Srishti Bodana – Thu, 19 Jan 2023 07:29:00 GMT – 0

Bayut - Dubai Property - Sales and Rental Market Report for 2022 - High demand in sought after Dubai market driving prices up by over 50% in key areas...

The UAE’s leading property portal, Bayut has published its annual Dubai Property Market Report for 2022, revealing the most searched for areas in the emirate’s much talked about real estate sector. According to consumer interest on the powerhouse portal, prices in Dubai’s property sector have increased across popular districts in the emirate making it extremely favourable for landlords and sellers. This continued boom in sale and rent prices has been fuelled by a strong demand for luxury and affordable properties in Dubai.

Based on the data from Bayut, sales prices for apartments and villas in the most prominent neighbourhoods of Dubai have increased by 2% to 24% in 2022.

Potential investors looking for affordable villas and apartments have preferred areas like Jumeirah Village Circle (JVC), Jumeirah Lake Towers, DAMAC Hills 2 and Dubailand while prospective buyers for luxury properties have searched for properties in Dubai Marina, Downtown Dubai, Arabian Ranches and Dubai Hills Estate in 2022.

Prices for reasonably-priced rental apartments in Dubai’s prominent areas have experienced increases of up to 24%, while luxury apartment rentals have appreciated dramatically by 24% to 54%. Areas with affordable villas have recorded upticks of 2% to 23%, whereas asking rents in areas with upscale villa properties have increased by up to 54%.

Tenants in search of affordable housing options have shown an inclination towards Jumeirah Village Circle (JVC) and Bur Dubai for apartments, whereas those interested in villas have mainly searched for units in DAMAC Hills 2 and Mirdif. In the luxury segment, Dubai Marina and Business Bay have appealed most to tenants looking for apartments, while Al Barsha and Jumeirah have been the popular choices for villas.

Based on the data released by Dubai Land Department, the emirate recorded 97,466 residential property sales transactions worth AED 265.6B during 2022, up by over 50% compared to the volume and value in 2021. This could be attributed to the economic stability and business-friendly initiatives in Dubai that have attracted massive influx of foreign investment in the emirate’s real estate sector.

Properties for Sale

Apartments:
Dubai Marina has remained the top choice for investors interested in luxury apartments for sales in Dubai.

The average sales price-per-square-foot for flats in Dubai Marina has recorded an increase of 11.62%, averaging at AED 1,502 during 2022.

Buyers looking for expensive flats have also been inclined towards properties in Downtown Dubai, Business Bay, Palm Jumeirah and Jumeirah Beach Residence. The average sale price-per-square-foot in these communities has appreciated by up to 15%. Most of these price hikes have been consequent to the increased demand for properties in these areas.

According to the search trends observed at Bayut, Jumeirah Village Circle has continued to be the most attractive option for affordable apartments in Dubai.

Apartments in Jumeirah Village Circle have recorded an uptick of 7.25% in average sales price-per-square-foot, to stand at AED 896 in 2022.

Other areas that have attracted the interest for affordable apartments include, Jumeirah Lake Towers, Dubai Silicon Oasis, Dubai Sports City and International City. There has been a 2% to 11% increase in the average sales price-per-square-foot in these areas, with prices in Jumeirah Lake Towers increasing the most.

Villas:

Based on consumer search trends on Bayut, the average sales price for expensive villas in Dubai have predictably appreciated in the popular districts during 2022.

Arabian Ranches has been the top choice for buy-to-let luxury villas in Dubai, during 2022. The sale price-per-square-foot for villas in Arabian Ranches averaged at AED 1,241, following an increase of 8.36%.

The buy-to-let villas in Dubai Hills Estate have also been highly searched-for by high net worth buyers. The average price-per-square-foot for houses in this district has increased by 17.3% in 2022, to stand at AED 1,541. The increase can be mainly attributed to the handovers in Golf Place and Golf Grove sub-communities.

Investors and buyers also showed interest in the expensive villas available in Palm Jumeirah, DAMAC Hills and Arabian Ranches 2. Prices in these areas have also recorded increases of up to 24%. The highest increase has been observed in Palm Jumeirah, following the influx of property listings from Fairmont Palm Residences, Signature Villas Palm Jumeirah, Palma Residences and Kingdom Of Sheba.

Buyers and investors interested in affordable villas in Dubai have mainly focused on DAMAC Hills 2 in 2022.

The average sales price-per-square-foot for villas in DAMAC Hills 2 has appreciated by 2.98% to stand at AED 626.

Jumeirah Village Circle has also remained popular among investors looking for affordable buy-to-let villas in Dubai. The price-per-square-foot for villas for JVC villas has recorded an uptick of 10.2%, to average at AED 660 in 2022.

Buyers have also searched for the reasonably-priced villas in Dubailand, The Springs and Al Furjan. Prices in these areas have increased by 7% to 9% during 2022.

Rental Yields in Dubai

Offering projected rental returns of 9.22%, International City has been one of the best options for investing in affordable buy-to-let apartments, during 2022.

Dubai Marina with a projected ROI of 7.04% has offered the highest rental returns for luxury apartments.

For budget-friendly villas in Dubai, Jumeirah Village Circle has generated the most attractive return-on-investment of 6.90% in 2022.

