The United Arab Emirates has been chosen by a large number of investors around the world as a safe place to invest, especially in real estate. Dubai, the most populous city of the UAE, is the leader in attracting a high rate of the investments in real estate market followed by the capital city Abu Dhabi. It is worth noting that all seven Emirates in the UAE have been open to property and construction investments by local and international investors alike.Thus, many investors in property and real estate always search for property prices in Dubai and other Emirates. General comparison property prices in Dubai. In the following, we provide a comprehensive comparison of Dubai property prices compared to other major Emirates in the UAE.
Dubai real estate market and prices
Dubai is the largest city in the UAE and is the most popular among international property investors. 85% of property investors in Dubai are expatriates. According to the data from the Dubai Land Department, there has been an increase in the volume of construction in Dubai during recent years, starting from 15,440 units in 2020 to 30,019 units in 2023.
The real estate market in Dubai offers a wide range of luxury residential and commercial properties to add to the glory of the city. Landmarks such as Burj Khalifa and Palm Jumeirah attract more and more investors in the real estate market. Besides, the dynamic economy, tourism attraction and lively lifestyle of Dubai make it a more appealing choice for investors who seek either rental yields or capital improvement.
On the other hand, the Dubai government has progressive plans to further develop the city. The plans suggest that by 2040 the population of the city will double which requires a sharp increase in the land area of tourism and commercial sectors. There will also be an increase in land area for healthcare and education as well as beaches and green areas. Thus, Dubai is going to be an appealing choice for real estate investment in the near future.
However, property prices in Dubai are cheaper by 20 to 80% compared to major cities such as New York and London. The attractive prices, as a result, have driven a large flow of foreign investment since 2020.
Abu Dhabi
Abu Dhabi, the capital city of the UAE, also boasts a great real estate market in the country. The market attracts both local and international investors. The city offers stability, wide range of opportunities for investment and strong rental yields.
Abu Dhabi’s economy seems to be more or less dependent on oil. Thus, the emirate tries its best to overcome the dependency on oil and develop other sectors including real estate. Abu Dhabi also has a plan to further develop urban expansion, construction, transportation as well as tourism. Besides, as the capital city, Abu Dhabi provides safer and less fluctuating prices of property makes it a great choice to consider.
According to official reports, the average price of a flat in Abu Dhabi was around 3,000 US dollars in 2022 while a villa could cost 2,500 US dollars per square meter. The prices were reported to rise by 1.5% on average in 2023.
Sharjah
Sharjah is known for its affordability and cultural heritage in the UAE which makes it an affordable alternative to Dubai and Abu Dhabi. It offers a more affordable real estate market focusing on villas, townhouses, and more.
Sharjah does its best to prioritize cultural heritage and conserve traditional lifestyle which makes it the best choice for those who look for the atmosphere and community living. The emirate provides a great balance between affordability, community living and keeping up cultural values.
Real estate transactions in Sharjah increased by 14.5% in 2023 thanks to policy changes and new projects launched. Yet the emirate has plans to set new records for the prime market. There are also reports that a large number of new tenants in Sharjah are the locals who moved from Dubai.
In January 2024, the real estate transactions in Sharjah reached 879 cases accounting for 16.3% of the total, mainly for townhouses and commercial properties.
Ajman
As an emerging emirate, Ajman presents unique investment opportunities including a growing real estate market with truly competitive prices and a wide range of affordable properties. The city is close to Dubai and several development projects such as Ajman Marina and City Center have attracted investors. Such a development in the emirate convinces investors who seek capital increase and long-term growth.
Ajman has shown positive trends in the majority of property sectors. Official reports show that the price of residential areas throughout Ajman experienced an increase in 2023, the highest observed in the most popular Ai Rashidiya by 28%. There has also been an increase in rental prices for both villas and apartments by 6% and 9%, respectively, in 2023. All the records suggest long-term growth and success in real estate market in Ajman.
The two other emirates in the UAE, namely Ras Al Khaimah and Fujairah, are also popular for their nature and tourism potential. Ras Al Khaimah offers extraordinary natural views, stunning mountains, and relaxing beaches. Providing luxury resorts, beachfront properties, and golf communities, the emirate has attracted both tourists and investors.
Fujairah is also recognized as an ecotourism destination on the east coast of the UAE. The real estate market in this emirate provides a mix of residential and hospitality properties to provide comfort and luxury to both residents and tourists. Fujairah seems the most appealing to investors who seek opportunities in a peaceful emirate with the potential for future tourism growth.
Investors need to consider that each emirate in the United Arab Emirates provides certain characteristics and advantages in the real estate market. Thus, it is essential to precisely evaluate each emirate’s market dynamics, potential returns, and investment goals in the real estate market to make the best decisions.
