Top Factors That Affect Property Prices in Dubai Real Estate

The property market of a place doesn’t rely on a single thing. Above that, after the pandemic, the current state of a country’s economy also affects it a lot. But hence, we are talking about Dubai’s real estate market and property prices in Dubai; undoubtedly, Dubai is the best place to invest. 

But before investing, there are a few things you should know about the real estate market. So, let’s begin our guide on “the top factors that affect the property price in Dubai real estate.” 

Economic Condition 

The country’s economic position affects a lot in the real estate market. And most of the time, it is pretty predictable to say the current real estate market by knowing the country’s economy. A nation with healthy economic growth will genuinely set the bar high. For example, if the people of that country are earning a lot of money they can afford a high-cost living. 

Hence, the financial condition directly affects the property market of any place. And as for Dubai, since the economy of Dubai is in bloom, the property market is also blooming. 

Unemployment 

A country with a strong unemployment rate will always face a falling property market. And the reasons are crystal clear. If you are unemployed, your future is also vague. There’s no chance that you can afford to pay a certain price to get the property. Hence, unemployment is the most critical issue to make the price drop in any real estate market. 

However, since we are talking about Dubai’s property market, Dubai has the least unemployment rate in the world. Therefore, the residents of Dubai, along with the ex-pats, have a good source of income to afford properties. That is the reason why properties in Dubai are in high demand. 

Location 

Yes, locations matter! The location of the particular property you purchase affects much of the price. For instance, a place with nearby hospital facilities, schools, shopping malls, cafes, or restaurants is likely to get more hype. Above that, suppose your office is just a few minutes away from your home. In that case, you’ll likely pay more even if it crosses your budget limit.  

Hence, priorities also matter when purchasing a house, which clearly affects the property price. On top of that, an undeveloped area with an average crime rate will decrease the cost of that area. However, don’t worry, Dubai has a shallow crime rate, and most places are privileged with needed amenities. 

Demand 

The demand for a property is the key to its price. If that particular place or area is in high order, the price will also rise to the sky. Hence making it clear that property prices in Dubai depend on demand. For example, the property market in Dubai’s Downtown Dubai is increasing day by day because investors are highly interested. 

Similarly, a place with low demand will also decrease its price value. And if for some reason, there’s no buyer in the market, the price will automatically fall no matter where the place is. 

Flexibility of Funds 

Most people buy houses by lending money from a good source, such as banks or insurance companies. Moreover, many people get loans from banks before purchasing a home, especially in Dubai. Hence, if the process of lending money is more straightforward & secure more people will show interest in buying houses. 

On the other hand, if that similar lending source creates some problems while lending money, people will get annoyed. Therefore, it results in fewer chances of purchasing a house which will immediately affect the current property market. 

The Value of The House 

Suppose you are looking for a sweet home; the first thing you’ll check is a house in good condition. And most importantly, a well-constructed house will affect its value directly. Hence, a home that is good in condition and recently built will likely make the table turn. 

Therefore, it is evident that the property price also rises if the house has the charm that adds to its value. 

Conclusion 

The property prices in Dubai depend on many small and significant factors that you can not ignore if you are in the real estate market. Hence, we always suggest you remain close to the market trend and don’t forget to research on your own. And we hope our guide on “ top factors that affect the property market of Dubai real estate” will help you.