The luxury buy-to-let villas in DAMAC Hills have offered the healthiest projected rental yields of 6.95%.

Off-plan Projects in Dubai

As per the data released by Bayut, District 10 in JVC has emerged as the most popular off-plan development for affordable apartments in Dubai, whereas Villanova in Dubailand has been most preferred by those in search of reasonably-priced off-plan villas.

In the luxury segment, Binghatti Canal Building in Business Bay has appealed the most to investors for off-plan flats. Those looking for expensive off-plan villas have focused on Alaya in Tilal Al Ghaf.

Properties for Rent

Apartments:

For affordable apartment rentals in Dubai, prospective tenants have continued to search for flats in Jumeirah Village Circle in 2022.

The rental costs of flats in JVC have significantly increased by 14% to 24% during 2022. On average tenants have paid AED 36k for studios, AED 51k for 1-bedroom and AED 73k for 2-bedroom flats.

Renters have also shown an inclination for the flats in Bur Dubai, Deira, Al Nahda and Dubai Silicon Oasis. Rental costs of apartments in these areas have recorded increases of up to 19%. The highest hike in asking rents have been observed in Dubai Silicon Oasis, which may have resulted from landlords capitalising on increasing demand in the up and coming area.

According to the search trends on Bayut, tenants looking for luxury apartments in Dubai have continued to be attracted to the properties in Dubai Marina during 2022.

The asking rents for flats in Dubai Marina have increased by up to 39%. In 2022, the rental costs for apartments in Dubai Marina averaged at AED 91k for 1-bed, AED 140k for 2-bed and AED 207k for 3-bed units.

Other popular areas that potential tenants have searched for luxury apartment rentals include Business Bay, Downtown Dubai, Dubai Hills Estate and Palm Jumeirah. These areas have reported rises of 24% to 54% during 2022. The most significant increases were noticed in Palm Jumeirah and Dubai Hills Estate, where limited inventory, particularly for larger units, has led to drastic price increases of over 50% for certain properties.

Villas:

In the affordable segment, DAMAC Hills 2 has remained the top choice for prospective tenants in search of villas, during 2022.

The asking rents for villas in DAMAC Hills 2 have appreciated by up to 9% for 3 and 5-bed units, averaging at AED 63k and AED 98k, respectively. The 4-bed villas for rent in DAMAC Hills 2 became more affordable by 5.37%, with annual rents averaging at AED 74k in 2022.

Mirdif has also emerged as a popular option for tenants in search of affordable houses in Dubai. During 2022, the district recorded price appreciations of 12% to 14% across the board. On average, the 3-bed houses in Mirdif have been let out for AED 98k, whereas the 4-bed and 5-bed units have been priced at AED 120k and AED 132k, respectively.

Potential tenants looking for affordable villa properties have also been inclined towards areas like Dubailand, Jumeirah Village Circle and Reem. The average rents for houses in these locales have experienced general upticks ranging from 2% to 23%. Very few unit types have recorded decreases over the last year.

According to Bayut’s real estate market report, luxury villa rentals in popular communities across Dubai have seen significant upticks in annual costs during 2022.

Al Barsha has continued to be the top choice for luxury villa rentals in Dubai. The rental costs for houses in Al Barsha have recorded increases of 16% to 27% across all bed types. In 2022, the average rent stood at AED 220k for 4-bed, AED 303k for 5-bed and AED 414k for 6-bed units.

Jumeirah has also remained a popular option for high-income tenants. The rental costs for villas have increased by up to 54%. The highest increase has been observed in the prices for 4-bed villas, with rental costs averaging at AED 273k. The inventory for this bed type has also reduced compared to the previous year, thanks to rising demand. During 2022, the asking rents for 5-bed in Jumeirah averaged at AED 331k, whereas the 6-bed houses were priced at AED 460k.

Tenants have also shown an inclination towards the expensive houses in Dubai Hills Estate, Umm Suqeim and Arabian Ranches 2. These districts have reported price increases of up to 29%, with landlords pricing their properties higher to benefit from increasing demand.

Commenting on the findings, Haider Ali Khan, the CEO of Bayut & dubizzle and the Head of EMPG MENA said:

“It has been well documented over the last year that the real estate market has outperformed expectations, with record-breaking transactions, attractive new launches, and favourable investment opportunities. In 2022, the market also moved towards greater digitisation and transparency. We at Bayut have always been at the forefront of providing more authentic content to our users and we are working closely with the DLD to make sure we continue to improve the quality of content listed on the platforms as well as provide transactional data on Bayut to make our users more aware of what’s happening in the market. These initiatives should also help strengthen the appeal of Dubai’s market among investors from global markets.”

“The demand for real estate in the city has continued to rise, as evidenced by the transaction data released by DLD, showing both value and volume have increased by over 50% year-on-year. Traffic and inquiries on Bayut have also increased significantly over the past year, reflecting the trend of higher-than-usual demand in the market. In my opinion, Dubai has done a fantastic job of managing the growth initiatives in the past few years and we are all reaping the benefits of the hard work put in by the authorities. I see Dubai continuing to consolidate its position as a destination of choice and making expectations from 2023 very exciting.”

Dubai Real Estate Sales and Rental Market Report for 2022 by bayut

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