Bayut & dubizzle, the UAE’s leading property portals have released their collective Dubai Property Market Report for H1 2022. The data from the powerhouse portals revealed that prices in Dubai’s property sector have further appreciated in prominent neighbourhoods across the city. Given the impressive start to 2022, the growth in sale and rent prices in Dubai are indicative of healthy demand for property in both the affordable and luxury segments of the market.
- Based on Bayut & dubizzle’s combined data the sales prices for villas and apartments in the most searched for locales of Dubai have experienced increases of 1% to 19% in H1 2022.
- Potential investors interested in affordable villas and apartments have been inclined towards areas like Business Bay, DAMAC Hills 2, Dubailand and Jumeirah Village Circle (JVC). Luxury property buyers have paid more attention to well-established communities like Arabian Ranches, Downtown Dubai, Dubai Hills Estate and Dubai Marina in H1 2022.
- Prices for reasonably-priced rental apartments in Dubai’s highly searched for areas have recorded increases of up to 21%, while the rental costs for luxury flats have appreciated by up to 43%. Villa properties in the affordable segment have gone up by 29%, whereas areas with upscale villas have experienced upticks of up to 30% in rental costs.
- Tenants in search of affordable housing have shown a preference for the apartments in Jumeirah Village Circle (JVC) and Business Bay, while Mirdif and DAMAC Hills 2 have been popular for budget villa rentals. For luxury rental homes, tenants have shown an inclination towards Dubai Marina and Downtown Dubai for apartments, while Al Barsha and Jumeirah have been popular choices for villas.
- Based on the data released by Dubai Land Department, the emirate recorded 14,576 residential property sales transactions worth AED 33.06B during H1 2022. This could be attributed to the increased demand from new expats, seeking long-term residence visas through property investment.
Properties for Sale
For luxury apartment sales in Dubai, Dubai Marina has remained a firm favourite among buyers and investors.
- The sales priceper-square-foot for apartments in Dubai Marina has experienced an uptick of 5.96%, averaging at AED 1,459 in H1 2022.
- Other popular areas include Downtown Dubai, Palm Jumeirah, Jumeirah Beach Residence and Dubai Hills Estate. The average sale priceper-square-foot for all these communities have appreciated by up to 7%.
For reasonably-priced flats, the search trends observed at Bayut and dubizzle reveal that Jumeirah Village Circle has continued to be the most attractive option for prospective investors.
- Flats in Jumeirah Village Circle have recorded an average sales priceper-square-foot of AED 872 in H1 2022, following an uptick of 2.82%.
- Prospective buyers of affordable buyto-let apartments in Dubai have also searched for units in neighbourhoods like Business Bay, Jumeirah Lake Towers and Dubai Sports City. These residential districts have recorded increases of between 3% to 7% in average sales priceper-square-foot. Another long standing favourite, Dubai Silicon Oasis has experienced a marginal dip of under 1% in priceper-square-foot, during H1 2022.
According to the collective data from Bayut & dubizzle, average prices for luxury villa sales in Dubai have increased across the board for popular districts in H1 2022.
- Arabian Ranches has continued to be the most popular community for buyto-let luxury villas in Dubai, during the first half of 2022. The sale priceper-square-foot for villas in Arabian Ranches has experienced an uptick of 2%, averaging at AED 1,205.
- The buyto-let villas in Dubai Hills Estate have also garnered considerable buyer interest. The average priceper-square-foot for villa properties in this area has appreciated by 11.13% in H1 2022, averaging at AED 1,489.
- The upscale Palm Jumeirah district and the suburban neighbourhoods of The Villa and Arabian Ranches 2 have also recorded price upticks of 2% to 19%.
In H1 2022, DAMAC Hills 2 (Akoya Oxygen) has continued to top the charts for buyer preferences when it comes to affordable villas in Dubai.
- The average sale priceper-square-foot for DAMAC Hills 2 villas has experienced a minor increase of 1.27% to average at AED 612.
- Dubailand has also been a popular choice for buyto-let villas in the affordable category. The priceper-square-foot for villas in this suburban community has also reported an increase of 5.71%, to stand at AED 816 in H1 2022.
- Other suburban districts like Jumeirah Village Circle, DAMAC Hills and The Springs have also reported appreciations of 1% to 8% during H1 2022.
Rental Yields in Dubai
- For affordable apartments, Dubai Sports City has remained the most lucrative option with projected rental yields of 8.04%.
- Based on projected rental yields, the luxury apartments in Dubai Marina have generated the most attractive projected returnon-investment of 6.97% in H1 2022.
- DAMAC Hills with its projected ROI of 6.53% has been the investor favourite for budget homes.
- Arabian Ranches 2 have generated healthy rental returns of 6.12% for luxury properties, during the first half of 2022.
Off-plan Projects in Dubai
- When it comes to budget properties, District 10 in JVC has attracted the most investor interest for offplan apartments, whereas buyers looking for budget off-plan villas have been most keen on Rukan in Dubailand.
