The UAE’s leading property portal, Bayut has published its Dubai Property Market Report for Q1 2023, revealing the most searched areas in the emirate’s real estate sector. According to the search trends observed on the powerhouse portal, prices in Dubai’s property sector have increased across popular neighbourhoods favouring sellers and landlords. This ongoing boom in prices has been backed by a steady demand for properties in Dubai’s affordable and luxury segments.
- Based on the data from Bayut, sales prices for apartments and villas in the most prominent neighbourhoods of Dubai have increased by 3% to 24% in Q1 2023.
- Potential buyers in search of affordable apartments and villas have focused on areas such as Jumeirah Village Circle (JVC), Jumeirah Lake Towers, DAMAC Hills 2 and The Springs, while prospective investors have searched for properties luxury properties in Dubai Marina, Downtown Dubai, Palm Jumeirah and The Villa in Q1 2023.
- Prices for affordable apartment rentals in Dubai’s popular areas have recorded increases of up to 24%, whereas the cost of luxury apartment rentals has significantly appreciated by up to 68%. Prominent neighbourhoods with reasonably-priced villas have experienced upticks of 2% to 59%, whereas asking rents in areas with luxury villa properties have increased by up to 89%.
- Tenants looking for affordable accommodation have searched for units in Jumeirah Village Circle (JVC) and Bur Dubai for apartments, while those interested in villas have mainly focused on properties in Mirdif and DAMAC Hills 2. In the luxury segment, Dubai Marina and Business Bay have been the most popular options for apartment rentals, whereas Umm Suqeim and Jumeirah have attracted the most tenants searching for expensive villas.
- Based on the data released by Dubai Land Department, the emirate recorded 30,767 residential property sales transactions worth AED 87.9B during Q1 2023.
Properties for Sale
Dubai Marina has continued to be the most searched-for area for luxury apartment sales in Dubai.
- The average sales priceper-square-foot for flats in Dubai Marina has increased by 12.5%, averaging at AED 1,529 during Q1 2023.
- Buyers in search of upscale apartments have also gravitated towards properties in Downtown Dubai, Palm Jumeirah, Business Bay and Mohammed Bin Rashid City. The average sales priceper-square-foot in these communities has appreciated by up to 16%. Most of these price hikes have been consequent to the increased demand for properties in these areas.
Based on the search trends observed on Bayut, Jumeirah Village Circle has remained the top choice among investors interested in affordable apartments in Dubai.
- Apartments in Jumeirah Village Circle have recorded an appreciation of 7.83% in sales priceper-square-foot, to average at AED 908 in Q1 2023.
- Other areas that have appealed to investors for affordable apartments include Jumeirah Lake Towers, Dubai Silicon Oasis, International City and The Greens. There has been a 3% to 11% appreciation in the average sales priceper-square-foot in these areas, with the highest increase observed in Jumeirah Lake Towers.
Based on the data compiled by Bayut, the average sales price for luxury villas in Dubai has continued to increase in the most-searched-for districts during Q1 2023.
- Palm Jumeirah has been the top choice for investors interested in buyto-let luxury villas in Dubai, during Q1 2023. The sales priceper-square-foot for villas in Palm Jumeirah has averaged at AED 3,711, following an increase of 23.3%.
- Houses in The Villa have also attracted highnet-worth buyers. The average priceper-square-foot for villas in this district has appreciated by 11.6% in Q1 2023, to stand at AED 872.
- Investors and buyers also showed interest in the expensive villas available in Arabian Ranches, Dubai Hills Estate and The Meadows. Prices in these areas have recorded upticks of up to 18%. The most prominent movement in prices was observed in Dubai Hills Estate, which could be in response to the increased demand in the area.
Buyers and investors interested in reasonably-priced villas in Dubai have continued to favour DAMAC Hills 2 in Q1 2023.
- The sales priceper-square-foot for villas in DAMAC Hills 2 has increased by 3.05%, to average at AED 627.
- The Springs has also emerged as a popular choice for investors in search of affordable buyto-let villas in Dubai. The average priceper-square-foot for villas in The Springs has increased by 7.59%, to stand at AED 1,162 in Q1 2023.
- Prospective buyers have also gravitated towards the affordable villas in Dubailand, Jumeirah Village Circle and Mudon. Prices in these neighbourhoods have recorded upticks of 6% to 7% during Q1 2023.
Rental Yields in Dubai
- For budgetfriendly apartments in Dubai, International City has generated the most attractive returnon-investment of 9.16% in Q1 2023.
- The luxury buyto-let apartments in Dubai Marina have offered the healthiest projected rental yields of 6.91%.
- Offering projected rental returns of 6.90%, Jumeirah Village Circle has been one of the best options for investing in affordable buyto-let villas, during Q1 2023.
- Dubai Hills Estate with a projected ROI of 6.16% has offered the highest rental returns for luxury villas.
