.

 

This area is nearer to the city towards the start of Sheikh Zayed road and lies south to it. The main feature of it is the Burj Khalifa, which is the world's tallest building and the Dubai Mall, which is the biggest Mall in UAE. It can be divided into several areas:-

Burj Khalifa Towers inc. Tall Tower - The most expensive property is in the Tall Tower of the Burj Khalifa.

Downtown Burj Area - This is the areas surrounding the Burj Khalifa

The Old Town - A part of the Downtown area near to Dubai Mall

Business Bay A large area consisting of many high rise towers (both office and residential) on both sides of a canal extension of the Creek.

DIFC - High rise tower buildings along Sheikh Zayed road near to the Dubai International Financial Centre. A Relatively expensive area

 

Emirates Road is the Motorway that lies well inland and runs the length of Dubai south of the Airport. It extends from the current Dubai Airport to the new World Central airport that will be ready within next 10 years. Many freehold areas (some being part of "Dubailand") lie along this road. They vary in the stage of development. Some like International City, Arabian Ranches and Green Community are well developed and mature areas, whereas others are still under construction. Openshore's Dubai property map clearly highlights these. These areas are listed in order going from the existing airport towards the new airport

Al-Warsan Area - One of the lowest cost, well developed freehold areas in Dubai. Low cost property suitable for investment. Mainly low rise studio and 1-bed apartments. Includes Int. City and Dragon Mart Mall. Phases 2 & 3 are on hold.

Dubai Silicon Oasis - Most of this area is reasonably well developed although many building are still under construction.

Liwan - Mainly under construction

Dubailand Residences - Mainly under construction

The Villa Project - Low cost large villas well south of Emirates Road. The lowest cost large villas in Dubai

Falcon City - Mainly under construction. Part of Dubailand.

City of Arabia - Mainly under construction. Part of Dubailand.

Legends and Marjan - Mainly under construction Part of Dubailand.

Al Barari - High end luxury villas.

Arabian Ranches - Fully developed community of townhouse and detached villas. Very popular villa area, but far from the main areas.

Motor City - Mainly under construction. Part of Dubailand

Arjan - Mainly under construction. Part of Dubailand

Sports City - Partly under construction. Some villas and apartments are ready.

Jumeirah Village Circle - Mainly under construction. Some villas and apartments are ready.

IMPZ - Mainly under construction

Jumeirah Golf Estates - Luxury Golf Villas. The World Tour, Race to Dubai & PGA Tournaments are held here. 2 Golf courses are ready and two more are planned. Partly under construction. Some Villas are ready.

Al Furjan Villas - South of Ibn Battuta Mall. Mainly under construction

Green Community - Divided into East and (new) West areas. Developed community of 4-bed, 5-bed and 6-bed detached villas. Low rise apartments also available.

 

See our Dubai Property Map for details of these areas which are mainly on hold and where large projects have been cancelled for the time-being.

Dubai World Central City . The airport is under construction but has been delayed.

• Dubai Investment Park
• Palm Jebel Ali
• Downtown Jebel Ali
• Waterfront City
• Palm Deira
• The World Islands
• Meydan & New Creek Areas

The Meydan racecourse and stand is ready but Meydan City is on hold.

 

For full details of all of the areas above, please get a copy of our detailed Dubai Property Map. This is available FREE to all customers who enquire from our website. Simply go to the home page and click any link to provide your details for us to send it to you.