It’s not your imagination—Dubai homes are shrinking. According to ValuStrat, the average size of a home sold in the city this year was 1,450 square feet, down from 2,087 square feet in 2021. The cause of the shrinkage in new homes appears to be a multi-pronged approach by developers that takes into account the U.A.E.’s plan to achieve net zero by 2050, growing concerns about energy bills, and more efficient use of space amid rising land costs. Despite the falling home size, prices have been heading in the opposite direction. The average price square footage for a new Dubai home sold this year was AED 1,490 (US$406), up from AED 889 in 2012.
For a detailed perspective on the property market, visit: Dubai - Real Estate Review Q3 2024
