6 Factors that Impact the Price of a Residential PropertyApril 25, 2021
It goes without saying that property prices in Dubai are on the higher side. It’s tough for a salaried individual to own living space in this bustling city. However, thanks to the various home mortgage and financing options available in the emirate, a lot of people have realised their dream of owning a beautiful home in the City of Gold.
Having said that, an important thing to know here is the property rates in Dubai depend on various factors. Keeping market conditions aside, there are numerous things that must be taken into account when deciding the price of a property. Let’s take a look at them:
First of all, it’s the location of the property that has the maximum impact on the price. Even a small studio apartment located in a well-known community like Dubai Marina, Downtown Dubai or Palm Jumeirah will cost you higher than a large apartment in a neighbourhood that’s not fully developed and located away from the city.
Similarly, waterfront homes are costlier as compared to other properties. This is majorly because of their close proximity to the beach/sea and the rich views the residents get to enjoy from their dwellings.
Type of Property
Next, the type of property also plays a role in determining its value. Needless to say, villas are expensive as compared to studios and apartments as they offer an exclusive lifestyle, with no privacy concerns. However, apartment units in certain towers have prices on the higher side as well. This is due to the fact that they come with state of the art amenities and are nestled in buildings that occupy prime locations in the emirate.
Penthouses, known for their ultra-luxurious lifestyle, are also expensive. These units are mostly located on top floors of towers and buildings.
A villa having a modern design, built as per the latest architectural values, is bound to be priced higher as compared to the one that features an old and a rather simple design. The same goes for apartments, townhouses and other types of properties. However, the location factor also comes into play here. A housing unit that features an old design but occupies a strategic location in a popular community, such as Dubai Marina or Downtown, will cost a lot.
Amenities and Facilities
These are the things that shape the lifestyle of residents. Hence, developers tend to play a lot of importance to this factor. Modern residential projects now feature state of the art amenities and facilities, such as temperature-controlled infinity pools, fitness centres, rooftop decks, BBQ areas, lawns, play areas, parking facilities, etc.
Bigger, spacious properties that are properly planned have a higher price tag as compared to congested and smaller ones. The number of rooms a property features also impact the price. Needless to say, a villa having 6-bedrooms will cost you more than a 4 or 5-bed one.
The selection of the layout or configurations usually depends on family requirements. So, if your budget permits, opt for a bigger residence. Even if it may seem too big, keeping your current requirements in consideration, you should opt for it as your family may grow in future. Furthermore, bigger properties also offer a high ROI.
Ready or Off-Plan
Lastly, the development status of the property impacts its price a lot. Ready properties, as we all know, are expensive, while off-plan ones can be purchased at comparatively lower rates. The opportunity to buy off-plan properties has certainly helped a lot of people to turn their dream of becoming a homeowner into a reality. Also, investors, too, have made use of the prospects these properties offer.
Having said that, there are some flipsides associated with buying an off-plan property as well. Firstly, it may take a long time to be completed. Thus, you wouldn’t be able to move into or sell your newly purchased property immediately. Secondly, the market conditions can change, and it can have an impact on the price of the property. The safe bet would be to buy a unit in a project like Stella Maris Dubai that occupies a prime location (Dubai Marina) and comes with the distinct feature of being the last waterfront development in the neighbourhood.