Dubai, UAE: Bayut & dubizzle’s combined Dubai property market reports for Q1 2021 has revealed that sales and rental prices in most popular neighbourhoods have shown promising growth and rising demand for luxury real estate in particular.

Some of the key factors that have increased appetite for Dubai real estate in Q1 2020 include lower interest rates, loan-to-value ratios, and attractive property prices seen over the last year. These favourable market conditions, combined with the growing need for bigger living spaces and access to recreational amenities by end-users, have been driving demand, particularly for ready-to-move-in homes.

Government initiatives have also played an integral role in further enhancing Dubai’s appeal to a wider audience. The landmark announcements regarding UAE Citizenship Law and remote work visas have also led to strong investor sentiment while proactive measures to combat the ongoing pandemic and the organised vaccination campaign have further built on the city’s reputation as one of the safest places to live in the world. According to data published by the Dubai Land Department (DLD), 62% of total investors in January and February 2021 were new home buyers, highlighting the city’s growing appeal with first-time buyers.

  • The combined sales and rental data released by Bayut & dubizzle has revealed that properties for sale in Dubai experienced price increases between 2% to 10% in Q1 2021.
  • Rental costs have also increased by up to 10% in Dubai’s luxury segment, while the affordable housing market has recorded decreases of up to 13%.
  • In Q1 2021, prospective buyers and investors have favoured Jumeirah Village Circle, Jumeirah Lake Towers, Dubailand and Akoya Oxygen for competitively-priced apartments and villas, while established communities such as Dubai Marina, Downtown Dubai, Arabian Ranches and Palm Jumeirah take the lead for luxury properties for sale.
  • Similarly, suburbs and older neighbourhoods such as Jumeirah Village Circle, Mirdif, Al Nahda and Akoya Oxygen have been the preferred choices for budget-conscious tenants, while Dubai Marina, Downtown Dubai, Arabian Ranches and Dubai Hills Estate have remained popular for upscale apartments and villas for rent.
  • Dubai also recorded 6,328 transactions for residential properties worth AED 8.9B in the first quarter of 2021, as per reports from DLD. Transactions for ready properties took the lead in Q1 2021, accounting for nearly 64% of total residential transactions in the emirate. This could be attributed to end-users taking advantage of prevailing market conditions to upgrade their homes.

Properties for Sale

Apartments:

According to data released by Bayut & dubizzle, Dubai’s luxury apartment segment has recorded an impressive uptick in sales prices, pointing to growing demand for upscale homes.

  • Dubai Marina has continued to generate the most interest for luxury apartment sales in the first quarter of 2021. The price-per-square-foot for ready apartments in Dubai Marina has experienced an increase of 5.62%, rising from AED 1,152 to AED 1,217.
  • Downtown Dubai, Business Bay and Palm Jumeirah have also seen sales prices for apartments rise between 5% to 8% in Q1 2021, with average-price-per-square-foot ranging between AED 1,250 to AED 1,890.

When it comes to affordable apartments for sale, prospective buyers and investors have continued to favour Jumeirah Village Circle (JVC) as their first choice in Q1 2021.

  • The sales price-per-square-foot for ready apartments in JVC has dipped by 2.21% in the first quarter of 2021, averaging at AED 806.
  • Other reasonably-priced developments such as Jumeirah Lake Towers, Dubai Silicon Oasis and Dubai Sports City have seen an uptick in sales prices for apartments between 2% to 4%.
  • International City has seen price-per-square-foot remain largely steady at AED 439 in Q1 2021.

Villas:

Similar to apartment sales, luxury villa communities in Dubai have also experienced an increase in sales prices in Q1 2021, which could be driven by rising demand for bigger ready-to-move-in homes in the wake of the pandemic.

  • In Q1 2021, Arabian Ranches dominated the attention of prospective buyers and investors searching for luxury villa properties for sale. The average sales price-per-square-foot for houses in Arabian Ranches has recorded an increase of 9.74%, rising from AED 931 to AED 1,022.
  • HNW buyers and investors have also continued to show interest in family-oriented developments such as Dubai Hills Estate, The Villa, Palm Jumeirah and Jumeirah Golf Estate, which often come with upscale amenities including golf courses and private beach access.
  • These sought-after communities have also seen sales-price-per-square-foot for villas increase between 7% to 10% in the first quarter of the year.

According to Bayut & dubizzle’s combined report, investors have remained keen on suburban developments for budget-friendly villa properties in Q1 2021.