Off-plan Projects in Dubai
- In the affordable segment, District 10 in JVC has appealed the most to investors for offplan apartments. Those looking for reasonably-priced off-plan villas have focused on Villanova in Dubailand.
- As per the data released by Bayut, Urban Oasis by Missoni in Business Bay has emerged as the most popular offplan development for luxury apartments in Dubai, whereas Alaya in Tilal Al Ghaf has been most preferred by those in search of luxury offplan villas.
Properties for Rent
For reasonably-priced rental flats in Dubai, potential tenants have continued to favour Jumeirah Village Circle in Q1 2023.
- The asking rents of apartments in JVC have increased by 15% to 24% during Q1 2023. On average, studio flats have been priced at AED 36k, whereas 1bedroom and 2-bedroom flats have been rented out for AED 51k and AED 73k, respectively.
- Potential tenants have also shown an inclination towards the flats in Bur Dubai, Deira, Al Nahda and Dubai Silicon Oasis. Asking rents for apartments have appreciated by 6% to 19%. The most prominent increase in rental costs have been observed in Dubai Silicon Oasis, which may be consequent to the increased demand for properties in the area.
Based on the search trends observed on Bayut, prospective tenants in search of luxury apartments in Dubai have continued to seek properties in Dubai Marina during Q1 2023.
- The rental costs for flats in Dubai Marina have appreciated by up to 39%. In Q1 2023, the asking rents for apartments in Dubai Marina averaged at AED 91k for 1bed, AED 139k for 2-bed and AED 207k for 3-bed units.
- Other areas popular among potential tenants in search of luxury apartment rentals include Business Bay, Downtown Dubai, Palm Jumeirah and Mohammed Bin Rashid City. These areas have reported price hikes of up to 68% during Q1 2023. The most significant increase was observed in Downtown Dubai, following the muchanticipated handover of the Burj Royale units. Palm Jumeirah and Mohammed Bin Rashid City, with their limited inventory, also witnessed noticeable increases in rental costs, particularly for 3-bed units.
In the affordable segment, Mirdif has emerged as the top choice for potential tenants in search of villas, during Q1 2023.
- The asking rents for villas in Mirdif have increased by up to 15%, averaging at AED 98k for 3bed, AED 118k for 4-bed and AED 134k for 5-bed houses, during Q1 2023.
- DAMAC Hills 2 has also been a popular option for tenants in search of reasonablypriced houses in Dubai. During Q1 2023, the district recorded price hikes of up to 9% for 3bed and 5-bed villas, which averaged at AED 63k and AED 73k respectively. Valued at AED 98k, the 4bed houses in DAMAC Hills 2 became more affordable by 6.18%.
- Tenants in search of affordable villa properties have also considered areas like Reem, Dubailand and Jumeirah Village Circle. The average rents for houses in these neighbourhoods have recorded general upticks of 2% to 59%. The 5bed houses in Dubailand recorded the most significant increase in the average rental costs in response to the increasing demand.
According to Bayut’s real estate market report, luxury villa rentals across popular neighbourhoods in Dubai have seen significant appreciations in annual costs during Q1 2023.
- Umm Suqeim has emerged as the top choice for luxury villa rentals in Dubai. The asking rents for houses in Umm Suqeim have experienced upticks of 25% to 50% across all bed types. In Q1 2023, the average rent stood at AED 271k for 4bed, AED 315k for 5-bed and AED 474k for 6-bed units.
- Jumeirah has remained a favoured option for highincome tenants. The asking rents for villas have appreciated by up to 54%. During Q1 2023, the rental costs for 4bed houses in Jumeirah averaged at AED 273k. The 5-bed houses have been rented out for AED 331k, whereas the 6-bed houses were priced at AED 460k.
- Potential tenants have also shown an inclination toward the expensive villas in Dubai Hills Estate, Palm Jumeirah and Arabian Ranches 2. These districts have reported price increases of 5% to 89%, with landlords pricing their properties higher to benefit from increasing demand. The highest appreciation in rental costs was recorded for properties in Dubai Hills Estate, where the influx of inventory from Club Villas, Maple, Sidra Villas, Golf Place and Parkway Vistas drove the prices upwards.
Commenting on the findings, Haider Ali Khan, the CEO of Bayut & dubizzle and the Head of EMPG MENA said:
“I think there is absolutely no doubt that Dubai is experiencing a property boom unlike any other, while leading global economies are reeling under financial strains. Backed by a growing economy full of opportunity, not only has Dubai become a brand to be reckoned with, thanks to the safety, infrastructure, government support and overall positive outlook of the emirate, the city has also very successfully strengthened its hold as a popular metropolis, everyone in the world wants to be associated with.
Feels like a lot of talented people from all walks of life across the globe are making their way to Dubai, resulting in an obvious demand for real estate in the city. Interest for lease and sale in various communities is on the rise, with traffic growing every month. We are attracting over 7M visits each month for properties in Dubai alone on Bayut, and the number just keeps growing by the day, which shows how much trust and demand there is for the Dubai real estate market!”