The booming property market means residents will have to look carefully before considering a purchase
With the Dubai real estate market booming, some residents have felt the pinch as property prices skyrocket beyond easy reach.
However, while some property could take upwards of a century to own with an average salary, other areas still have affordable options, according to a study by Dubai proptech Realiste.
Dubai homes which could be affordable in one’s lifetime
The Realiste study, based on extensive data related to 20 major locations in the emirate, said owning houses can be within the reach of residents’ lifetime even in some of the sought-after areas in the emirate such as Al Sufouh First part 2, Al Jaddaf Part 1, Nad Al Sheba, Al Hebiah Fourth part 6 or even in Palm Jumeirah.
The average work years to buy a house in these areas could take 34.5 to 61 years based on the current average salary.
Al Sufouh Second Part 1, the Dubai neighbourhood offering beautiful bay views and complete commercial opulence, and Al Sufouh Second Part 2, offering an attractive lifestyle in a serene environment, carrying average price tags of $4.32 million and $4.30 million, respectively, can take up to 61 years each of the residents’ work life to own a house.
Nad Al Sheba, close to the heart of Dubai and carrying an average residential price of $3.27 million, can take up to 46 years of work life, while that in Al Jaddaf Part 1, with an average unit price of $2.77 million, can take 39 years, Al Sufouh First Part 2, offering shining bay views, can take 36 years at average unit price of $2.55 million, and 35.5 years in Al Hebiah area, flaunting an average price of $2.52 million.
In Palm Jumeirah, the tree leaf-shaped island, it can take up to 34.5 years of work life of a Dubai resident to own a house, currently priced at an average of $2.45 million.
Bluewaters Island ($1.99 million) and Al Hebiah Fourth Part 2 ($1.78 million) are among the other Dubai areas which could be within the residents’ reach in 28 or 25 years of their work life.
City localities within easy reach for residents
The Realiste study said houses in Al Manara, located in the western emirate, are the easiest to acquire for Dubai residents – in just 3 years of work – as the average price goes for a relatively affordable $219,848.
The Greens ($469,644), offering a great abundance of greenery and lakes to enjoy, Dubai Design District ($786,824), an area with an amalgamation of modern architecture, regional and international shopping brands, and Downtown Dubai, riddled with the iconic tourist attractions of the emirate including Burj Khalifa and the Dubai Aquarium, are the other areas where city residents can hope to own a house early in their lifetimes.
Dubai’s luxury property prices and work years
However, in some areas it could take a very long time to own a house. Jumeirah Bay Part 1 or Al Hebiah Fourth Part 5 boasted some of the highest times to purchase, coming in at 114 years and 87 years of work, respectively. This is compared to purchasing a house in Al Manara in western Dubai in just three years of work, based on the prevailing average salaries and residential unit prices, the study found.
The average price of residential units in Jumeirah Bay Part 1, one of the most luxurious parts of the emirate, is estimated at an astounding $8.10 million, while that in Al Hebiah Fourth Part 5, known for its high rental income and golf fields, at around $6.1 million.
Interestingly, Dubai residents can afford to own a house in the fabled and beautiful Dubai Marina, brimmed with breathtaking waterfront views, in approximately 11 years of work on average, with the average unit price in the area estimated at relatively cheaper at $748,646.
“Boasting a price tag of $8.10 million, it would take, on average, almost 114 years for a resident to own a house in Jumeirah Bay Part 1, considering the prevailing average Dubai salary. So it’s safe to say you can’t buy your way into here on an average salary, while the average unit price in Al Hebiah Fourth Part 5 would mean it would take close to 87 years of work to buy an apartment here,” Alex Galt, founder of Realiste, told Arabian Business.
“The quest for homeownership stands as a common ambition, but the journey towards this dream takes diverse routes in different areas in Dubai,” Galt said.
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