Living and Investing in Dubai: Real Prices, Real Costs, Real Facts

By Irem Demirci

Dubai in Numbers - What Buyers and Investors Actually Pay

Dubai is often associated with luxury, but the market is far more diverse than that. Below is a realistic breakdown of prices and costs people encounter when buying or living in Dubai.

1. Apartment Purchase Prices

Prices depend heavily on location, building age, and amenities.

Average Prices per Square Meter

  • Citywide average - €4,500 to €6,000 per sqm
  • Prime areas (Downtown, Palm Jumeirah, Dubai Marina) - €6,500 to €10,000+ per sqm
  • Mid-market communities (JVC, Business Bay, Arjan) - €3,500 to €5,000 per sqm
  • Emerging areas (Dubai South, Dubailand) - €2,500 to €3,800 per sqm

Typical Purchase Budgets

  • Studio apartment - €150,000 to €280,000
  • 1-bedroom apartment - €220,000 to €400,000
  • 2-bedroom apartment - €350,000 to €650,000
  • Villas and townhouses - €600,000 to €2,000,000+

Dubai offers entry points at very different budget levels, which is one reason international demand remains strong.

2. Rental Prices and Yields

Dubai is a rental-driven city with strong tenant demand.

Average Annual Rents

  • Studio apartment - €9,000 to €16,000 per year
  • 1-bedroom apartment - €12,000 to €25,000 per year
  • 2-bedroom apartment - €18,000 to €40,000 per year
  • Villas - €30,000 to €90,000+ per year

Typical Gross Rental Yields

  • Apartments - 6 to 9 percent
  • Villas - 5 to 7 percent

Yields vary by building quality, management, and location, but Dubai remains one of the strongest yield markets among global cities.

3. One-Time Purchase Costs

Dubai has relatively low transaction costs compared to many countries.

  • Dubai Land Department fee - 4 percent
  • Registration and admin fees - approx. 0.5 percent
  • Agent fee - approx. 2 percent

Example:

  • €400,000 apartment - approx. €26,000 total purchase costs

There is no property transfer tax beyond these fees.

4. Ongoing Ownership Costs

Monthly costs are generally predictable.

  • Service charges - €15 to €35 per sqm per year (depending on building and amenities)
  • Utilities and cooling - €120 to €250 per month
  • Property insurance - relatively low
  • No annual property tax

Dubai has no capital gains tax and no annual property tax for individuals.

5. Financing Basics

Mortgages are available to residents and non-residents.

  • Typical down payment - 20 percent (residents), 30 to 40 percent (non-residents)
  • Mortgage terms - up to 25 years
  • Fixed and variable options available

Many buyers choose to purchase off-plan with developer payment plans instead of traditional financing.

6. Why Investors Choose Dubai

Search trends show buyers focus on:

  • rental yield
  • tax efficiency
  • liquidity
  • ease of ownership
  • international tenant demand

Dubai attracts investors because it offers:

  • strong cash flow
  • clear legal framework
  • foreign ownership in designated zones
  • fast transactions
  • global demand from tenants and buyers

7. Who Buys Property in Dubai

Typical buyers include:

  • international investors
  • professionals relocating for work
  • entrepreneurs and business owners
  • second-home buyers
  • portfolio investors diversifying outside Europe

Many buyers own property in Dubai without living there full-time.

Final Takeaway

Dubai is not just a luxury market.

It is a high-functioning, yield-driven real estate market with clear rules and global demand.

With:

  • competitive entry prices
  • strong rental yields
  • low transaction costs
  • no annual property tax

Dubai remains one of the most attractive cities worldwide for both living and investing.