Dubai's new homes are shrinking as developers scramble to build more units amid rising land prices, pressure for affordable bills, and net-zero strategies.
New data shows the average new home is smaller than at any point in the past decade. A recent report from ValuStrat, using Dubai Land Department figures, found the average size of a home sold this year was 1,450 square feet, down from 2,087 square feet in 2021.
In contrast, the average price was Dh1,490 per sq ft – up from Dh889 in 2012 and the highest on record. With the UAE's plan to be net zero by 2050 and rising land costs, developers are under pressure to build smaller, more energy-efficient units, with lower utility costs.
In 2008, at the start of the global financial crisis, one-bedroom units were typically around 1,100 square feet in Dubai’s property market. Today, one-bedroom homes can be as small as 500 square feet, he said.
As a result, home hunters are prioritising practical layouts and affordability over spaciousness. In low-rise apartment districts areas such as Discovery Gardens and The Greens, which are on the metro line and where there has been a rush of home renovations, values have surged.
A recent report by Betterhomes revealed that long-term residency in Dubai is on the rise, with 89 per cent of residents planning to stay in the city for more than five years and 66 per cent intending to remain for over a decade. This trend is driving developers to focus on functionality and affordability rather than space, it said.
We’re seeing homes get smaller, but it’s primarily about maintaining affordability amidst rising land and building costs,” said Elsa Angelo, marketing specialist at Betterhomes. The shift towards smaller homes is a direct response to increased construction and land costs. “Developers are building smaller units to keep the overall price tag affordable for buyers, even if it means compromising on square footage.”
