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The Real Estate Market in Dubai Continues to Soar and Show Growing Rental and Sale Prices

The Real Estate Market in Dubai Continues to Soar and Show Growing Rental and Sale Prices
The Dubai real estate market continues to show a general increase in terms of annual rental prices and sale costs.
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PUBLISHED: 2 August 2023
According to Fibha Ahmed, the Director of Sales of Bayut and dubizzle, the real estate market of the emirate “rolled into 2023 in emphatic style, with many of the record-shattering numbers of 2022 already being broken again in 2023”. She added that among the key reasons that create the buoyant market in Dubai are long-term visa schemes, financial offers from developers and a vibrant range of properties.

In H1 2023, the average costs across affordable and premium apartments ranged from AED 466K (USD 127K) to AED 5.45M (USD 1.5M). As for villas, the prices on affordable and luxury units were recorded from AED 1.4M (USD 381K) to AED 42.1M (USD 11.5M).

Jumeirah Village Circle (JVC) is the most searched area in terms of affordable apartments. The average sales price here, as of H1 2023, was AED 893K (USD 243K) with an ROI of 7.69 %. As for luxury residences, Dubai Marina kept its status as the most desirable location with a rental yield of 7.19 % and an average sale cost of AED 2.25M (USD 612K).

DAMAC Hills 2 was the most popular area among buyers of affordable villas. It features an ROI of 6.47 % and an average price of AED 1.4M (USD 381K). Among other popular areas offering affordable villas were Dubailand, Jumeirah Village Circle, Al Furjan and Dubai South. People looking for luxury villas showed interest in Dubai Hills Estate with an average sales price of AED 14.3M (USD 3.9M) and a rental yield of 5.1 %. Palm Jumeirah, Jumeirah Park, DAMAC Hills and Arabian Ranches are also at the top of ideal areas for luxury villas.

As for rental prices, Dubai Marina was the most favoured destination on a yearly basis. Rental costs in the area grew by 12.5 % in H1 2023, with an average cost of AED 144K (USD 39K). Tenants looking for yearly luxury properties were also interested in Business Bay, Downtown Dubai, Jumeirah Beach Residence (JBR) and Dubai Hills Estate.

Dubai Marina is also at the top of most sought-after areas for monthly rentals and saw a price drop of 11 %. Among other areas are Jumeirah Village Circle (JVC), Deira, International City, Bur Dubai and Al Nahda.