Why Is It So Expensive? What Is The Cost of Real Estate in The UAE

In Dubai you can buy an apartment for $150,000 and $17,000,000. The price range is large, but it is easy to explain. Developers take into account dozens of factors before putting the price. We have figured out what makes up the cost of real estate in Dubai and why some cost a couple of hundred thousand, while others cost a couple of million.

A lot depends on where the developer buys the plot. If it is a developed area with good infrastructure, the land will cost more than in a location where construction is just beginning.

The most expensive land is in coastal locations where there is ready infrastructure. For example, artificial islands Palm Jumeirah and Bluewaters, tourist location Dubai Marina, Dubai Creek Harbour, as well as business districts Downtown Dubai or Business Bay.

Sometimes developers make exceptions and put the price lower than the surrounding properties. For example, Kempinski Residences was recently launched in the Dubai Marina area. We analyzed the price in neighboring projects and it turned out that the cost per square meter was $8,000 per square meter. And in the Kempinski project it was $6,500. That is why we recommended our clients to buy units in this project — at the start of sales, the investor benefits.

When calculating the price, the UAE real estate developers will always be guided by the average cost per square meter in the properties that are located around the site.

Apartments by the sea in Dubai are understandably more expensive. Sea views sell themselves. Also, if the demand for apartments in a particular neighborhood is generally high, the developer can follow the market and raise the price. Examples of neighborhoods that only increase in value over time are Dubai Hills Estate, Dubai Creek Harbour, Downtown Dubai and others.

The price of housing is also heavily influenced by the level of the complex. In an economy-class apartment there will be inexpensive finishing, typical layouts, and a standard set of additional services.

In premium housing owners get much more — expensive fabrics from Armani, Hermes dishes, smart home systems. You can even get a Bentley as a gift — such a surprise awaits buyers of villas in the Mira Villas project.

Parking, swimming pools and fitness facilities are no longer a surprise to anyone — even the most budget-friendly complexes have them. Today, developers are creating projects that change the way of life: green parks right by the house, lounge areas with panoramic views, private beaches and co-working spaces.

Much also depends on the brand. The projects of well-known developers can cost 20-50% more than the complexes of noname-developers.

By the way, there is an interesting trend in the market — in order to increase the value of their product and the price, developers unite with well-known brands.

For example, the cost of Mercedes-Benz Places residences is more than $2,000,000. That's because they have a world-renowned automobile company behind them. Usually the markup for the brand is 30%.

We have videos about branded residences on YouTube channel. Find out how projects in collaboration with brands differ from others and whether they are worth investing in:

It is not enough to build a facility. It must also be competently designed and then marketed. In order to stand out and increase the value of the object, a company can attract renowned architects. For example, this is what the Omniyat developer in Dubai did when it ordered the project of Vela Viento complex from the famous British bureau Foster + Partners.

In addition, the costs should include marketing costs and commissions to real estate agencies. Make a website, organize an event, buy advertising — all this costs money, although relative to other costs it is not too large a part.

Furnishings, kitchen, appliances, furniture, plumbing, elevators, facade finish material and dozens of other cost items. For example, Object 1 developer in the project Ozone1 has a Japanese air conditioning system. All this also affects the cost per square meter.

The developer builds his project not for the sake of beauty, but to make money. Usually about 30% of the cost is the developer's profit.

The main factor that affects the cost of real estate — the ratio of supply and demand. And the demand for square meters in Dubai is still high, the market is growing — real estate sales increased by 30.3% in the first quarter of 2025.

Want to start making money on Dubai real estate with us and our investors? Contact us, we will organize everything.