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Dubai and Abu Dhabi apartment prices continue reaching new heights as we reach mid-2025, with Dubai averaging AED 1.52 million per apartment and Abu Dhabi close behind at AED 1.48 million. As of June 2025, the UAE property market shows strong momentum with 5-8% annual price growth forecast and record transaction volumes hitting AED 522.5 billion in Dubai alone during 2024.
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Dubai apartment prices average AED 1.52 million with 19% annual growth, while Abu Dhabi shows more moderate growth at 10% annually. Total buying costs including fees reach 7-10% of purchase price, with mortgages requiring 20-25% down payment for expatriates.
| Emirate | Average Apartment Price | Price per sqm | Annual Growth Rate |
|---|---|---|---|
| Dubai | AED 1.52 million | AED 19,500-21,500 | 19% |
| Abu Dhabi | AED 1.48 million | AED 15,900-20,976 | 10% |
| Sharjah | AED 800,000 | AED 12,500 | 8% |
| Ajman | AED 650,000 | AED 27,299 | 12% |
| Ras Al Khaimah | AED 700,000 | AED 25,046 | 15% |
What's the current average price of an apartment in the UAE depending on city or emirate?
Dubai leads the UAE apartment market with an average price of AED 1.52 million as of June 2025, representing a 19% increase from the previous year.
Abu Dhabi follows closely with apartment prices averaging AED 1.48-1.55 million for completed units, showing more moderate but steady growth at 10% annually.
Sharjah offers more affordable options with average apartment prices around AED 800,000, making it attractive for first-time buyers and budget-conscious investors. The emirate has seen steady 8% annual price growth.
Northern emirates present even more accessible entry points - Ajman apartments average AED 650,000, Ras Al Khaimah around AED 700,000, with both showing strong growth potential at 12% and 15% respectively.
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How do apartment prices vary by area or neighborhood within major cities like Dubai and Abu Dhabi?
Dubai's most expensive neighborhoods command premium prices, with Palm Jumeirah leading at AED 1.56 million for studios and AED 9.5 million for 3-bedroom apartments.
Downtown Dubai and Dubai Marina follow closely, with 1-bedroom apartments starting at AED 2.5 million and 2-bedroom units reaching AED 4 million in these prime locations.
Mid-range areas like Jumeirah Village Circle (JVC) and Dubai Hills Estate offer better value, with 1-bedroom apartments ranging from AED 700,000 to AED 1.1 million.
Affordable areas including International City and Al Nahda provide entry-level options, with studios starting at AED 234,000 and 1-bedroom apartments from AED 350,000.
In Abu Dhabi, Saadiyat Island and Yas Island represent the luxury segment with 1-bedroom apartments starting at AED 2 million, while Al Reem Island offers mid-range options from AED 1-1.5 million.
What are the average prices based on apartment size and surface area in square meters?
| Apartment Size | Dubai Price Range | Abu Dhabi Price Range | Typical Size (sqm) |
|---|---|---|---|
| Studio | AED 234,000 - 600,000 | AED 800,000+ | 30-45 sqm |
| 1-Bedroom | AED 700,000 - 2,000,000 | AED 1,000,000 - 2,000,000 | 55-80 sqm |
| 2-Bedroom | AED 1,200,000 - 4,000,000 | AED 1,500,000 - 3,000,000 | 90-120 sqm |
| 3-Bedroom | AED 2,000,000 - 9,500,000 | AED 2,000,000 - 4,000,000 | 120-180 sqm |
What's the total cost of buying an apartment including all fees, taxes, agent commissions, and closing costs?
The total cost of buying an apartment in the UAE extends 7-10% beyond the purchase price due to various fees and charges.
Dubai Land Department (DLD) fee represents the largest additional cost at 4% of the purchase price, which buyers must now pay directly as banks can no longer finance this fee as of February 2025.
Real estate agent commission adds another 2% plus 5% VAT, also requiring direct payment since the Central Bank's new directive.
