Bayut – Dubai Property – Sales and Rental Market Reports for 2024

●       Bayut’s data indicates a notable uptick in sales prices for apartments and villas across prominent neighbourhoods in Dubai, registering surges of between 4 and 21% in 2023.

●       In the affordable property segment, potential investors and home buyers have shown heightened interest in International City, Dubai Residence Complex, DAMAC Hills 2 and Dubailand. Property buyers with a mid-range budget have gravitated towards areas like Jumeirah Village Circle, Dubai Silicon Oasis, Al Furjan and The Springs. Conversely, luxury property investors have demonstrated a preference for Dubai Marina, Business Bay, Arabian Ranches and Dubai Hills Estate during 2023.

●       For budget-friendly apartments, transactional sales prices in sought-after areas have witnessed increments ranging from 5 – 50%. The average transaction prices for affordable villas have generally decreased by 10% to 26%, with the exception of DAMAC Hills 2, which recorded a minor increase of 0.54%.

●       In the mid-tier property segment, the average sales transaction prices for apartments have generally increased by up to 3%. Jumeirah Lake Towers has been an outlier, where the transactional sale price has decreased by 0.77%. Sought-after areas with mid-tier villas have reported 15 – 21% increase in average transaction sales price.

●       In the luxury property sector, most areas have seen a consistent appreciation in transactional prices of between 3% and 17%.

●       According to the Dubai Transactions on Bayut, the company’s proprietary insights system with detailed processed data based on DLD information, 2023 saw a total of 132,628 property sale transactions, amounting to a total value of AED 409.8 billion, including both residential and commercial purchases.

●       On examining the Return on Investment (ROI) based on projected rental yields for apartments, specific areas like DIP, Liwan and Discovery Gardens have emerged as the healthiest options for potential investors, offering yields of up to 11%. When it comes to apartments in the mid-tier segment, Dubai Silicon Oasis, Dubai Sports City and Motor City have been the most compelling options, offering rental yields of up to 9%. In the luxury apartment segment, areas like Al Sufouh, Green Community and Jumeirah Golf Estates have proven to be particularly attractive, delivering impressive returns of up to 10%, surpassing benchmarks set by most global markets.

●       Bayut’s ROI trends for villa communities also portray a positive outlook. Buy-to-let villas and townhouses in Al Rashidiya boast an average ROI exceeding 9%, making it an enticing prospect for potential investors. Similarly, areas such as International City and Jebel Ali are offering ROI percentages exceeding 8%. The mid-tier villas in JVC, Town Square and Reem have recorded projected ROIs of between 6% and 8%. In the luxury villa category, Al Barari stands out with an ROI surpassing 8%, driven by the unique characteristics of the properties and the limited supply in the market. Communities like Pearl Jumeirah and DAMAC Hills, catering to family needs, have also presented healthy ROIs exceeding 7%.

●       According to Bayut’s data, the advertised rental prices have surged by between 4 and 17% for affordable apartment rentals in sought-after areas. Asking rents for apartments in the mid-tier segment have recorded double digit increases of up to 23%. Asking prices for luxury apartment rentals have also witnessed an upward trajectory, with prices increasing by between 4 and 21%.

●       Reasonably-priced villas have generally experienced price upticks ranging between 10% and 33%, with rental houses in Dubai South becoming cheaper by up to 6%. Rental costs for mid-tier villas have experienced upticks of 1 – 21%. Luxury villa rentals in Dubai have surged by 38%.

●       Among those seeking affordable accommodations, Al Nahda and Deira have garnered the most attention for apartments, while Mirdif and DAMAC Hills 2 were the preferred choices for villa-seekers. In the mid-tier segment Jumeirah Village Circle (JVC) and Bur Dubai were the most popular choices among tenants, whereas those in search of villas were mostly inclined towards properties in JVC and Arabian Ranches 3. In the luxury category, Dubai Marina and Business Bay have maintained their popularity for apartment rentals, while Dubai Hills Estate and Al Barsha have been coveted for high-end villa rentals.

●       Analysing transactional rental prices, the majority of increases in affordable neighbourhoods for both villas and apartments have varied within the 5 – 11% range. An exception is observed in Dubai South for villas, where average transaction prices have decreased by up to 4%. Transactional prices for apartment and villa rentals in the mid-tier segment have reported increases of up to 17%. In the luxury apartment segment, transaction prices for rentals have risen by 11 – 15%. Meanwhile, luxury villa rentals have experienced a notable increase of 26.4% in Dubai Hills Estate.