Dubai continues to rank among the most ‘cheapest’ locations to buy a luxury home. The majority of Dubai submarkets have house price-to-income ratios that are less than six times yearly salaries, according to a Knight Frank analysis titled “Dubai Residential Market Review Winter 2022–23.” Generally speaking, the affordability barrier is six times the annual household income, which is roughly the maximum mortgage amount most banks are willing to offer.
The ‘affordable’ price per square foot in most upscale neighborhoods, along with Dubai’s security, great weather, and unmatched sun-sea-sand lifestyle, is assisting the city in securing its iconic standing in the luxury real estate market, which in turn is boosting demand.
Why do we call Dubai an affordable luxury home destination?
According to a general rule, a home is deemed affordable when its price is less than six times the average household’s annual gross income.
To assist readers understand how accessible the mainstream residential market is, the quarterly study, which examines Dubai’s real estate market and sheds light on important trends and forecasts, also included average property prices vs. average annual income by neighborhood.
The Financial Express has concluded that the bulk of Dubai real estate is reasonably priced based on this research and other considerations.
The only exceptions are three upscale communities called Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island, where the cost of a home exceeds 20 times the typical annual salary.
Dubai: A top market for second homes
The Palm Jumeirah, Emirates Hills, and Jumeirah Bay Island are the only three neighborhoods where home values are more than 20 times what the typical household income is. The outliers are these three top luxury submarkets. The majority of foreign buyers are drawn to Dubai’s unrivaled sun, sea, and sand lifestyle, which frequently comes with villa or waterfront purchases, therefore demand is expected to increase here.
Dubai’s upscale neighborhoods continue to be among the most affordable anywhere on earth. This is further cementing Dubai’s position as one of the top destinations for second homes globally, along with the premium residential products that are now available in the highest echelons of the market.
High-end interior design firms are bringing new design styles and ideas to transform exclusive spaces into luxurious dwellings as contemporary designs increasingly dominate the Dubai luxury market.
The location of Dubai
Dubai is located in the United Arab Emirates on the Persian Gulf. It is roughly at sea level; in comparison to other oceans, the Persian Gulf is shallow. Along its southern, northeast, and northwest borders, Dubai is surrounded by Abu Dhabi, Sharjah, and Musandam, an exclave of Oman. Dubai’s north is covered in desert, while its south is home to sandy beaches. About 54 miles or 87 kilometers make up Dubai’s coastline. Several offshore islands, including Palm Jumeirah, Deira Island, and others, have been developed using land reclamation at the same time.
Geographically, the emirate offers enterprises the best of both the East and the West. Its time zone is advantageous for companies who want to grow internationally since it serves as a central place to coordinate the timings of both the western and eastern sides. Additionally, connectivity while flying is a bonus. Using air or sea travel, you can arrive in important cities in Asia, Europe, or the Middle East within a day. When you combine this with a long-term real estate visa, nothing can stop the entrepreneur or investor in you from purchasing a luxurious residence.
Dubai’s luxury residential market is still accessible and strong, and it isn’t exhibiting any signs of slowing down despite all the difficulties caused by global inflation and the lack of fresh supply in comparison to demand.