Many people are looking for affordable homes in Dubai. As they choose to stay in the city longer and deal with rising rents, the demand for home ownership is definitely on the rise.

There are some exciting projects in the works in places like Arjan, Dubailand, Al Furjan, Majan, Dubai Sports City, Dubai Production City, Dubai Silicon Oasis, Damac Hills, Damac Hills 2, and Jumeirah Village Triangle.

Several companies, including Damac Properties, Samana Developers, Binghatti, Danube, ZaZen, Sol Properties, and Iman Developers, are working on projects aimed at middle-income earners with monthly salaries ranging from Dh10,000 to Dh25,000 ($2,720 to $6,800).

If your household brings in between Dh20,000 and Dh25,000 a month, some off-plan properties in Dubai priced around Dh1.2 million are within reach, especially if you set aside about 30% of your income for mortgage payments. Flexible payment plans for these off-plan projects really attract more investors and end-users to make a purchase.

Damac Properties has some great affordable options under Dh1 million and those in the “affordable luxury” range between Dh1 million and Dh1.5 million. You can find these in places like Damac Hills and Business Bay.

Prices can differ based on where you are and what amenities you get, starting at Dh440,000 for ready one-bedroom units in the affordable range. In the “affordable luxury” category, you’ll find studio units starting at Dh1.073 million, while off-plan units typically range from Dh1.06 million to Dh1.32 million. This range is familiar to those in the Dubai broking scene.

For new projects, payment plans usually include a 20% down payment, 4% fees for the Dubai Land Department (DLD), and then 1% monthly installments. When projects are completed, we need the full payment along with the DLD fees.

Residential Transactions Surge

Dubai’s property market has rebounded well after the pandemic’s slowdown. This recovery is thanks to government initiatives, such as offering residency permits for retirees and remote workers and expanding the 10-year golden visa program.

Thanks to those diversification efforts, the UAE property market is getting a boost from the overall economic growth.

According to the latest report from Asteco, a property management company, rents and property prices in the emirate went up during the second quarter of this year.

According to Asteco, rental rates for apartments and villas increased by 8 percent and 4 percent, respectively, during this time. On the sales side, apartment prices climbed by 5 percent, while villa prices increased by 8 percent.

In the second quarter of this year, the Dubai Land Department recorded 32,109 transactions, which is a 32 percent increase from the same time last year. Sales jumped by 23 percent compared to last year, reaching Dh63 billion.

According to DLD data compiled by Square Yards, properties priced between Dh1 million and Dh2 million accounted for 33 percent of all transactions, an increase from 27 percent in the same quarter last year. Properties priced under Dh1 million made up 34 percent of all deals, a decrease from 38 percent in the second quarter of 2024.

Dubai 2040 Master Plan Boost

Sheikh Mohammed bin Rashid, the Vice President and Ruler of Dubai, recently shared the Dubai 2040 Urban Master Plan, which focuses on creating affordable housing options for middle-income residents. This plan, launched in 2021, aims to make Dubai the best city in the world over the next twenty years.

So, as part of the plan, they’re looking to develop five main urban areas, and they’re also planning to boost the spaces for educational and health facilities by 25 percent. It aims to boost population densities near mass transit stations.

Expo 2020, hosted in District 2020, will evolve into a thriving economic center of growth and development. Affordable homes combined with exhibition events, tourism destinations, and logistic facilities create the central focus of this area.