- JVC and Dubai Marina go head to head for consumer interest in the popular areas to buy and rent apartments in Dubai
- Newer villa communities like Dubai Hills Estate, DAMAC Hills and Akoya Oxygen replace older favourites such as Emirates Hills and The Meadows for villa sales in Dubai
Dubai, UAE - Dubai’s real estate market has seen some promising signs of stability with most commercial activities resuming across the emirate. As per Bayut and dubizzle’s combined market report for Q3 2020, prices have remained competitive, with most established neighbourhoods reporting minor declines of under 5% in both rental and sales markets. The number of transactions have also gone up in most of the popular residential neighbourhoods, highlighting the appeal of Dubai as an attractive destination for property investment. Other recent announcements including the first-of-its-kind retirement visa scheme, spearheaded by the Department of Tourism and Commerce Marketing, and the updated dates for the EXPO have also kept the emirate’s real estate sector in the limelight.
In the third quarter of 2020, prospective buyers have turned their attention towards established neighbourhoods such as Arabian Ranches, Jumeirah Village Circle (JVC), Dubai Marina and Dubailand which are strategically located close to commercial hubs, schools and recreational facilities. Similarly, potential tenants have also been favouring family-oriented communities, such as Mirdif, Jumeirah Village Circle, Jumeirah and Dubai Marina.
Properties for Sale in Dubai
Arabian Ranches has dominated the interest from buyers and investors interested in purchasing ready villas in Dubai in Q3 2020, as per the combined data released by Bayut and dubizzle.
The average sales price-per-square-foot for villas in Arabian Ranches has experienced a minor decrease of 1.9% in Q3 2020, going from AED 886 to AED 869.
The price-per-square-foot for ready villas for sale in the next most popular area, Dubailand has also become more affordable going from AED 641 to AED 627 in the third quarter of 2020. Meanwhile, the luxury community of Palm Jumeirah has remained competitive with price-per-square-foot for villas averaging at AED 2,032.
On the other hand, newer developments such as Dubai Hills Estate and DAMAC Hills have seen the average price-per-square-foot remain stable. Other up-and-coming districts such as Akoya Oxygen and The Villa have also remained popular with buyers, experiencing minor declines of under 5% over the last quarter.
Prospective buyers have also shown interest in suburban communities such as The Springs, Jumeirah Village Circle and Jumeirah Park for ready villas.
When it comes to apartment sales, Jumeirah Village Circle (JVC) and Dubai Marina have had a tough fight to claim the first spot for the most sought-after area for buying apartments in Q3 2020.
The average price-per-square-foot for ready apartments in JVC has declined by 2.4%, reducing from AED 852 to AED 832. The upscale neighbourhoods of Dubai Marina and Downtown Dubai have also experienced minor declines between 2% to 6%, averaging at AED 1,136 per sq.ft in Dubai Marina and AED 1,719 per sq.ft in Downtown Dubai.
Other areas that have remained popular for ready apartments in Q3 2020 include Jumeirah Lake Towers (JLT), Dubai Silicon Oasis, Business Bay, Palm Jumeirah, Dubai Sports City and Jumeirah Beach Residence, which have seen minor declines in prices under 5.5%.
International City has continued to be the best option for investors keen on purchasing apartments with high return-on-investment, with an average ROI of 8.1% based on projected rental yields. Dubailand has also been yielding healthy average returns of 5.9% for investors interested in ready villas.
As per the combined data from Bayut and dubizzle, affordable developments such as Dubailand and Akoya Oxygen have become sought-after options for those interested in Dubai’s off-plan market. Rukan has been the preferred choice for prospective homeowners in Dubailand, offering family-friendly apartments, villas and townhouses. Meanwhile, Aknan Villas has dominated the interest of buyers in Akoya Oxygen, with its impressive selection of luxury villas.
Properties for Rent in Dubai
The family-oriented community of Mirdif has continued to be the most popular choice for renting villas in Dubai, as per Bayut and dubizzle’s combined data. The average rents for 3 and 5-bedroom villas in Mirdif have stayed steady in the third quarter of 2020, averaging at AED 88k and AED 115k respectively while rental costs for 4-bedroom villas in Mirdif have declined from AED 110k to AED 100k, adding to the affordability of the community.
Established neighbourhoods such as Jumeirah and Umm Suqeim as well as newer developments like Reem have also seen prices remain largely steady in the third quarter of 2020. Other notable areas for villa rentals in Dubai including Akoya Oxygen, Al Barsha, The Springs, Arabian Ranches and Jumeirah Village Circle have seen minor declines in costs under 5%.
Similar to investors, prospective renters have also turned to Jumeirah Village Circle (JVC) as their first choice for apartment rentals, followed closely by long standing favourite Dubai Marina.
In Q3 2020, the rental costs for apartments in JVC saw minor declines between 4% to 7% across the board, averaging at AED 28k for studios, AED 43k for 1-bedroom apartments and AED 65k for 2-bedroom flats.
The average rents in Dubai Marina have remained competitive, experiencing minor decreases between 5% to 8% in Q3 2020.
Older districts such as Bur Dubai and Al Nahda, which are sought after for their affordable prices and excellent connectivity, have seen average rental costs hold steady over the last quarter. On the other hand, suburbs such as Dubai Silicon Oasis (DSO), International City and Dubai Sports City as well as commercial hubs including Business Bay and Jumeirah Lake Towers (JLT) have seen minor declines between 4% to 10%.
Commenting on the trends, Haider Ali Khan, CEO of Bayut and dubizzle, said:
“Over the last three months, we’ve seen several encouraging signs of recovery in Dubai’s real estate sector with things opening up and economic activity gradually returning to successful levels. Transactions and interest in the property market have been on the rise, many processes have been digitised by the DLD and new regulations such as the Retire in Dubai scheme have come into place, further enhancing the appeal of Dubai’s property market. This has also re-affirmed the UAE’s appeal not just as an ideal global investment and entrepreneurial hub, but also as a place for families to build their forever home. We’ve also seen this sentiment echoed on Bayut and dubizzle, with the combined traffic on both portals reaching well over 22 million during the period from July to September.”
© Press Release 2020