Following a landmark year in 2022, Dubai’s real estate has continued its upward trajectory during the first half of 2023.
dubizzle, the UAE’s trusted platform for property seekers and sellers, has recently shared an analysis of search trends on the portal in the last six months. The report highlights the areas that have remained popular among users, along with an analysis of the average asking and rental prices of properties in these areas.
According to dubizzle’s analysis, the annual sales and rental prices of affordable and luxury apartments have generally increased in the Dubai real estate market.
● The average sales price of affordable and luxury apartments in the first six months of 2023 ranged between AED 466k to AED 5.45M.
● For luxury and affordable villas, the advertised sales prices in the five most popular areas ranged between AED 1.4M to AED 42.1M.
● Jumeirah Village Circle (JVC) has remained the most searched area to buy affordable apartments. The per-square-foot price of apartments in the area increased by 8.07%.
● Jumeirah Lake Towers (JLT) witnessed the highest change of 15.83% in the per-square-foot price of affordable apartments.
● People looking for villas have mainly searched in DAMAC Hills 2 (Akoya by DAMAC)for affordable and Dubai Hills Estate for luxury villas.
● DAMAC Hills 2 (Akoya by DAMAC) has also been the most popular area for renting affordable villas on an annual and monthly basis.
● When searching for luxury villa rentals, a majority have focused on Al Barsha.
● Palm Jumeirah has remained the preferred area for renting a luxury villa on a monthly basis.
● Tenants looking for an affordable monthly apartment have opted for International City.
● Dubai Marina has topped the list of luxury areas to rent apartments on a monthly and daily basis during the first six months of 2023.
● Bur Dubai has emerged as the most popular affordable area for renting apartments on a daily basis.
● dubizzle has witnessed an increase in listings for properties in different areas of Dubai like Jumeirah Village Circle (JVC), Jumeirah Lake Towers (JLT) and International City. Although fresh inventory has come into the market in these areas, continued demand has also fuelled price increases in the last six months in most areas.
Properties for Sale
Overall, the property prices and the ROI have increased in Dubai during the first half of 2023. All the popular areas have offered more than 5% rental yields making it an attractive option for investors.
Apartments
Dubai Marina has remained the most popular area for buying luxury apartments with an average sales price of AED 2.25M and an ROI of 7.19%. People looking for luxury apartments have also searched in Business Bay, Downtown Dubai, Palm Jumeirah and Jumeirah Beach Residence (JBR).
● Business Bay, Downtown Dubai and Palm Jumeirah have witnessed increases of 14.04%, 10.18% and 31.96% respectively in the per-square-foot prices of luxury apartments.
● An upward trajectory has also been observed in the sales prices of studio, 1, 2, and 3-bedroom apartments in the above-mentioned areas.
According to the dubizzle’s consumer trends, Jumeirah Village Circle (JVC) has remained the most popular area for buying affordable apartments. The sales price of apartments in JVC has averaged at AED 893k, with an ROI of 7.69%.
● Besides JVC, Dubai Silicon Oasis, Jumeirah Lake Towers (JLT), International City and Dubai Sports City have also garnered the interest of tenants seeking affordable apartments.
● Similar to luxury areas, the per-square-foot price of affordable apartments has also increased. The highest change of 15.83% has been observed in prices of JLT where the average price per square foot has been around AED 1,246.
● The average per-square-foot prices of International City and Dubai Sports City have increased by 12.33% and 7.22%, respectively.
Villas
Dubai Hills Estate has been the most preferred area to purchase luxury villas during H1 2023. The average sales price of villas in Dubai Hills Estate has been AED 14.3M with an estimated ROI yield of 5.13%.
● Similar trends have been observed in other popular areas including DAMAC Hills, Arabian Ranches, Palm Jumeirah and Jumeirah Park.
● Palm Jumeirahhas witnessed the highest shift of 16.85%. Whereas, Jumeirah Park, DAMAC Hills and Arabian Ranches have observed an increase of 8.29%, 7.72% and 1.55% in the per-square-foot prices, respectively.
DAMAC Hills 2 (Akoya by DAMAC) has topped the list of popular areas for buying affordable villas with an average sales price of AED 1.4M and an ROI of 6.47%.
● For affordable villas, users have also shown interest in Dubailand, Jumeirah Village Circle (JVC), Al Furjan and Dubai South.
● The per-square-foot price of affordable villas in Dubailand has increased by 8.32%. The trend has remained similar in JVC, Al Furjan and Dubai Southwhere the per-square-foot price of affordable villas witnessed a rise of 11.72%, 6.11% and 6.69%.
Properties for Rent
Apartments
Along with yearly rentals, users have shown interest in monthly and daily rentals in Dubai. For the yearly rental of luxury apartments, Dubai Marina has remained the most favoured area.
● The average annual rent of Dubai Marina increased by 12.50%, making it AED 144kfor H1 2023.
● Tenants looking for luxury apartments on a yearly basis also searched for Business Bay, Downtown Dubai, Jumeirah Beach Residence (JBR) and Dubai Hills Estate.
Dubai Marina has also remained popular among tenants for monthly rentals of luxury apartments.
● The monthly rent of Dubai Marina dropped by 10.72% and averaged at AED 13K. A dip has also been observed in the other popular areas for monthly rentals.
Jumeirah Village Circle (JVC), Al Nahda, Bur Dubai, Deira, and International City have been the most popular areas among users seeking affordable apartments.
● Witnessing an increase of 17.31%, Jumeirah Village Circle (JVC) has topped the list of affordable apartments with an average annual rent of AED 61k.
International City, with an average rent of AED 2.8K, has been the area most searched by people seeking affordable apartments on a monthly basis,
● International City is followed by Jumeirah Village Circle (JVC), Bur Dubai, Al Barsha and Discovery Gardens.
Villas
dubizzle’s H1 report for the Dubai property market indicates that Al Barsha has been the most popular area for renting luxury villas.
● The average annual rent of Al Barsha has increased by 21.04%, making it AED 374k for H1 2023.
● Jumeirah, Dubai Hills Estate, Arabian Ranches 3 and DAMAC Hills have also been on the list of most searched areas for renting luxury villas.
● Palm Jumeirah has remained a preferred option to rent luxury villas on a monthly basis. However, the average monthly rent of villas in Palm Jumeirah has witnessed a drop from AED 127k to AED 124k in H1 2023.
In the affordable villa category, DAMAC Hills 2 (Akoya by DAMAC) has topped the list with an average annual rent of AED 88k.
● Other popular areas have included Mirdif, Dubai South, Jumeirah Village Circle (JVC) and Dubailand.
● DAMAC Hills 2 (Akoya by DAMAC) has also remained a popular choice among tenants for monthly rentals, with an average rent of AED 13.4K.
Commenting on the findings, Haider Ali Khan, the CEO of Bayut & 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% post pandemic.
