Bayut, the leading property portal in the UAE, has released its latest data on the most popular areas in Dubai’s real estate market for the third quarter of 2024. The figures highlight that property prices in key Dubai neighbourhoods have continued to rise, driven by strong demand, solid sales, and an influx of new listings, sustaining growth into the coming year.
Buying Trends in Dubai Real Estate
The report shows promising price increases across Dubai’s prominent areas for both apartments and villas. Villas in Arabian Ranches saw a significant jump, with prices rising by up to 13% in Q3 2024. In contrast, buyers with more budget-friendly preferences are focusing on locations like International City, Dubai South, DAMAC Hills 2, and Dubailand. Mid-range buyers continue to show interest in areas such as Jumeirah Village Circle, Jumeirah Lake Towers, Al Furjan, and Reem. On the high-end, luxury buyers have targeted spots like Dubai Marina, Business Bay, DAMAC Hills, and Dubai Hills Estate.
The transactional prices for affordable apartments in frequently searched areas have generally decreased by as much as 11%. However, villas in Dubailand saw a sharp rise in prices, nearly 20%, reflecting growing interest in more affordable homes. In the mid-tier market, both apartment and villa prices have gone up by as much as 8%. Luxury property prices, meanwhile, have consistently risen, with increases ranging from 3% to 31%, the highest being in Dubai Hills Estate.
Bayut’s data, sourced from the Dubai Land Department (DLD), shows that over 48,000 property sale transactions were recorded in Q3 2024, with a total value exceeding AED 120 billion. Of these, more than 16,000 were in the ready segment, valued at AED 51 billion, while over 32,000 transactions took place in the off-plan segment, contributing over AED 70 billion in value.
ROI for Dubai Properties
In terms of ROI, affordable apartments in areas like Dubai Investments Park, Discovery Gardens, and Liwan have generated the highest returns, ranging from 9% to 11%. Mid-tier properties in Dubai Sports City, Dubai Silicon Oasis, and Town Square offer returns of over 8.6%. Luxury apartment investors in locations such as Al Sufouh, DAMAC Hills, and World Trade Centre have seen yields of 7% to 9%.
For affordable villa investments, communities like DAMAC Hills 2, International City, and Serena offer returns exceeding 6%. Mid-tier villa communities such as Jumeirah Village Circle, Dubai Sports City, and Jumeirah Village Triangle yield between 6% and 9%. In the high-end market, returns in places like Al Barari and Tilal Al Ghaf surpass 6%, while Jumeirah Golf Estates and Al Barari offer up to 6%.
Rental Market Trends
Rental prices have shown substantial growth in various categories. Affordable apartment rents have increased by as much as 28%, with the largest surge seen in one-bedroom flats in Deira. Mid-range apartment rentals have risen by up to 12%, while luxury apartment rents showed more moderate growth, with increases up to 9%. There were minor declines, however, in Business Bay and Dubai Marina, where one and two-bedroom rentals dropped slightly by less than 4%.
Budget villa rentals rose by up to 10%, though five-bedroom units in popular districts saw price drops of up to 11%. In the mid-tier market, villa rentals surged as much as 42%, with the highest increase recorded for four-bedroom properties in Al Furjan. Luxury villa rentals climbed by up to 15%, with Jumeirah experiencing the most significant rise due to the limited availability of five-bedroom homes.
Affordable rental hotspots include Deira and International City for apartments, while DAMAC Hills 2 and Mirdif have drawn interest for villas. Mid-tier apartment rentals in Jumeirah Village Circle and Bur Dubai remain popular, while JVC and Al Furjan lead the demand for mid-range villas. In the luxury rental segment, Dubai Marina and Business Bay continue to attract tenants for apartments, with Dubai Hills Estate and Al Barsha being top choices for luxury villas.
Across the board, transactional rental prices for apartments and villas have generally risen by 1% to 14% in affordable areas. Mid-range and luxury properties have seen increases of up to 10%.
Dubai’s Real Estate Outlook
Dubai’s property market is currently experiencing a surge in demand, fuelled by factors such as economic growth, a rise in foreign investments, and a thriving tourism industry. Developers are keeping pace with market demand, with no signs of an oversupply issue in the near future. This momentum is expected to carry forward over the next four to five years, particularly in the luxury and mid-tier property segments.
Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA, commented on the trends, highlighting the ongoing strength of the market. He attributed the growth to balanced supply and demand, steady investments, and advancements in property technology.
This report is based on average prices per square foot to compare trends from Q3 2024 with Q2 2024 for villas and apartments, and rental data reflects the average cost of individual unit types between the two periods in popular Dubai neighbourhoods.
Original article reference: Zawya.
