Apartments
An apartment is a one-story residential unit within a multi-unit building equipped with its entrance, bathroom, and kitchen, and one of the most popular property types in Dubai. While apartments are part of larger buildings, which may be classified as commercial property based on the number of units, each apartment functions as individual residential real estate. Apartments come in various property types in Dubia, including high-rise and service apartments. A high-rise apartment, defined by the Dubai Building Code, is a building with a height greater than or equal to 23 meters and up to 90 meters. A serviced apartment in Dubai is a furnished residential unit that provides hotel-like services and amenities, typically for short- or long-term stays.
High-rise and serviced apartments in Dubai are found in key areas like Downtown, Dubai Marina, Business Bay, Palm Jumeirah, Jumeirah Beach Residence, Dubai Creek Harbour, and Al Barsha. Buying apartments in Dubai can cost an average of AED 23,345 ($6,357) per square meter, ranging from AED 22,316 ($6,077) for studio-type apartments to AED 61,128 ($16,645) for four-bedroom apartments. The average rent for a one-bedroom apartment in the city center is AED 6,398 ($1,742), while a three-bedroom unit in a central location costs around AED 12,870 ($3,505).
Villas
A villa is typically a single-story residence with an outdoor patio and a front garden or terrace. Villas can be attached to neighboring villas, sharing at least one wall. Historically, the concept of the villa dates back to the Roman Empire, where they were known as “Roman villas” and built on rural estates owned by wealthy Romans. Today, they are more commonly found in suburban rather than urban areas. A villa generally features a living room, multiple bedrooms, a garden, and sometimes a private pool. Villas for sale in Dubai are available in prime communities like Palm Jumeirah, Emirates Hills, Arabian Ranches, Dubai Hills Estate, and Al Barari. Villas are among the property types in Dubai that are in demand, and buying one can cost AED 3 million ($816,900) to AED 4 million ($1.09 million) for economy options, AED 4 million ($1.09 million) to AED 8 million ($2.18 million) for mid-range, and AED 8 million ($2.18 million) and above for luxury villas.
Penthouses
Penthouses, which often span the top floor or multiple upper floors of a building, are designed to offer unobstructed views, generous space, and luxurious amenities, setting them apart from standard units. Penthouses are property types in Dubai known for unique features like high ceilings, floor-to-ceiling windows, private pools, and high-end finishes, emphasizing exclusivity. Luxury penthouses in Dubai are available in prime locations like Downtown Dubai (The Address Residences, Burj Vista), Dubai Marina (Marina Gate, Cayan Tower, Le Reve), Palm Jumeirah (One Palm, Atlantis The Royal Residences, Oceana Residences), and Jumeirah Beach Residence (Al Fattan, Rimal Tower). Purchase prices for penthouses in Dubai on Bayut, a prominent UAE-based real estate portal, range from AED 1.07 million ($291,361) to AED 750 million ($204.23 million), or AED 1,310 ($357) per square foot, with the average price in the first and second quarters of 2024 being AED 44.13 million ($12.02 million), though costs vary based on size, type, and condition.
Commercial properties
Commercial property refers to any property utilized for business activities or profit generation, and legally, it is defined as property not intended for residential use. Generally, commercial real estate is leased to tenants for income-generating purposes. Commercial spaces are property types in Dubai that span many properties, from small shops to large shopping centers. It includes office spaces, hotels, resorts, restaurants, and healthcare facilities. Dubai offers a range of prime locations for commercial spaces, including Business Bay, Jumeirah Lake Towers, Meydan One, and International City, each catering to different business needs, from offices and retail outlets to industrial and tech-focused properties. The average price of commercial properties in Dubai ranges from AED 490,000 ($133,427) to AED 2 million ($544,600), depending on size and location.
Off-plan properties
Buying off-plan property means purchasing a property based on its plans, often before construction starts, though properties under construction or even completed can also be considered off-plan. These property types in Dubai are popular with investors because off-plan properties are usually priced lower than finished ones, allowing for significant value appreciation during construction, particularly in desirable or up-and-coming areas. To avoid risks, here are five critical factors for investors and homebuyers to consider before buying off-plan properties in Dubai:
- Developer’s credibility: Ensure the developer is reliable and can secure your funds throughout the construction period.
- Transparency: The developer should share project updates and financial details openly, providing regular progress reports.
- Track record: Research the developer’s past projects and client satisfaction to assess their reliability and responsiveness post-handover.
- Project viability: Evaluate the project’s location and market potential to ensure the investment will likely be appreciated.
- Payment terms: Review and seek legal advice on the payment plan, ensuring it aligns with the project timeline and includes precise deposit and installment dates.
Freehold vs. leasehold properties
In addition to the property types in Dubai listed above, foreigners must understand the concept of freehold and leasehold ownership and the designated zones for buying these property types in Dubai. Below is a comparison of freehold vs. leasehold property in Dubai:
- Freehold properties: Buying a freehold property in Dubai means complete ownership of the property and the land, with the freedom to sell, lease, or transfer it without restrictions. Freehold properties are sought-after property types in Dubai, and the country has many prime freehold communities, such as Palm Jumeirah, Downtown Dubai, Arabian Ranches, Dubai Hills Estate, and Mohammed Bin Rashid City (MBR City), which offer luxury residences from apartments to villas. A real estate agent can assist in choosing the ideal location for your purchase.
- Leasehold properties: Leasehold properties give you ownership of the building or unit but not the land, which remains with a government entity or private owner. These properties are leased for a specified period, usually up to 99 years, though the length can vary by developer and area. Leasehold properties are also attractive real estate investment in Dubai for foreigners, and you can find them at famous leasehold zones, including the Jumeirah Lakes Towers, Business Bay, Discovery Gardens, Dubai Silicon Oasis, International City, Jumeirah Beach Residence, DIFC, and Motor City.
Valuable insights and practical advice, distilled from years of expertise and real-world experience.
Frequently Asked Questions (FAQs)
What property types in Dubai are available for foreigners to purchase?
The property types in Dubai available for foreigners to purchase include apartments, villas, penthouses, and commercial and off-plan properties.
Can foreigners buy freehold properties in Dubai?
Yes, foreigners can buy freehold properties in Dubai, but they can only do so in specific areas known as freehold zones.
What is the difference between off-plan and ready properties in Dubai?
The difference between off-plan and ready properties in Dubai is the availability for occupancy. In Dubai, off-plan properties are purchased before or during construction, while ready properties are completed and available for immediate occupancy or rental.
Which areas in Dubai are the best for buying villas and townhouses?
Buying villas and townhouses in Dubai is best in popular areas, including Arabian Ranches, Palm Jumeirah, Dubai Hills Estate, Jumeirah Village Circle, and Damac Hills.
