Sales and Rental Market Report for Q1 2022: Property Prices Continue to Grow as EXPO 2020 Ends

The UAE’s leading property portals, Bayut & dubizzle have released their combined Dubai Property Market Report for Q1 2022, revealing that the emirate’s real estate sector has continued its upward trajectory in the first quarter of the year. Following an impressive close to 2021, the appreciation in rent and sale prices across Dubai’s prominent neighbourhoods’ points towards healthy demand for properties in both luxury and affordable segments, based on the search trends observed on the UAE’s two property advertising powerhouses. 
The combined data collected on Bayut & dubizzle reveals that sales prices for apartments and villas in highly searched for locations in Dubai have seen upticks between 1% to 14% in Q1 2022.
Prospective buyers have shown interest in properties in DAMAC Hills 2, Dubailand, Jumeirah Village Circle (JVC) and Business Bay for budget apartments and villas, while high-net-worth buyers have preferred properties in self-sustaining communities like Dubai Marina, Downtown Dubai, and Arabian Ranches. The gated Dubai Hills Estate community has also appealed to high profile investors in Q1 2022. 

Apartments for rent in Dubai’s affordable communities have experienced increases of up to 12% in asking prices, while prices for the luxury flat rentals have appreciated by up to 24%. For villas in the affordable segment, rental costs have seen a general increase of up to 10% in Q1 2022, while areas with luxury villas have recorded growths of up to 14% in asking rents.  

Tenants interested in affordable accommodation have been more inclined towards Jumeirah Village Circle (JVC) and Business Bay for apartments and Mirdif and DAMAC Hills 2 for villas. In the luxury segment, the popular Dubai Marina and Downtown Dubai communities have garnered the most searches from tenants looking for upscale apartments, whereas those looking at luxury villas have focused on Jumeirah and Al Barsha.

According to data released by Dubai Land Department, 13,608 residential property sales transactions worth AED 30.62B have been recorded in Dubai between January and March 2022. The DLD reports also termed the transactions in January to be the “best start to the year on record”. This could be mainly attributed to the growing demand from overseas investors and first-time buyers looking for permanent homes. 

Properties for Sale
In the luxury segment Dubai Marina has continued to be the most popular choice among investors and buyers looking for upscale apartments in Dubai. 
The average price-per-square-foot for sale of apartments in Dubai Marina has recorded an increase of 1.58%, standing at AED 1,404 in Q1 2022. 

Other popular areas such as Downtown Dubai and Dubai Hills Estate have also seen an appreciation in the average price-per-square-foot for apartments between 1% and 3%. Waterfront communities like Jumeirah Beach Residence and Palm Jumeirah, however, have recorded a decrease of under 3% in the average price-per-square-foot. 
For affordable flats, the trends at Bayut and dubizzle show that Jumeirah Village Circle has remained the top choice for prospective buyers. 
Sales price-per-square-foot for apartments in Jumeirah Village Circle have appreciated by 1.74% in Q1 2022 to average at AED 872. 

Business Bay, Jumeirah Lake Towers, Dubai Silicon Oasis and Dubai Sports City have also appealed to prospective buyers for affordable apartments. These popular residential districts have recorded increases in average sales price-per-square-foot by up to 4%, with the exception of Dubai Silicon Oasis where priced dipped by marginally under 1% in Q1 2022. 

Based on the trends observed at Bayut & dubizzle, the prices for luxury villas for sale in Dubai have appreciated across most popular districts in Q1 2022. 

Arabian Ranches has remained the most searched-for community for luxury villas in the first quarter of 2022. The price-per-square-foot of villas in Arabian Ranches has averaged at AED 1,192, following a slight increase of 0.38%. 

The Dubai Hills Estate development by Emaar has also appealed to buyers and investors. The average price-per-square-foot for villas in this neighbourhood has increased by 7.61% to average at AED 1,476.

The upscale residential district of Palm Jumeirah and the suburban community of The Villa have also experienced price upticks of 5% to 14%, whereas the average price-per-square-foot for villas in Arabian Ranches 2 has remained fairly stable. 
In Q1 2022, DAMAC Hills 2 (Akoya Oxygen) has remained a popular search for affordable villas among prospective buyers. 

The sale price-per-square-foot for villas in DAMAC Hills 2 has experienced a slight uptick of 0.88% in the first quarter of 2022, averaging at AED 602.

The price-per-square-foot for villas in suburban communities like Jumeirah Village Circle, Dubailand and DAMAC Hills have also recorded increases of 2% to 5%. 

The Springs has also garnered investor interest with the average price-per-square-foot in the area dipping by 0.72% during Q1 2022.

Rental Yields in Dubai

Based on projected rental yields, the affordable apartments in Dubai Sports City have generated healthy projected returns-on-investment of 7.94%. 
For luxury apartments, Dubai Marina has remained the most attractive option with projected rental yields of 7.11% in Q1 2022.
Buy-to-rent villas in DAMAC Hills have generated healthy rental returns of 6.92% for budget properties. 
Arabian Ranches 2 with its projected ROI of 6.46% has been the investor favourite for luxury homes. 

