Real estate market trends from the ” Bayut ” website shed light on the performance of the real estate sector in the Emirate of Dubai during the first quarter of 2024, as real estate prices stabilized in areas that had witnessed an increase during the last quarter of last year, while other areas recorded increases and decreases in varying proportions. .
Based on search trends on the “Bayut” website, Dubai has continued to attract investors thanks to its many components, as the demand for purchasing real estate of various types and categories has increased, supported by the influx of more investors and property seekers in the emirate, and a group of new projects have been launched that attract Investors from around the world.
Most Popular Areas
According to data issued by the Bayut website, the most popular areas in Dubai recorded an increase in the prices of purchasing apartments and villas at different rates, some of which reached 7% during the first quarter of 2024.
Regarding real estate in the low price category, the data showed a significant demand from investors to purchase real estate in the “International City”, “Dubai South”, “DAMAC Hills 2” and “Dubailand” areas. On the other hand, those searching for properties in the mid-price category showed great interest in the areas of “Jumeirah Village Circle”, “Jumeirah Lakes Towers”, “Al Furjan” and “The Springs”.
Moreover, during the first quarter of 2024, those searching for luxury real estate showed their preference to invest in areas such as “Dubai Marina,” “Business Bay,” “Arabian Ranches,” and “Dubai Hills Estate.”
Real Estate Price Trend
The areas most in demand for purchasing low-priced apartments witnessed a decrease in sales deals ranging between 1% and 16%, with the exception of Dubai South, which recorded an increase of about 4.48%. On the other hand, low-priced villas saw an increase ranging between 7% and 62%, with Dubailand achieving the highest percentage of increase.
As for medium-priced properties, apartment prices witnessed a noticeable increase, ranging between 6% and 42%, with Jumeirah Lakes Towers achieving the highest increase. On the same level, villa prices witnessed an increase of about 5% and 14%, with the exception of the Al Furjan area, which witnessed a slight decrease of about 0.37%. Speaking of luxury real estate, most areas have witnessed an increase in sales prices by rates ranging between 2% and 23%.
Return on Investment
In terms of return on investment and based on expected rental returns for apartments, the Dubai Investment Park, Discovery Gardens, and Liwan areas have emerged as the most attractive options for investors, as they achieve investment returns of up to 11%.
Within the medium-priced apartment category, Bayut data showed that the Dubai Sports City, Dubai Silicon Oasis, and Motor City areas generate returns of up to 10%. On the other hand, the Green Community, Al Sufouh, and Damac Hills areas stand out as the most attractive areas for those looking for luxury apartments, as they achieve returns exceeding 8%, outperforming the majority of global markets.
As for returns on investment in Dubai villas, data showed that villas and townhouses in International City achieve a return exceeding 7%, while the “Damac Hills 2” and “The Valley Dubai” areas achieve returns exceeding 6%. Moreover, investment returns on mid-priced villas in Jumeirah Village Triangle, Jumeirah Village Circle and Mudon area range between 6% and 8%.
Within the luxury villa category, The Sustainable City in Dubai achieves a return on investment exceeding 7%, thanks to the advantages it offers and the limited supply in the real estate market, while Al Barari and Tilal Al Ghaf both generate returns on investment of up to 6%.
It is worth noting that the number of real estate sales transactions in Dubai during the first quarter of 2024, according to the Dubai Land Department, reached 36,946 transactions, whether residential or commercial real estate, with a total value reaching 109.6 Billion Dirhams.
Most Demanded Areas
Turning to the “Bayut” report on renting real estate in Dubai, search trends on the site showed that those searching for apartments at low prices preferred to live in the “Deira” and “Al Nahda” areas, while “Damac Hills 2” and “Mirdif” attracted those searching for Villas at low prices. On the other hand, “Jumeirah Village Circle” and “Bur Dubai” were the most requested to rent apartments at average prices, while “Jumeirah Village Circle” and “Arabian Ranches 3” were the most requested to rent villas at average prices.
Within the luxury real estate category, “Dubai Marina” and “Business Bay” were the two most popular areas for renting apartments, while those looking for villas preferred the “Dubai Hills Estate” and “Al Barsha” areas.
Real Estate Rental Trends
According to Bayut website data, rents for low-priced apartments saw an increase ranging between 1% and 17%, while average-priced apartments saw an increase of up to 12%. By contrast, rents for luxury apartments saw a decline of up to 4%.
Rents for low-priced villas decreased by about 3%, with an increase ranging between 1% and 7% in Mirdif, while rents for villas at medium prices recorded an increase of 2% to 17%, while some villas in Jumeirah Village recorded Circle” and “Town Square” decreased by about 2%. In addition, rents for luxury villas witnessed an increase of about 13%, noting that rents for 4-bedroom villas in “Al Barsha” and “Damac Hills” decreased by about 12% to 14%.
When analyzing average rental prices in Dubai, the percentage increase in areas with low prices for villas and apartments ranged between 1% and 5%. At the same time, rents for medium-priced apartments and villas increased by 12%. As for luxury apartments and villas, they witnessed an increase in rents by 5%, with the exception of rents for luxury villas in Damac Hills, which recorded a decrease of about 7.24%.
On the other hand, the demand for renting apartments and villas witnessed a noticeable increase during the first quarter of 2024, which indicates an increase in interest in properties suitable for families, especially within the middle price category and luxury properties.
Search trends on the “Bayut” website indicate that, despite the growth momentum in the real estate sector in Dubai during the first quarter of 2024, it was more stable compared to the last quarter of last year, and at the same time, the demand for renting and purchasing continued to rise. Apartments and villas, this is largely due to competitive prices and flexible financing and payment plans and programmes, in addition to government policies that support growth plans, stimulate the sector and maintain its dynamism.
Investor Confidence
Haider Ali Khan, CEO of Bayut and Dubizzle Group in the Middle East, said: “The real estate market in Dubai, as we have always known it, remains a promising market despite the ongoing global challenges, as the general trends of the market, investment opportunities, and growth strategies consolidate investors’ confidence in The sector, and the new projects and innovative methods used in projects still under construction, highlight the attractiveness of Dubai and its position as a regional and global real estate center.”
Khan continued, saying: As we face various challenges and opportunities ahead, strengthening cooperation and strategic planning will be pivotal to achieving returns and promoting sustainable growth in the real estate sector in Dubai. He also stressed: We will do our part to the fullest and take our responsibilities seriously by supporting the Land Department in Dubai, by providing advanced technical solutions to create a more transparent and credible environment, so that we reward real estate agents and advertising companies with high-quality content, and we will also delete incorrect ads even before they are published.