The boom in Dubai's real estate market is still in progress. According to the Dubai Land Department, during the first quarter of 2023, more than 30,767 residential property transactions were completed in the emirate, for a total of AED 87.9B (USD 24B).

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The boom in the real estate market.

Published: 16 May 2023

The apparent demand allows landlords to set higher prices for their properties. And although this news will disappoint many residents, the market situation is beneficial for investors and sellers. Rising prices for buying and renting of real estate means good profitability and a quick return on investment.

The most notable increase in prices was shown in the luxury real estate segment. According to statistics published in the Dubai Property Market Report on the Bayut website, during the first months of this year the level of prices went up by 24% and the rental price of luxury villas increased by 89%. In its report, Bayut also reveals the areas of Dubai that attract the most interest from visitors to the portal, and the areas with the highest rates of return.

The leading position in terms of requests in the search engine still belongs to Dubai Marina. There is a huge demand for luxury apartments in this area, the cost of which has increased by 12.5%, amounting on average to AED 1.5K (USD 416) per sq.ft. For expensive villas, investors often consider Palm Jumeirah, where the cost per sq.ft of villas has reached AED 3.7K (USD 1K), having risen by 23.3% since the beginning of 2023.

At the same time, the greatest interest in renting luxury stand-alone properties was observed in the Umm Suqeim district. During the first quarter of the year, the rental price of villas in this neighbourhood increased by 50%. However, the highest increase in prices for premium villas of 89%, was recorded in Dubai Hills Estate, Palm Jumeirah and Arabian Ranches 2.

For investors willing to earn the highest rental income, an important criteria will be the ROI that is generated by the property. The International City district, which offers affordable real estate for sale, has recorded the most impressive annual yield of 9.16%.

According to Haider Ali Khan, CEO of Bayut and dubizzle, Dubai has strengthened its position as a mainstream destination, attracting more people with diverse backgrounds from all over the world. The growing number of visitors of the portal demonstrates the ongoing demand for purchasing and renting properties in various districts, and the credibility of the Dubai real estate market.