Off-plan Projects in Dubai
As per the combined data released by Bayut & dubizzle, District 10 in JVC has been the most popular off-plan apartment development in the budget category. Investors in search of reasonably priced off-plan villas in Dubai have focused their search on Rukan in Dubailand.

When it comes to luxury properties, Sobha Hartland in Mohammed Bin Rashid City has garnered the most investor interest for off-plan apartments, whereas buyers in search of off-plan upscale villas have been most inclined towards Elan in Tilal Al Ghaf. 

Properties for Rent 
Tenants looking at affordable apartment rentals have been keen on Jumeirah Village Circle (JVC) in Q1 2022. 

The asking rents for flats in JVC have seen moderate uptick of 7% to 8%. The average rent of apartments here stands at AED 33k for studios, AED 48k for 1-bed and AED 69k for 2-bed units.  

Al Nahda,  Bur Dubai, Deira and Business Bay have also been preferred options for tenants looking for affordable flats. Average cost to rent flats in these areas have increased by 1% to 12%. 
Based on Bayut & dubizzle’s combined analysis, Dubai Marina has continued to be the most preferred community for upscale apartment rentals in Q1 2022.

The rental costs in Dubai Marina have increased by 9% to 14% during Q1 for 1 and 2-bed units, now averaging at AED 88k and AED 132k respectively. The rents for 3-bedroom apartments decreased slightly by 0.99% to stand at AED 188k. 

Average asking rents for apartments in Downtown Dubai have gone up by almost 24%. The highest increase has been recorded for 2-bed units following the handover of properties in Opera Grand, as well as an increase in high-end 2BHK listings from projects like BLVD Heights and Downtown Views. Similarly, the average price for flats for rent in Palm Jumeirah have recorded upticks of up to 14% in Q1 2022.

Renters’ interest has also been focused on the newer apartment developments in Dubai Hills Estate and The Lagoons during Q1 2022. The trends observed on Bayut & dubizzle have shown the rental costs in both recoded  increases of 3% to 23% in the first quarter of 2022.

Based on the to Bayut & dubizzle’s combined market report, rental costs for affordable villa communities have seen a general increase for all bed types in the first quarter of 2022.

Mirdif has continued to be the top choice for budget villa rentals among potential tenants in Q1 2022. The average asking rents for villas in Mirdif have increased across all bed types by up to 10%, with 3-bed villas averaging at AED 89k, 4-beds at AED 112k and 5-bed villas at AED 129k. 

DAMAC Hills 2 has also emerged as a popular choice for tenants in search of affordable houses in Dubai. During Q1 2022, the area has experienced moderate fluctuations of under 3% in rental costs. While the rents for 3-bed and 4-bed villas decreased by 1.53% and 2.98% respectively, the rental cost of 5-bed villas increased by 2.20%

Prospective tenants have also shown an inclination for the affordable properties in other suburban areas like JVC, The Springs and Dubailand. The rental prices in Dubailand and The Springs have continued to rise, recording 2% to 8% increases in the first quarter of 2022. 

Jumeirah Village Circle has recorded a substantial decrease in rental costs for 5-bed villas, dropping from AED 194k in Q4 2021 to AED 151k in Q1 2022, owing to a decrease in inventory of villas in District 16 and Indigo Ville.

In the luxury segment, Jumeirah has remained the preferred choice for prospective tenants interested in villa rentals, during Q1 2022.

The asking rents for villas in Jumeirah have experienced upticks of up to 14%. The average rental costs during Q1 2022 have stood at AED 236k for 4 bed homes, AED 294k for 5-bed villas and AED 461k for 6-bed units.

Al Barsha has also remained a popular choice for high-income renters. Prices for rental villas in Al Barsha have recorded upticks of up to 7% for 4-bed and 5-bed units. The 6-bed units have experienced a 1.43% decline in rental cost, which averaged at AED 407k in Q1 2022. 

Potential tenants looking for upscale villa properties have also shown inclination towards established high-end areas like Arabian Ranches, Dubai Hills Estate and Umm Suqeim. Rental costs in these areas have generally increased between 1% and 13%, however there have been decreases recorded for certain bed types. 
Commenting on the findings, Haider Ali Khan, the CEO of Bayut & dubizzle and the Head of EMPG MENA said: 

“It has been a good start for the property market this year with demand continuing to rise for both luxury and affordable areas. Over the past three months alone, we have had over 18 million sessions on Bayut and dubizzle from property seekers, so there’s clearly an appetite for real estate in the city. The booming oil prices and strategic moves on the part of the government including the recent DEWA IPO have also increased confidence in the market both locally and internationally. This is clearly evident from the high ticket transactions over the last quarter, which includes the most expensive sale to date for the Palm Jumeirah villa which transacted at a record high of AED 280M. Property seekers are also leveraging PropTech solutions like our recent collaboration with DLD to understand transaction history and make strategic real estate choices. ” 
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