Additional costs include mortgage registration fees (0.25% of loan amount plus AED 290), property valuation fees (AED 2,500-3,500 plus VAT), and conveyancing fees (AED 5,000-10,000).
For a AED 2 million apartment, total additional costs would be approximately AED 140,000-200,000 on top of the purchase price and down payment.
What are the current mortgage interest rates, down payment requirements, and monthly repayment examples for apartments?
Mortgage interest rates in the UAE as of June 2025 range from 3.89-4.44% for fixed rates (1-5 years) and 6.18-6.65% for variable rates linked to EIBOR.
Down payment requirements vary by residency status - expatriates need 20% for properties under AED 5 million and 25% for higher values, while UAE nationals enjoy lower rates at 15% and 20% respectively.
Non-residents face higher requirements at 30% for properties under AED 5 million and 40% for properties above AED 10 million.
For a AED 2 million apartment with 80% financing at 6.18% variable rate over 25 years, monthly payments would be approximately AED 10,400 for principal and interest.
Maximum loan tenure is 25 years for UAE nationals and expatriates, while non-residents are limited to 15 years.
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How have apartment prices in the UAE changed over the past 5 years and the past year?
Dubai apartment prices have surged dramatically over the past year, with 19.43% growth in the year to November 2024, matching the previous year's strong performance.
Over the past five years, Dubai prices have increased by 21.4% since Q1 2021, representing a strong recovery from the pandemic-induced corrections.
Abu Dhabi shows more moderate but steady growth, with apartment prices up 9.88% in the year to November 2024, accelerating from just 2.83% growth in the previous year.
The UAE property market began recovering in 2021 after the 2020 pandemic impact, with prices falling 7.1% in 2020 before rebounding strongly in subsequent years.
Transaction volumes have exploded, with Dubai recording 180,987 deals in 2024, up 36.5% from the previous year, indicating sustained market momentum.
What are the price forecasts for apartments in the next 1 year, 5 years, and 10 years?
Short-term forecasts for 2025 predict continued but moderating growth, with Dubai apartment prices expected to rise 5-8% annually through the end of 2025.
Some analysts warn of potential correction risks, with Fitch predicting possible double-digit price declines in Dubai's second half of 2025 due to supply increases and demand moderation.
Abu Dhabi shows more conservative growth projections at 3-5% annually for the next year, reflecting its more stable market dynamics.
Five-year forecasts suggest 15-30% total appreciation for well-located Dubai properties, with luxury segments potentially seeing 30-40% gains over this period.
Ten-year projections remain positive but dependent on global economic conditions, with sustained growth expected in prime locations while supply-demand dynamics will determine overall market performance.
Which areas are considered most expensive, most affordable, or up-and-coming for apartment buyers?
Most expensive areas in Dubai include Palm Jumeirah, Downtown Dubai, Dubai Marina, and Bluewaters Island, where luxury apartments command premium prices above AED 3 million for 1-bedroom units.
In Abu Dhabi, Saadiyat Island, Yas Island, and Al Raha Beach represent the luxury segment with similar pricing to Dubai's premium areas.
Most affordable options include Dubai's International City, Al Nahda, and Deira areas, where studios start at AED 234,000 and 1-bedroom apartments from AED 350,000.
Up-and-coming areas showing strong growth potential include Dubai's Jumeirah Village Circle, Dubai Creek Harbour, and Mohammed Bin Rashid City, offering good value with appreciation potential.
Abu Dhabi's emerging areas include Al Hudayriyat Island and new phases of Al Reem Island, providing opportunities for early investors.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UAE versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Can you give real-life examples of actual purchase prices and what type of apartment you get for that price?
In Dubai's International City, AED 234,000 gets you a basic studio apartment of 30-40 sqm, representing the most affordable entry point into Dubai's property market.
Jumeirah Village Circle offers excellent value with 1-bedroom apartments ranging from AED 700,000-950,000 for 55-70 sqm units with community amenities.
