Bayut, the largest real estate inventory for commercial space and rental property has released an H1 report of the Dubai Property Market Report. The report has been shared based on the locations searched by the residents for the maximum number of times.

Referring to the consumer research report on the portal, Dubai property prices have started increasing in various parts of many popular districts. Which leads to setting a favorable market for all the property owners and sellers. Several factors contribute to this sustained growth in Dubai property prices, including high demand from local and international property investors for affordable and luxurious properties around.

Based on the Dubai Rental Market Report H1 2023, Popular Locations to Rent an Apartment or Villa:

Luxurious Apartments:

  • Dubai Marina
  • Business Bay
  • Downtown Dubai

Affordable Apartments:

  • Bur Dubai
  • JVC (Jumeirah Village Circle)
  • Al Nahda

Luxurious Villas:

  • Jumeirah
  • Al Barsha
  • Dubai Hills Estate

Affordable Villas:

  • Mirdif
  • Dubai South
  • Damac Hills 2

Property selling prices in the neighbourhood locations searched by the buyers for the maximum number of times have taken a peek of 1% to 17% in H1 2023, based on Bayut’s property data.

Likely most of the property investors are in search of affordable villas in Jumeirah Lake Towers, Jumeirah Village Circle (JVC), Al Furjan, and DAMAC Hills, while property investors with high net worth are mainly focusing on areas like Downtown Dubai, Dubai Marina, Dubai Hills Estate and Arabian Ranches during H1 2023.

There has been a 17% increase in the rent of affordable apartments in Dubai’s key areas, whereas 32% has been an increase in the rent of luxury apartments. In the popular surrounding neighbourhood, the rental prices got increased by 50% and 70% for affordable villas and luxurious villas respectively.

Potential tenants have shown the most interest in areas like Bur Dubai, JVC (Jumeirah Village Circle), and Al Nahda for affordable apartments, whereas others are mostly searching in Dubai Marina, Business Bay, and Downtown Dubai for luxury apartments.

In search of affordable villas around most searched areas are Mirdif, Dubai South, and Damac Hills 2. Jumeirah, Al Barsha, and Dubai Hills Estate are the major famous areas for luxury villas according to Bayut’s report.

Dubai Land Department shared data shows Dubai recorded a sale worth AED 179.3 Billion, against 60,927 properties sold in H1 2023.

Properties for Sale

Apartments:

Dubai Marina is still the first choice for buying a property in Dubai for investors.

  • The apartment price got increased during H1 2023 by 5.61% by DH1,679 per-square-foot. 
  • A maximum number of investors have shown interest in properties located in areas like Downtown Dubai, Palm Jumeirah,  Business Bay, and Jumeirah Beach Residence.
  • In these areas, the selling price goy increased by 13% per-square-foot. The price may increase more in these areas due to the high demand for property.

As per the report of the affordable property searched by the investors, Jumeirah Village Circle, JVC remains the fixed choice.

  • The apartment sales price in JVC has increased by 4.96% on average, it stands at DH 974 per square foot.
  • Equally, the investors are interested and searching for affordable apartments located in Jumeirah Lake Towers, Dubai Sports City,  Dubai Silicon Oasis, and International City, where the price range has increased by 1% to 7% per square foot. The Highest increase has been noticed at Jumeirah Lake Towers.

Villas:

As per the compiled data shared by Bayut, reflects the continuously raised price of luxurious villas across the most popular neighbourhood during H1 2023.

  • The increasing rate of villas touched 2.81% by  AED 1,316 per square foot on average
  • Properties located at Hills Estate of Dubai increased by 11.9%, which stand at  AED 1,316 per square foot.
  • High-priced villas located at DAMAC Hills, Palm Jumeirah, and Jumeirah Park are the most loved properties, and based on their popularity the price got increased by 17% per square foot. Among all Palm Jumeirah is the mostly searched location, and will remain on the list of most demanded areas.
  • At DAMAC Hills the price touched 6.25%, an average DH 684.
  • One most popular choices for investors who are looking for affordable villas, Jumeirah Village Circle is the popular choice. They can buy to-let-villas, where the price got increased by 6.43%, and stands at DH 714 per square foot in H1 2023.
  • In search of affordable villas, investors have shown interest in The Springs, where the land owners have increased the rated maximum due to its popularity. Apart from that Al Furjan and Reem are also other two popular spots, where the price increased by 5% to 11% in H1 2023.

