Price per square foot

The UAE property market quotes areas in square feet and compares prices in dirhams per square foot. The calculation is simple: a flat priced at AED 1,800,000 with an area of 900 sq ft costs AED 2,000 per sq ft. For readers used to metric, one square metre is 10.764 square feet, so AED 2,000 per sq ft is about AED 21,500 per square metre.

Its use is comparison. It lets you set one unit against others in the same building, one development against its neighbours, and an off-plan launch against completed homes nearby. Registered transaction data is also reported this way.

Its weakness is that the answer depends on which area is used.

• Apartments are usually priced on total area, meaning the internal area plus the balcony or terrace. A flat with a very large terrace looks cheap per square foot without offering more living space.
• Villas and townhouses are usually priced on built-up area, with the plot size given separately. A large plot adds value that the figure does not show.
• Averages for a district blend studios with penthouses, old stock with new, and sea views with car park views.

Smaller units nearly always cost more per square foot than larger ones in the same building, so compare like with like.

When assessing an off-plan price, compare it with recent sales of completed property of similar quality nearby. A substantial premium for off-plan needs a reason you can identify. A bank's valuation will make the same comparison.