Popular areas, price increases and in-demand properties in Dubai revealed.
The Dubai real estate market continues its upward trajectory following continued demand and high interest in the first half of 2023, according to a new analysis by dubizzle.
Research reveals that the annual rents and sale prices have witnessed a general increase across the real estate market in the city.
“Dubai’s real estate market rolled into 2023 in emphatic style, with many of the record-shattering numbers of 2022 already being broken again in 2023. The dubizzle sales trend data shows affordable areas are now feeling the uplift from the influx of the luxury sector, with key high-end districts also recording rising prices amidst immense interest from investors and property-seekers,” Fibha Ahmed Director of Sales Bayut and dubizzle told Arabian Business.
“With rents continuing to rise, the logical factors for buying are becoming increasingly hard to ignore. Factor in multiple long-term visa schemes, developers with numerous financial offerings, as well as a vibrant stock of properties, and it becomes clear that all the ingredients are in place to create the buoyant market we’ve seen thus far in 2023,” she added.
Average prices across affordable and luxury apartments ranged from AED466,000 to AED5.45 million in the first half of this year. On the other hand, luxury and affordable villa prices was recorded between AED1.4 million to AED42.1 million.
Jumeirah Village Circle (JVC) has emerged as the most searched area for affordable properties, seeing an increase of over 8 percent in price per-square-foot.
Jumeirah Lakes Towers (JLT) has recorded the highest increase in price per-square-foot at a whopping 15.83 percent.
Residents searching for villas have shown demand for DAMAC Hills 2 (Akoya by DAMAC) and Dubai Hills Estate.
Those seeking for luxury villa rentals have expressed increasing demand for Al Barsha.
Palm Jumeirah continues to remain the area of interest for luxury properties.
Short-term rentals are also a prevalent residential option in the market with Dubai Marina and Bur Dubai emerging as top neighborhoods.
Luxury apartments: Dubai Marina continues to shine
Dubai Marina has retained its status as the most sought-after area for luxury apartment buyers, with an average sales price of AED2.25 million and a Return on Investment (ROI) of 7.19 percent.
While Dubai Marina remains favourable, other luxury areas have seen significant increases in per-square-foot prices. Business Bay, Downtown Dubai, and Palm Jumeirah experienced price hikes of 14.04 percent, 10.18 percent, and an impressive 31.96 percent, respectively.
The sale prices of studio, one-bedroom, two-bedroom, and three-bedroom apartments have also seen an upward trajectory in these areas.
Affordable apartments: Jumeirah Village Circle tops the list
For those in search of affordable apartments, Jumeirah Village Circle (JVC) has emerged as the most popular area, offering an average sales price of AED893,000 and an ROI of 7.69 percent.
Other budget-friendly areas that garnered tenant interest include Dubai Silicon Oasis, Jumeirah Lake Towers (JLT), International City, and Dubai Sports City.
Luxury villas: Dubai Hills Estate dominates
For buyers seeking luxury villas, Dubai Hills Estate proved to be the most preferred area during H1 2023. The average sales price of villas in Dubai Hills Estate stood at AED14.3 million, promising an estimated ROI of 5.13 percent. DAMAC Hills, Arabian Ranches, Palm Jumeirah, and Jumeirah Park were also popular choices among high-end villa buyers.
Similar to luxury apartments, per-square-foot prices of luxury villas have witnessed substantial increases in Palm Jumeirah (16.85 percent), Jumeirah Park (8.29 percent), DAMAC Hills (7.72 percent), and Arabian Ranches (1.55 percent).
Affordable villas: DAMAC Hills 2 takes the lead
Among the affordable villa options, DAMAC Hills 2 (Akoya by DAMAC) emerged as the top choice for buyers, with an average sales price of AED1.4 million and a promising ROI of 6.47 percent. Other sought-after areas for affordable villas included Dubailand, Jumeirah Village Circle (JVC), Al Furjan, and Dubai South.
The per-square-foot price of affordable villas has also shown an increase in Dubailand (8.32 percent), JVC (11.72 percent), Al Furjan (6.11 percent), and Dubai South (6.69 percent.
Rental trends: Dubai Marina and JVC
For those looking to rent luxury apartments on a yearly basis, Dubai Marina remained the most favored area.
However, the average annual rent in Dubai Marina increased by 12.50 percent, reaching AED144,000 for H1 2023. Business Bay, Downtown Dubai, Jumeirah Beach Residence (JBR), and Dubai Hills Estate also attracted tenant interest for yearly luxury rentals.
Dubai Marina also retained its popularity for monthly rentals of luxury apartments, although the average rent experienced a slight drop of 10.72 percent. Other popular areas for monthly rentals included Jumeirah Village Circle (JVC), Al Nahda, Bur Dubai, Deira, and International City.
For villa rentals, Al Barsha emerged as the most popular area for luxury villas, experiencing a notable 21.04 percent increase in average annual rent. Palm Jumeirah remained a preferred option for monthly luxury villa rentals, although the average rent decreased slightly from AED127,000 to AED124,000 in H1 2023.
In the affordable villa category, DAMAC Hills 2 (Akoya by DAMAC) continued to attract tenants, with an average annual rent of AED88,000. Other popular areas for affordable villa rentals included Mirdif, Dubai South, Jumeirah Village Circle (JVC), and Dubailand.
Haider Ali Khan, the CEO of Bayut and dubizzle and the Head of dubizzle Group MENA said, “There is absolutely no doubt that we have had an incredibly strong start to 2023. We have seen traffic rise across the board and the market is clearly on a positive trajectory. Contrary to the circumstances in most global markets, Dubai has continued to show resilience and grown by around 7 percent post-pandemic.
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