The genuine estate market in Dubai requires a sustainable price for middle class families.

Dugasta Properties is launching a program that offers a guaranteed return of 8%. Middle class families usually can't afford real estate in Dubai when demand for real estate is on the rise and developers are increasing their profits. Prices of studio apartments, which currently range from AED 800,000 to AED 1 million, indicate a possible "overheating" of the real estate market in Dubai. Investors buying properties at the current price may not be able to sell them at the same price if the market weakens in the coming years, officials and market analysts say. The rental income from the studio apartment, which was purchased for Dh800,000, is just Dh32,000 a year when service fees are included. This means that the return is less than 4% of the AED 800,000 investment. This can make real estate investment "uneconomic" as there are other investment instruments that can offer higher returns.

Dubai real estatedeveloper Dugasta Properties Development

launches affordable housing with prices starting from AED 400,000 for a studio apartment. In addition, the company is offering a guaranteed annual return of 8% for the first five years for all types of apartments, be it a studio, one- or two-bedroom apartment.

Dubai real estate market for the first half of 2023

saw 76,119 real estate sales and purchase transactions totaling AED 283 billion, an increase of 76.87% over the AED 160 billion recorded in the corresponding period last year. This reflects an extraordinary increase not only in the number of real estate sales, resales and mortgages, but also an increase in the value of properties and transactions. The average transaction price also increased compared to the same period last year, reflecting an increase in the average value of real estate. From January 2022 to January 2023, the price of a studio apartment increased from AED 400,000-450,000 to AED 800,000-900,000. This unusual price increase makes real estate unaffordable even for high-income families, making real estate prices volatile. Therefore, Dugasta decided to enter the market at a comfortable and attractive price to attract middle class families to buy their dream home, and they believe that this price will be sustainable in the long run, even if the market weakens.