There has been a growing demand for affordable homes in Dubai as more people settle down for longer in the city and opt to own a home amid rising rents.
Projects are under development in areas including Arjan, Dubailand, Al Furjan, Majan, Dubai Sports City, Dubai Production City, Dubai Silicon Oasis, Damac Hills, Damac Hills 2 and Jumeirah Village Triangle.
Damac Properties, Samana Developers, Binghatti, Danube, ZaZen, Sol Properties and Iman Developers are among the companies building projects catering to middle-income earners with a monthly salary of between Dh10,000 and Dh25,000 ($2,720 to $6,800).
“Many end-user occupiers are now seeking more affordable accommodation as the cost of living rises, driven by increasing rents and rental yields,” Prathyusha Gurrapu, head of research and consulting at Cushman and Wakefield Core, said.
Buyers with a monthly household income of between Dh20,000 and Dh25,000 could afford homes in the Dh1.2 million bracket, with 30 per cent of their income dedicated to mortgage payments, she said.
“The availability of flexible payment plans in off-plan projects is encouraging more investors and end users to make purchases,” she added.
Damac Properties says it has affordable projects priced below Dh1 million, as well as in the Dh1 million to Dh1.5 million range, which it calls “affordable luxury”, in Dubai at Damac Hills, Damac Lagoons and Business Bay.
Prices depend on location and amenities. In the affordable segment, Damac has one-bedroom apartment units ready starting from Dh440,000 in certain projects. In the affordable luxury segment, the developer offers studio units that are ready starting at Dh1.073 million and for off-plan units, prices vary between Dh1.06 million and Dh1.32 million.
Payment plans for new launches include a 20 per cent downpayment, 4 per cent Dubai Land Department fees and 1 per cent monthly payment. For completed projects, buyers need to make a 100 per cent payment along with DLD fees.
The company currently has about 40,000 units in various stages of development and planning across the affordable, luxury and affordable luxury segments.
New projects in areas including Business Bay and Damac Lagoons cater “for a range of investment types, from affordable to high-end ultra-luxury”, Mohammed Tahaineh, Damac's general manager, told The National.
Dubai-based Samana Developers, which is building 29 projects, currently prices a studio flat in the off-plan segment from Dh694,000. A one-bedroom flat costs Dh1,049,000 at its project in Dubailand, with a downpayment of 15 per cent for domestic customers and 20 per cent for international buyers.
The company expects to deliver most units within the next four years at Dubailand, Production City and Studio City.
“The demand is extremely good,” Imran Farooq, chief executive of Samana, said. “Whatever we launch, 80 per cent of it sells out in 72 hours.”
UAE nationals and Dubai residents are the main buyers. Demand is also coming from Europe and Arab countries, with customers buying homes for investment, for living in and to have a second home in Dubai.
Residential transactions surge
Dubai’s property market rebounded strongly from the coronavirus pandemic-induced slowdown on the back of government initiatives such as residency permits for retired and remote workers and the expansion of the 10-year golden visa programme.
Overall growth in the UAE’s economy due to diversification efforts is also supporting the property market.
Rents and property prices increased in the emirate during the second quarter of this year, according to the latest report from property management company Asteco.
Apartment and villa rental rates increased by 8 per cent and 4 per cent, respectively, during the period while apartment sales prices rose by 5 per cent and villa prices by 8 per cent, Asteco said.
The Dubai Land Department registered 32,109 transactions in the second quarter of this year, up 32 per cent compared to the same period last year. The total sales value surged 23 per cent year-on-year to Dh63 billion.
Properties priced between Dh1 million and Dh2 million made up 33 per cent of total transactions, up from 27 per cent during the same quarter last year, DLD data compiled by Square Yards found. Properties priced below Dh1 million comprised 34 per cent of the total deals, down from 38 per cent in the second quarter of 2023.
Dubai developer Danube recently launched the Oasiz in Dubai Silicon Oasis, targeting buyers earning from Dh15,000 to Dh20,000 per month. A studio starts at Dh699,000 with a 20 per cent downpayment and a 1 per cent payment plan which amounts to Dh6,990 per month.
“Instead of paying (about) Dh6,000 in rent each month, potential buyers can now put that money towards owning their own apartment,” Rizwan Sajan, chairman and founder of Danube Group, said.
“This initiative is geared towards first-time homebuyers, young professionals, and mid-level investors who are looking to make their first real estate investment in Dubai.”
Dubai developer Binghatti is developing the Binghatti Ghost project in Al Jaddaf. It offers studios, one, two and three-bedroom apartments with prices starting from Dh867,750 for a studio.
Sol Properties, another UAE based developer, is also launching affordable homes amid higher demand from buyers. The price of a studio starts from Dh680,000, while a one-bedroom apartment costs Dh955,000.
The company is building 3000 units at Jumeirah Village Triangle and targeting individuals who earn between Dh10,000 and Dh12,000 per month.
“Many expats, particularly those with modest incomes, are increasingly seeking affordable housing options,” Ajay Bhatia, founder and chief executive of Sol Properties, said.
“Initiatives like the 10-year golden visa and the residence visa for the retired have further encouraged long-term settlement in Dubai, boosting demand for affordable and mid-tier housing.”
Dubai-based ZaZen Properties is developing projects in Al Furjan and Jumeirah Village Triangle with prices ranging from an average of Dh950,000 for a one-bedroom apartment to Dh2.5 million for a three-bedroom unit with a maid’s room.