  • In Q1 2021, the up-and-coming development of Dubailand has been a firm favourite for affordable villa sales with its sales-price-per-square-foot rising by 1.82% to AED 667.
  • Mudon has also seen its price-per-square-foot for ready villas increase by 5.5%, from AED 776 to AED 818, reflecting the growing demand for integrated, family-friendly communities.
  • Other suburbs such as JVC and Akoya Oxygen as well as established communities like The Springs have remained popular with potential buyers and investors.

Rental Yields in Dubai

  • International City has continued to offer strong return-on-investment for affordable apartments, with an average ROI of 7.61% based on projected rental yields. On the other hand, Dubai Marina has been yielding average returns of 5.5% for investors keen on purchasing luxury apartments.
  • When it comes to villa properties, Jumeirah Village Circle (JVC) and Arabian Ranches have continued to offer healthy ROI of 5.89% and 5.2% respectively.

Off-Plan Projects in Dubai

  • Binghatti Avenue in Al Jaddaf has generated the most interest for reasonably-priced off-plan apartments in Q1 2021, while EMAAR Beachfront in Dubai Harbour has emerged as the first choice for luxury off-plan apartments with prospective buyers.
  • For off-plan villas in Dubai, Rukan in Dubailand has continued to be the preferred choice in the affordable segment while District One in Mohammed Bin Rashid City has ranked as the most popular off-plan project in the luxury property market.

Properties for Rent

Apartments:

Similar to apartment sales, Jumeirah Village Circle has maintained its popularity with tenants searching for budget-friendly apartments in Q1 2021.

  • The rental costs for apartments in JVC have remained steady overall in Q1 2021, averaging at AED 27k for studios, AED 42k for 1-bed apartments and AED 63k for 2-bed flats.
  • Other popular neighbourhoods for affordable apartments such as Al Nahda, Dubai Silicon Oasis and Dubai Sports City have seen minor declines between 2% to 7% in rental costs overall.

Dubai Marina has also remained the preferred choice for luxury apartment rentals in the first quarter of 2021, as per Bayut & dubizzle’s combined analysis.

  • The 1 and 2-bed apartments in Dubai Marina have seen an uptick in rental costs, averaging at AED 61k and AED 92k, while 3-bedroom apartments have remained steady at AED 129k.
  • The average rents for apartments in Jumeirah Beach Residence (JBR) have also increased between 7% to 8%, indicating growing demand for bigger and more luxurious homes.
  • Downtown Dubai, Palm Jumeirah and Sheikh Zayed Road have also seen rental costs for apartments remain steady or increase up to 5% in Q1 2021.

Villas:

According to trends observed on Bayut & dubizzle, Mirdif has remained the firm favourite with tenants looking for competitively-priced villas.

  • The average rental costs in Mirdif have moderately declined to AED 84k and AED 111k for 3 and 5-bed villas respectively, while 4-bed villas have remained steady at AED 108k.
  • Tenants have shown a clear preference for suburbs including Akoya Oxygen, Jumeirah Village Circle, Mudon and Dubai South, which have largely experienced minor price fluctuations under 5% in Q1 2021.

Luxury villa communities in Dubai have experienced an uptrend in rental costs overall, in line with the prevailing market trends.

  • The most popular choice to rent upscale villas in Q1, Jumeirah has recorded increases up to 14% in rental costs across the board. Tenants can expect to pay AED 167k for 3-bed homes, AED 225k for 4-bed villas and AED 334k for 5-bed units. 
  • Al Barsha has also experienced moderate increases in rental costs up to 11% for villas while Umm Suqeim has seen marginal decreases under 3%. 
  • Gated communities such as Arabian Ranches and Dubai Hills Estate have also remained popular choices for tenants keen on luxury villa properties.

Haider Ali Khan, CEO of Bayut & dubizzle and Head of EMPG MENA, commented on the performance of the Dubai real estate market: “This year has really started off on a good note for the Dubai real estate market. In the first quarter of 2021, we have seen an impressive growth in demand; prices have increased in most of the key areas and the volume of transactions have also gone up. In fact, some of the sales prices for popular areas in Dubai are the highest we have seen in the market since 2014, which is a good measure of the confidence that property seekers currently have in Dubai’s real estate market,”

“We have also noticed that there is a lot of positive sentiment in the market, thanks to the recent announcements from the government, both locally and internationally. We have seen the impact of this on the traffic to both our portals as well. The combined traffic for Bayut & dubizzle property in the last three months alone, exceeded 21 million sessions. All of this points to the fact that there is a growing appetite for residential space in the city; a trend that we could see transitioning into the rest of the year as well.”

Send us your press releases to pressrelease.zawya@refinitiv.com

© Press Release 2021

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.