There has been a growing demand for affordable homes in Dubai as more people settle down for longer in the city and opt to own a home amid rising rents.
Projects are under development in areas including Arjan, Dubailand, Al Furjan, Majan, Dubai Sports City, Dubai Production City, Dubai Silicon Oasis, Damac Hills, Damac Hills 2 and Jumeirah Village Triangle.
Damac Properties, Samana Developers, Binghatti, Danube, ZaZen, Sol Properties and Iman Developers are among the companies building projects catering to middle-income earners with a monthly salary of between Dh10,000 and Dh25,000 ($2,720 to $6,800).
“Many end-user occupiers are now seeking more affordable accommodation as the cost of living rises, driven by increasing rents and rental yields,” Prathyusha Gurrapu, head of research and consulting at Cushman and Wakefield Core, said.
Buyers with a monthly household income of between Dh20,000 and Dh25,000 could afford homes in the Dh1.2 million bracket, with 30 per cent of their income dedicated to mortgage payments, she said.
“The availability of flexible payment plans in off-plan projects is encouraging more investors and end users to make purchases,” she added.
Damac Properties says it has affordable projects priced below Dh1 million, as well as in the Dh1 million to Dh1.5 million range, which it calls “affordable luxury”, in Dubai at Damac Hills, Damac Lagoons and Business Bay.
Prices depend on location and amenities. In the affordable segment, Damac has one-bedroom apartment units ready starting from Dh440,000 in certain projects. In the affordable luxury segment, the developer offers studio units that are ready starting at Dh1.073 million and for off-plan units, prices vary between Dh1.06 million and Dh1.32 million.
Payment plans for new launches include a 20 per cent downpayment, 4 per cent Dubai Land Department fees and 1 per cent monthly payment. For completed projects, buyers need to make a 100 per cent payment along with DLD fees.
The company currently has about 40,000 units in various stages of development and planning across the affordable, luxury and affordable luxury segments.