Downtown Dubai's premium location commands AED 2.5 million or more for a 1-bedroom apartment of 70-90 sqm with Burj Khalifa views and world-class amenities.
Palm Jumeirah luxury apartments start at AED 3 million for 1-bedroom units of 80-100 sqm, offering beachfront living and exclusive resort-style amenities.
In Abu Dhabi, Al Reem Island provides mid-range options at AED 1-1.5 million for 1-bedroom apartments of 70-90 sqm, while Saadiyat Island luxury units start at AED 2 million for similar sizes.
What are the best apartment options if I want to live in it versus rent it out short-term or long-term versus resell for profit later?
For primary residence, choose well-connected family-friendly areas like Jumeirah Village Circle, Dubai Hills Estate, or Abu Dhabi's Al Reem Island, offering good amenities and reasonable commute times.
Short-term rental investments perform best in tourist-heavy areas like Downtown Dubai, Dubai Marina, and Palm Jumeirah, where high demand generates yields of 7-10% annually.
Long-term rental properties succeed in established residential communities like JVC, International City, and Discovery Gardens, providing steady yields of 6-8% with consistent tenant demand.
For resale appreciation, focus on emerging areas with strong infrastructure development like Dubai Creek Harbour, MBR City, and Abu Dhabi's Al Hudayriyat Island.
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What are the smartest choices right now for buying an apartment in the UAE depending on my objective?
For primary residence in June 2025, consider JVC, Dubai Hills Estate, or Al Reem Island for optimal balance of affordability, amenities, and connectivity.
Investment-focused buyers should target JVC, International City, or Business Bay for strong rental yields and steady appreciation potential.
Resale-focused investors should examine Dubai Creek Harbour, MBR City, or Al Hudayriyat Island for maximum capital appreciation over 3-5 years.
Luxury buyers seeking premium lifestyle should focus on Palm Jumeirah, Downtown Dubai, or Saadiyat Island for prestige and long-term value retention.
First-time buyers should consider Sharjah, Ajman, or Dubai's affordable areas to enter the market with lower risk and good growth potential.
How do average apartment prices in the UAE compare to similar global cities like Singapore, Miami, or Istanbul?
| City | Average Price per sqm (USD) | Relative Affordability | Rental Yield |
|---|---|---|---|
| Dubai | $4,900-5,400 | Moderate | 7% |
| Abu Dhabi | $4,300 | Moderate | 6-7% |
| Singapore | $14,800 | Expensive | 2.4% |
| Miami | $6,000-8,000 | Expensive | 4.2% |
| Istanbul | $1,500-2,000 | Affordable | 5-6% |
Dubai and Abu Dhabi offer competitive pricing compared to other global financial centers, with significantly lower costs than Singapore while providing better rental yields.
The UAE's tax-free environment and high rental yields make it attractive compared to Miami or Singapore, where similar properties cost 2-3 times more with lower returns.
Istanbul offers lower purchase prices but comes with higher political and economic risks, making the UAE's stable environment worth the premium for many investors.
It's something we develop in our UAE property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
The UAE apartment market in 2025 presents both opportunities and challenges for buyers and investors.
Dubai's rapid price growth of 19% annually reflects strong demand but raises affordability concerns, while Abu Dhabi's more moderate 10% growth offers better value for money. With total buying costs reaching 7-10% of purchase price and new banking restrictions requiring more upfront cash, buyers need careful financial planning to succeed in this dynamic market.
Sources
- Global Property Guide - UAE Price History
- DAMAC Properties - UAE Real Estate Trends 2025
- Reuters - Dubai Real Estate Prices Forecast
- Imtilak Global - Average Apartment Price in Dubai 2025
- Casttio Properties - Apartment Prices in Abu Dhabi
- First Abu Dhabi Bank - Mortgage Loans UAE
- Engel & Völkers - Cost of Buying Property in Dubai
- Sands of Wealth - UAE Property Market Analysis