Flourishing Dubai Property Market Sustains Powerful Momentum, dubizzle’s Q3 2023 Property Market Report Shows
Dubai, UAE – 29 October 2023 – dubizzle, the UAE’s leading classified platform, a part of the Dubizzle Group and one of the most trusted places to buy and sell properties in Dubai, has revealed a comprehensive analysis of Dubai’s real estate market performance in Q3 of 2023. Presenting an in-depth analysis of the emirate’s property sales and rental market, the Dubizzle Group’s pioneering marketplace in the UAE said that trends indicate a flourishing market with numerous opportunities for investors.
Strong market momentum from the first half of the year carried into Q3, according to dubizzle data, with sustained positive trends for both the sales and rental property segments. The UAE’s investment-friendly policies and the announcement of new projects including the highly anticipated Palm Jebel Ali have continued to support the sector’s growth. Several areas have also witnessed a spike in popularity due to the completion of off-plan projects.
Commenting on the wider trends in the market, the CEO of Bayut & dubizzle and Head of Dubizzle Group MENA, Haider Ali Khan, said:
“Dubai’s real estate market has shown positive growth for the third consecutive quarter of 2023. While a wide range of factors contribute to the continuous growth of Dubai’s real estate sector, the last three months have been exceptional, with record high transactions and the launch of new developments such as Palm Jebel Ali. In line with market activity picking up pace, we are also seeing more traffic and more content on our platform. Search volumes have increased in almost all types of properties in most popular areas, with the number of leads growing steadily month on month.
As the pioneering and leading online marketplace in the region, dubizzle remains firmly committed to facilitating informed decision making by our users in this ever-evolving market, and as such we will continue to provide high quality data and analysis for the latest real estate trends and developments.”
Here are some highlights from dubizzle’s Dubai property market reports for Q3 2023:
-
Buyers’ Preferred Villa Community: Dubai Hills Estate, with an average sales price of AED 16.53M, has remained highly searched for luxury villas.
-
Options of Luxury Apartments: With an average sales price of AED 2.42M and annual rent of AED 148k, Dubai Marina has been a popular choice for both buying and renting luxury apartments. Business Bay, Downtown Dubai, Meydan City and Dubai Creek Harbour have also made it to the list of highly searched areas for renting luxury apartments.
-
Highest Investment Returns: For luxury apartments, Al Barari has the highest return on investment (ROI) of 7.80% based on rental yield, along with an impressive ROI of 8.93% for luxury villas in Q3.
-
For affordable villas, DAMAC Hills 2 (Akoya by DAMAC), with an average sales price of AED 1.56M, has been the most sought-after area.
-
Popular Areas for Affordable Apartments: With an average annual rent of AED 44k, Al Nahda has garnered significant attention from tenants seeking budget-friendly apartments.
-
Rental Increase for Apartments: For affordable apartments, a significant rental increase of 9.80% has been recorded for 2-bedroom apartments in International City. In the luxury segment, Meydan City saw the biggest change in average annual rent, with an increase of 10.45% from Q2 2023.
-
Highest Investment Returns: Liwan and Remraam have an ROI of 9.66% in the affordable apartment segment. As for villas, Wasl Gate has generated returns of 7.40% in the affordable segment.
Properties for Sale in Dubai
According to the user trends on dubizzle, the following areas have been most popular for buying apartments and villas in Q3 2023.
Apartments for Sale in Dubai
Dubai Marina, Business Bay and Downtown Dubai have been the top three communities for buying luxury apartments in Dubai. Mesmerising views of iconic landmarks and easy access to the city centre have contributed to their popularity.
-
Dubai Marina, with an average sales price of AED 2.42M and ROI of 6.70%, has taken the lead. Business Bay has followed it to the second spot, with an average sales price of AED 2.03M.
-
In terms of per-square-foot price, Dubai Marina and Business Bay have witnessed an appreciation of 7.13% and 5.18%, bumping it to AED 1,859 and AED 2,145, respectively.
-
The highest change of 7.93% in the per-square-foot price has been observed in Palm Jumeirah.
-
Downtown Dubai and Dubai Creek Harbour, with an average sales price of AED 3.50M and AED 2.38M, has been a popular area for luxury apartments.
Buyers looking for affordable apartments have preferred JVC, Dubai Silicon Oasis, International City, JLT and Dubai Sports City.
-
With an estimated ROI of 7.57%, apartments in JVC have an average sales price of AED 966k. The prices of studio, 1 and 2-bedroom apartments in the area have increased by 7.06%, 4.05% and 8.41%, respectively.
-
A dip of 2.35% has been observed in the per-square-foot price of apartments in Dubai Silicon Oasis.
-
The prices in International City have also increased, reaching AED 319K for a studio and AED 450k for a 1-bedroom apartment.
-
Property owners in JLT and Dubai Sports City have also leveraged the positive price trend.
Villas for Sale in Dubai
Dubai Hills Estate, DAMAC Hills, Palm Jumeirah, Arabian Ranches and Arabian Ranches 3 have piqued the interest of buyers looking for upscale villas in Q3 2023.