- When it comes to luxury properties, Sobha Hartland in Mohammed Bin Rashid City has garnered the most investor interest for offplan apartments, whereas buyers in search of off-plan upscale villas have been most inclined towards Elan in Tilal Al Ghaf.
- As per the combined data released by Bayut & dubizzle, Aykon City in Business Bay has been the most preferred offplan apartment development in the luxury segment. Investors in search of expensive off-plan villas have centred their search on Portofino in DAMAC Lagoons.
Properties for Rent
Tenants in search of affordable apartments for rent in Dubai have preferred the properties in Jumeirah Village Circle (JVC) in H1 2022.
- The rental costs for flats in JVC have increased by 7% to 16%, averaging at AED 34k for studios, AED 48k for 1bed and AED 70k for 2-bed units.
- Al Nahda, Bur Dubai, Business Bay and Deira have also emerged as popular options for affordable apartment rentals in the emirate. The average asking rents for flats in these areas have generally increased by 2% to 21%.
According to the search trends on Bayut & dubizzle, Dubai Marina has remained the top favourite for tenants interested in expensive apartment rentals in H1 2022.
- The asking rent for flats in Dubai Marina have experienced significant increases of 16% to 22% during H1. The cost of renting a 1bed flat has averaged at AED 88k, whereas 2 and 3-bedroom flats have been priced at AED 133k and AED 195k on average.
- Average rental costs for apartments in Downtown Dubai have experienced upticks of 3% to 43%. The highest price jump has been reported for 2bed units, which could be attributed to the increased number of Elite Downtown Residence and Armani Residence properties being listed for rent. The average rentals for flats in Palm Jumeirah have also recorded increases of up to 22% in H1 2022.
- Besides Dubai Marina, Downtown Dubai and Palm Jumeirah, renters have shown interest in the rental properties in Jumeirah Beach Residence (JBR) and Dubai Hills Estate during H1 2022. The price trends observed on Bayut & dubizzle show that the rental costs of 1 and 3bed units in both areas have recorded appreciations of up to 33%. The 2-bed flats however, have seen price declines of under 3%.
According to Bayut & dubizzle’s combined market report, popular villa communities in the affordable segment have seen a general uptrend in rental costs in H1 2022.
- Mirdif has remained the most preferred area for potential tenants in search of affordable villa rentals. The rental costs for villas in Mirdif have appreciated across the board by up to 7%, averaging at AED 91k for 3bed, AED 115k for 4-bed and AED 124k for 5-bed units.
- DAMAC Hills 2 has also been a popular option for tenants looking for affordable houses in Dubai. During H1 2022, the area has recorded moderate fluctuations of up to 5% in rental costs for 4 and 5bed units. The price for 3-bed rental homes in DAMAC Hills 2 has remained unchanged at AED 58k.
- Renters have also been inclined towards the affordable properties in other suburbs areas like JVC, Dubailand and The Springs. These locales have reported price increases of up to 29%. The only exceptions have been the 3 and 4bed units in Dubailand and 5-bed villas in JVC, which became more affordable by 1% to 13%.
For luxury villa rentals, Al Barsha has emerged as the most popular area among prospective tenants, during H1 2022.
- The rental value for villas in Al Barsha have reported upticks of up to 15% for 4 and 5bed units, which respectively average at AED 203k and AED 290k. The average rental costs for 6bed rental villas in Al Barsha has decreased by 3.26% to stand at AED 383k in H1 2022.
- Jumeirah has also continued to attract highincome tenants. Prices for rental villas in Jumeirah have increased by 14% to 17%.
- Potential tenants interested in expensive villa properties have also shown keenness for highend areas like Dubai Hills Estate, Umm Suqeim and Arabian Ranches. The rental costs for villa properties in these areas have experienced general upticks of 4% to 30%, with price decreases recorded for certain bed types.
Commenting on the findings, Haider Ali Khan, the CEO of Bayut & dubizzle and the Head of EMPG MENA said:
“Over the first half of this year, many pivotal changes have been taking place both within the region and globally. With the focus on safety and security being understandably high, Dubai has stood out as an appealing option particularly for international investors and expat owners. Within Bayut & dubizzle, we have had over 35M sessions in the last six months alone from property seekers interested in Dubai real estate.
With more attention coming to the market, the need to become transparent and more technologically advanced is also clear. Earlier this year DLD made all transaction data publicly available and in the past few weeks there have been some strategic decisions around moving away from cheques to offer direct debit payments; both positive moves in line with the evolving needs of the growing population of Dubai. With innovation in mind, we too have launched our next generation property search experience, Search 2.0 on Bayut to allow people to have a more well rounded and thorough browsing experience that factors in their two most important commute points. Owing to these advancements from both the public and private sector, the interest in Dubai real estate is more likely to continue to remain high in the coming months too.”