Properties for Rent

Apartments:

For affordable rental flats in Dubai, people have shown maximum interest in properties located in Jumeirah Village Circle.

  • Due to its popularity, the rent increased between 15% to 18%. The average rent for a studio flat has been priced at AED 44K, and 1BHK and  2BHK have been priced respectively between AED 63k and AED 88k.
  • Areas like Bur Dubai, Al Nahda, Deira, and International City where the tenants have asked to pay rent which is increased by 6% to 16%, are under affordable apartments. Among all Al Nahda might remain the popular choice among the investors.

While choosing luxury apartments, Dubai Marina continued to be the most popular search in H1 2023.

  • Implemented rent asked by the owners increased by 14%. During H1 the average cost touched DH 107k, DH 155k, and DH 247k for 1BHK, 2BHK, and 3BHK respectively.
  • Some other popular locations for luxury villas are Palm Jumeirah, Downtown Dubai, Dubai Hills Estate, and Business Bay, where the hike touched up to  32% in H1 2023. Among all Dubai Hills Estate has seen the maximum sales, including Golf Suits and properties in Park Heights.

Villas:

In search of rented villas, tenants have shown the most interest in properties located at DAMAC Hills 2 in H1 2023.

  • In DAMAC Hills, the rent got increased by 42%, an average of AED 77k, AED 101k, and AED 121k for 3-bed, 4-bed, and 5-bed properties.
  • A direct price raise up to 13% for affordable rented villas in Mirdif, also appeared on the list of popular searches during H1 2023. It has cost  AED 112k for a 3-bed, AED 127k for a 4-bed, and AED 141k for a 5-bed, which might remain unchanged.
  • Tenants looking for affordable villas also have frequently checked where the rent range got increased between 2% to 50%.

Based on the real estate report shared by Bayut, the high-cost villas from various locations have made the maximum profit during H1 2023.

  • Among the most popular locations around Dubai Hills Estate has been founded as the most searched area for a luxury villa, the price range also increased by 2% to 26%, to an average of AED 319k and AED 1.77M, for 4-beds and 6-beds respectively. Rent for a 5-bed was AED 394K, during H1 2023.
  • Al Barsha was also a popular destination for high-cost premium villas, where the cost got increased by 23%. Their 4-bed unit cost AED 296k, and the 5-bed house got offered for AED 369k. Whereas the 6-bed units were priced at AED 457k.
  • DAMAC Hills, Jumeirah, and Arabian Ranches are listed as the most expensive locations for premium villas, where the rent increased by 70%. The highest rental villa sale record in DAMAC Hills.

Rental Yields in Dubai

  • The most valuable way to invest in buy-to-let apartments is to get a return of 9.04%.
  • Dubai Marina has seen the maximum return on investment of 7.25%, after charging high rentals for luxury villas.
  • For budget-friendly villas, the ROI rate touched 7.98% in Dubai during H1, 2023.
  • At DAMAC Hills, premium villas made a profit of 7.28% as an ROI.

Off-Plan Apartments in Dubai

  • JVC (Jumeirah Village Circle) was the most affordable section during H1 2023. JVC became the most loved location for least-payable apartments in Dubai. For tenants, who were looking for rented flats within an affordable range, off-planned villas were the best options in various locations.
  •  Emaar Beachfront in Dubai Harbour was the most valuable and popular location during H1 2023, for off-plan rented apartments according to the report shared data by Bayut.

Haider Ali Khan, the CEO of Bayut and the Head of Dubizzle Group MENA said, “Six months in, and we’re enjoying fabulous results. Prices are at a record high, traffic is steadily rising and transactions are also increasing month on month. A simple search of our new and improved Dubai Transactions tells you that the volume of sales transactions has gone up nearly 12% and value has increased by almost 20%.”

“There is a lot of positive movement of wealth into the UAE as evidenced by the much-talked-about millionaire migration. Multiple reports have also confirmed that HNWIs from various parts of the world have earmarked a substantial budget towards property investments in the UAE. We proactively launched our Chinese version in anticipation of this changing market dynamic and will follow it up with other innovations as well. We can also really see the supply vs demand dynamics playing out strongly in the rental market, with traditionally popular areas constantly being outpriced because of the supply crunch,” further he added.

He also explained, “The constant increase in rental prices has also prompted more people to take the plunge into homeownership, so the money they are allocating toward real estate ends up creating an asset in the long term. A strong focus on PropTech and transparency has also aided in creating a more positive outlook for the market overall, and we are excited to be a part of our city’s fantastic journey of growth.”