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Saima’s analysis

Understanding Price per Square Foot

See a worked townhouse calculation and understand how built-up area, plot size and comparable-property assumptions affect a comparison.

The question behind the comparison

How should a townhouse buyer assess the relationship between price, internal space and future value? For this general worked example, assume an AED 4.3 million price and 2,700 sq ft built-up area, with a separate plot of 2,200 sq ft. These inputs illustrate a method rather than a property offer.

Start with a consistent area basis

Historical price inputAED 4,300,000
Built-up area input2,700 sq ft
Price ÷ built-up areaAED 1,592.59 per built-up sq ft
Separate plot inputApproximately 2,200 sq ft

The calculated result is approximately AED 1,593 per built-up square foot. It should not be labelled AED 1,500 using these exact inputs. Plot area is considered separately; it is not added to the built-up area to produce a lower headline rate.

A scenario, not a resale forecast

If a comparable future value were AED 2,300 per built-up sq ft, 2,700 sq ft would imply AED 6,210,000. Compared with AED 4,300,000, that is an illustrative gross increase of AED 1,910,000, or 44.42%, before all acquisition, holding and selling costs.

What would need to support that scenario

The comparison needs dated transaction evidence from genuinely similar homes, adjustments for plot and unit position, community completion and evidence of buyer demand. No future price or time to resale is established by the arithmetic alone.

Method adapted from Saima’s earlier content discussions. Inputs are illustrative, not a current listing or realised client result. Benchmark AED 2,300/sq ft is an assumed scenario, not a verified market comparable. Current project documents and transaction evidence are required for a live recommendation.

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