-
Dubai Hills Estate offers an ROI of 4.46% with an average sales price of AED 16.53M. The per-square-foot price of the area has also increased by 6.53%, making it AED 2,289 in Q3.
-
Whereas DAMAC Hills has observed an increase of 6.02% in the prices of 4-bed villas and 10.72% in the prices of 5-bed villas.
-
Similarly, the per-square-foot price of villas in Palm Jumeirah increased by 12.63% making it AED 5,246 for the Q3 2023.
-
For Arabian Ranches and Arabian Ranches 3, the trend has remained positive as the areas witnessed a respective increase of 3.29% and 4.55% in the per-square-foot prices.
In the affordable villa category, DAMAC Hills 2 (Akoya by DAMAC), Dubailand, JVC, Al Furjan and Dubai South have been the most-searched-for areas.
-
DAMAC Hills 2 offered an estimated ROI of 6.99% with an average sales price of AED 1.56M. The per-square-foot price in the area has increased by 10.41%, making it AED 763 in Q3 2023.
-
The per-square-foot prices have also increased in Dubailand, JVC and Al Furjan. The price has averaged AED 1,085 after an increase of 7.78% in Dubailand; AED 851 after an increase of 10.23% in JVC; and AED 1,019 after a 3.83% rise in Al Furjan.
-
The highest change of 14.62%, however, has been recorded in the per-square-foot price in Dubai South, increasing it to AED 939 in Q3 from AED 819 in Q2 2023.
Properties for Rent in Dubai
As per dubizzle’s Q3 2023 report, the average annual rents in the emirate have increased in most areas. Here are the areas that have been searched the most by tenants seeking both apartments and villas.
Apartments for Rent in Dubai
To rent luxury apartments, tenants have opted for Dubai Marina, Business Bay, Downtown Dubai, Meydan City and Dubai Creek Harbour.
-
After an increase of 2.07% from Q2 2023, the rent of luxury apartments in Dubai Marina averaged AED 148k.
-
AED 115k has been recorded as the average annual rent of apartments in Business Bay. Unlike other areas, the average rent in Business Bay has increased slightly, the increase has been 2.90% for studios, 2.22% for 1-bed and 4.35% for 2-bed apartments.
-
Similarly, the average annual rent in Downtown Dubai has also observed a slight increase of 2.33%, making it AED 220k for Q3 2023.
-
On the contrary, the rent in Meydan City has increased by 10.45%, averaging AED 74k.
In the affordable apartment category, Al Nahda (Dubai), JVC, Bur Dubai, Deira, and International City have remained popular. Overall, average rental prices in the affordable category have increased.
-
With an average annual rent of AED 44k, Al Nahda tops the list, followed by JVC with an annual rent of AED 65k.
-
In Bur Dubai, the prices have increased by 2.70% for studios, 3.39% for 1-bed and 3.95% for 2-bed apartments.
-
Similarly, the annual rent in Deira and International City has increased by 5.45% and 6.06%, making it AED 58k and AED 35k for Q3, respectively.
Villas for Rent in Dubai
Tenants in search of luxury villas have focused on Arabian Ranches 3, Al Barsha, Dubai Hills Estate, DAMAC Hills and Jumeirah.
-
The annual rent of villas in Arabian Ranches 3 has remained AED 161k in Q3. A drop of 1.01% has been observed in the rent of 4-bed villas.
-
A dip has also been observed in the annual rent of Dubai Hills Estate and Jumeirah, averaging AED 338k and AED 401k, respectively.
-
For Al Barsha, the rent has been AED 414k after an increase of 5.34%.
-
The annual rent in DAMAC Hills has averaged AED 296k after an increase of 10.45% from Q2 2023.
DAMAC Hills 2 (Akoya by DAMAC), Mirdif, JVC, Dubai South and Reem have been the most searched areas for renting affordable villas.
-
The annual rent of villas in DAMAC Hills 2 has significantly increased by 18.68%, averaging AED 108k.
-
Similarly, the rent in Mirdif averaged AED 141k after an increase of 7.63%.
-
The rent of 3-bedroom villas in JVC has appreciated by 14.97% and 5.88% for 4-bedroom villas.
-
Dubai South and Reem leveraged from an increase of 6.93% and 7.47% in the annual rent, making it AED 108k and AED 187k for Q3 2023.
End=
About dubizzle:
dubizzle, a distinguished unicorn company based in Dubai, is an integral part of Dubizzle Group Holdings Limited. As the UAE’s largest property classified site, dubizzle plays a pivotal role in facilitating transactions across diverse categories such as properties, cars, jobs, and various goods.
The user-friendly platform, coupled with innovative features, has solidified dubizzle as the go-to destination for both buyers and sellers to effortlessly connect and transact. dubizzle takes pride in the unwavering commitment to values of transparency, authenticity and consumer protection, positioning dubizzle as a preeminent platform for ethical online commerce in the UAE.
#Nohustlenobustle #dubizzleit
