Property Finder research says developers are progressively reducing the unit size in order to lower prices, Arabian Business reports.
Developers in Dubai have been progressively reducing the unit size to make properties more affordable for investors and end-users, according to research by Property Finder.
The UAE-based real estate portal said, however, that the average price per square foot has continued to increase over the years.
Based on a comparison of 28,000 apartment transactions in 2015 and 2019, the average size of an off-plan Dubai studio transacted in 2015 was 480 sq ft and has reduced to 406 sq ft in 2019.
Similarly, the average size of an under-construction 1 bedroom apartment sold in 2015 was 845 sq ft, which has shrunk to 670 sq ft today.
Two bedroom apartments are not immune to this trend either, with transacted off-plan unit size reducing from 1,300 sq ft in 2015 to 980 sq ft this year, the research showed.
“This is a strategy deployed by developers to reduce the overall ticket price and thereby attract new customers,” Property Finder noted.
It added that the average price per sq ft for an off-plan studio sold for AED1,409 in 2015 has increased to AED1,630 in 2019. Similarly, a 1 bedroom off-plan unit that transacted for AED1,161 in 2015 is being sold for AED1,363 today.