Dubai Property Surge: High Prices, Payment Plans Shift Buyers to Outskirts

Dubai’s property market is changing a lot. Prices in famous areas like Downtown Dubai, Business Bay, Palm Jumeirah, Dubai Marina, Sheikh Zayed Road, and Dubai Hills Estate are rising quickly. These places see prices rise by small to big amounts every three months. This started happening more during COVID-19 because many rich people and foreigners moved to Dubai.

Now, these high prices and new payment plans by developers are making it hard for people to buy homes in these central areas. So, many buyers are looking for cheaper houses in places farther from the city center. These areas, called suburbs, are now becoming very popular, and their prices are increasing because more people want to buy there.

For example, Discovery Gardens had the biggest price increase at 43%. Next, Jumeirah Lakes Towers prices went up by 34%, and Dubailand (Remraam) prices grew by 28%. Even areas like City Walk and Dubai Hills Estate, which are not far from the city, also saw prices rise by 12%.
“This is happening because suburban areas cost less, and people can’t afford central places anymore,” said Prathyusha Gurrapu from Cushman & Wakefield Core. “People are moving to these cheaper areas for better value.”

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The rise in prices is happening all over Dubai. For 17 quarters in a row (more than four years), prices have kept going up. In the last three months of 2024, prices were 20% higher than the same time last year. Villas became 23% more expensive, and apartments went up by 19%.
A lot of foreign buyers like off-plan homes. These homes are cheaper than buying houses in cities like London, New York, or Hong Kong. To attract more buyers, developers in Dubai are giving special payment plans like 80/20 or 75/25. These plans help the builders complete the homes on time because construction costs are going up, and it’s hard to find good workers now.

But these payment plans can be hard for people with less money. Many families with small budgets find it tough to buy bigger homes like villas. Asteco, a company that studies real estate, said, “These new payment plans help some people, but they make it hard for others to afford homes.”

Even with these challenges, off-plan homes are still very popular. Properties from well-known builders in good locations sell out very quickly—sometimes in just hours.
As the prices in central Dubai get too high, more people are choosing to buy in suburban areas. These outer locations are now becoming the top choice for home buyers, and their prices are going up fast. This shift is changing how people buy homes in Dubai.

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