Price per square metre: importance and relevance in the property market
The price per square metre is a key indicator in the property market, especially in dynamic markets such as Dubai. It provides information on the cost per square metre of living or usable space and is a key factor that buyers and investors take into account both when valuing a property and when buying or renting a property.
How is the price per square metre determined?
The price per square metre is generally influenced by the following factors:
- Location of the property
- Type of property (e.g. residential property, commercial property)
- Market development and current demand
- Additional amenities and infrastructure
Influence of the price per square metre on the property market
A rising price per square metre often signals increased demand and can indicate a buyer’s market. Conversely, falling prices can indicate a buyer’s market where supply exceeds demand.
Prices per square metre in different districts of Dubai
Prices per square metre vary considerably depending on the district in Dubai. Popular and central locations such as Dubai Marina or Downtown Dubai tend to have higher prices than peripheral locations.
To get a feel for current prices per square metre, it is worth consulting local property listings or consulting a real estate agent.
Relevance for buyers and sellers
For buyers, the price per square metre helps to assess the profitability of an investment and compare suitable offers. Sellers, on the other hand, can use the price to position their property competitively.
The role of the price per square metre in property investment
Investors use the price per square metre as an indicator of potential returns. A low price per square metre in an up-and-coming district, for example, can indicate a future increase in value.
Illustrative example on the topic: price per square metre
Imagine a young couple planning to buy their first flat in Dubai. They have the choice between a flat in Jumeirah Beach Residence with a price per square metre of AED 15,000 and another in the newly emerging Jumeirah Village Circle, where the price is only AED 10,000. Although the beachfront location seems tempting, they are opting for the second option in the hope that the price per square metre there will increase in the coming years, while the investment in the central location may no longer deliver significant value appreciation. This shows how important the price per square metre is in the decisions of buyers in a rapidly developing market like Dubai.
Summary
Price per square metre is a crucial criterion in the property market that helps both buyers and sellers make informed decisions. Its relevance ranges from property valuation to analysing market trends. To make the best decisions, potential buyers should compare the different prices in different neighbourhoods and, if necessary, seek advice from a real estate agency.