“We’ve observed a noticeable increase in demand for high-quality, sustainable homes, particularly due to the influx of new residents moving to the UAE and Dubai over the past year,” Madhav Dhar, chief operating officer and founding member of ZaZen, said.
“Today’s buyers are more discerning and are seeking more spacious homes as they plan for mid-to-long-term stays, unlike the more transient behaviour we have witnessed in previous years.”
Both the affordable and luxury property markets in Dubai are growing, but at different rates, according to Danube's Mr Sajan. “While there is steady demand in the affordable segment, the luxury market has seen a more rapid expansion in recent years,” he said.
“This trend can be attributed to Dubai's international reputation as a luxury destination combined with the promise of a very high standard of living, which is drawing high-net worth individuals and international investors to invest in the city.”
Dubai's luxury home market hit record levels in 2023 as sales of $10 million-plus homes nearly doubled to $7.6 billion, performing better than London and New York, Knight Frank said in January.
The emirate's super-prime market – properties valued at more than $25 million – also surged last year, with 56 deals worth $2.3 billion – double the previous year's total.
Global high-net-worth individuals (HNWIs) are expected to spend $4.4 billion buying Dubai property this year, up 76 per cent compared to last year, as demand for luxury homes from the world’s super-rich continues to remain strong in the emirate, Knight Frank said.
Dubai's market is still skewed towards the high end, with new luxury developments becoming more prominent in the last 12 to 18 months “due to margin attraction, and the demographic profile of expat arrivals or investors”, Steve Bramley-Jackson, global head of real estate research at HSBC Bank Middle East, said.
Meanwhile, affordable property costing up to Dh1 million “will appeal quite simply to middle-income earners who intend to reside in Dubai, rather than purely invest”, he added.
Dubai 2040 master plan boost
The Dubai 2040 Urban Master Plan unveiled by Vice President and Ruler of Dubai Sheikh Mohammed bin Rashid, highlights developing affordable housing units to cater to middle-income residents. The plan, unveiled in 2021, aims to ensure that Dubai is the best city in the world in the next two decades.
As part of the plan, five main urban areas will be developed and spaces designated for educational and health facilities will increase by 25 per cent. It also seeks to increase population densities around mass transit stations.
District 2020, the site of Expo 2020, is expected to become an economic and growth hot spot. Featuring affordable housing, it will also be a focal point for the exhibitions, tourism and logistics sectors.
Dubai is estimated to register a handover of 38,174 new homes this year as the property market booms, according to a new report from consultancy ValuStrat.
Total estimated completions as of the first half of this year stood at 6,939 apartments and 2,145 villas, equivalent to 20 per cent of preliminary estimates for the whole of 2024, the consultancy said in July.
About 91,718 apartments and 28,385 villas are under construction in Dubai with promised handovers by 2028, ValuStrat estimated. Of these projects, 10 per cent are in Jumeirah Village Circle, with another 10 per cent in Business Bay, followed by Jumeirah Lakes Towers with 5 per cent, the data showed.
The influx of expatriates seeking budget-friendly housing options has “significantly increased demand in the affordable housing segment”, Luke Remington, managing director of haus&haus real estate, said. Investors are also “recognising the potential for steady returns from affordable housing, especially in popular areas like JVC and Arjan, where demand for rentals is high”.
However, he added that developers are facing substantial increases in construction costs and must focus on boosting quality “to meet the expectations of today’s buyers and remain competitive”.
GYAN’S ASIAN OUTPUT
2011-2015: Al Ain – 123 apps, 128 goals
2015-2017: Shanghai SIPG – 20 apps, 7 goals
2016-2017: Al Ahli (loan) – 25 apps, 11 goals
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Essentials
The flights
Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes.
The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast.
The tours
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.
'Lost in Space'
Creators: Matt Sazama, Burk Sharpless, Irwin Allen
Stars: Molly Parker, Toby Stephens, Maxwell Jenkins
Rating: 4/5
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
Traits of Chinese zodiac animals
Tiger:independent, successful, volatile
Rat:witty, creative, charming
Ox:diligent, perseverent, conservative
Rabbit:gracious, considerate, sensitive
Dragon:prosperous, brave, rash
Snake:calm, thoughtful, stubborn
Horse:faithful, energetic, carefree
Sheep:easy-going, peacemaker, curious
Monkey:family-orientated, clever, playful
Rooster:honest, confident, pompous
Dog:loyal, kind, perfectionist
Boar:loving, tolerant, indulgent
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
How to play the stock market recovery in 2021?
If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.
Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.
Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.
Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).
Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal.
Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.
By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.
As demand for energy fell, the oil and gas industry had a tough year, too.
Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.
He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.”
This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”
Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.
The biog
Name: Mohammed Imtiaz
From: Gujranwala, Pakistan
Arrived in the UAE: 1976
Favourite clothes to make: Suit
Cost of a hand-made suit: From Dh550
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Our Time Has Come
Alyssa Ayres, Oxford University Press
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
BUNDESLIGA FIXTURES
(All games 4-3pm kick UAE time) Bayern Munich v Augsburg, Borussia Dortmund v Bayer Leverkusen, Hoffenheim v Hertha Berlin, Wolfsburg v Mainz , Eintracht Frankfurt v Freiburg, Union Berlin v RB Leipzig, Cologne v Schalke , Werder Bremen v Borussia Monchengladbach, Stuttgart v Arminia Bielefeld
A list of the animal rescue organisations in the UAE
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
