The Dubai real estate sector saw rents increase by as much as 66 per cent last year, according to online property platform Dubizzle’s much-awaited Dubai Annual Property Market Report.
The report has revealed strong demand backed by high rental yields as well as identifying key trends in the city real estate market.
Primary data gathered by the leading property platform in the UAE from site visits and user behaviour throughout 2023 showcase positive trends across the board, driven by the UAE’s strong economic outlook and attractiveness as a place to live and work.
Dubai real estate 2023
In 2023, Dubai’s real estate sector marked another prosperous year, with business-friendly policies attracting more tenants to the market.
The upward trends in the rental segment is welcome news for investors with a keen interest in the city, said dubizzle.
The report highlights 2023 as the “Year of Affordable Villas”, with Dubai residents renting standalone homes in greater numbers.
Affordable villa rentals increased by 16.64 per cent, with DAMAC Hills 2 emerging as the most popular affordable area for villa rentals, with an average yearly rent of AED96,000 ($26,100).
Other areas like Mirdif, JVC, and Dubailand also maintained a steady popularity, offering villas with annual rents below AED200,000 ($54,500).
Al Barsha, meanwhile, remained popular with those wanting larger, private spaces, boasting an average annual rental price of AED388,000 ($105,600), followed by Jumeirah and the newer Dubai Hills Estate.
Dubai also witnessed some of the most significant rent increases in recent years, with areas like Dubailand and Al Barsha seeing the biggest spikes (42.54 per cent and 31.08 per cent respectively).
JVC saw a rise of 32 per cent in the average year rent for apartments, and Damac Hills experienced a substantial increase of 66.67 per cent in annual rental prices.
The trend for luxury apartments held sway in 2023, with Dubai Marina maintaining its status as the top luxury area for apartment rentals, with average annual rents surging to AED148,000 ($40,300).
Business Bay and Downtown Dubai also saw substantial increases in average yearly rent for apartments.
Business Bay witnessed the highest increase in average rental prices for luxury apartments, with a rise of 21.05 per cent.
Downtown Dubai became the third most popular area for apartment rentals, with an average annual rent of AED214,000 ($58,270) in 2023, indicating a growing demand for high-end living in Dubai.
Haider Khan, CEO of dubizzle, said: “Our 2023 Annual Property Market Reports for Dubai and Abu Dhabi not only highlight dubizzle’s leading position among real estate platforms but also shed light on the booming nature of the UAE’s leading property markets.
“It’s a well-documented fact that 2023 has been a defining year for UAE real estate. The data gathered from property seekers who generated over 77m page views for listings on dubizzle for Dubai and nearly 14m page views for Abu Dhabi in 2023, provides further evidence that the UAE’s property market is going from strength to strength.
“This high online engagement, coupled with the strong numbers shared by both DLD and DARI for transactions in 2023, reflects the prevailing positive sentiment in the market.
“We will have to wait and see how the market performs over the course of this year, however early indicators suggest that this positive sentiment will remain strong in 2024 as well.”
Dubizzle’s Annual Property Sales market also showcased a prosperous year of growth and resilience for the real estate sector.
Amid new ready projects, a surge in sales of off-plan properties, and business-friendly policies, the city has attracted significant investor attention.
According to the report, the average sales price of apartments and villas in both luxury and affordable categories saw a considerable increase in 2023.
Jumeirah Village Circle emerged as the top choice for affordable apartments, followed by Dubai Silicon Oasis and International City.
In contrast, luxury flats in Dubai Marina, Business Bay, and Downtown garnered the most attention.
The report also highlighted areas that offer the highest Return on Investment (ROI) for both affordable and luxury apartments.
Liwan and Green Community led the list with impressive ROIs of 9.46 per cent and 9.49 per cent, respectively based on projected rental yield.
As per user search trends on dubizzle, DAMAC Hills 2 has emerged as the top area for affordable villas in the city, followed by Dubailand and Jumeirah Village Circle.
Meanwhile, with an overall increase of 14.37 per cent, Dubai Hills Estate has become the most-searched area among buyers interested in luxury villas.
With more and more Dubai residents seeking to put down their roots in the emirate and buy homes instead of renting in the long-term, the report also pointed out that high ROIs in certain areas highlight them as particularly lucrative for investment purposes.
Areas like Liwan, Green Community, DIP, and Al Barari showcase impressive returns, indicating strong investor interest and potential for long-term gains.
Popular areas with high ROI include:
- Silicon Oasis: 8.59 per cent
- Sports City: 8.38 per cent
- International City: 7.98 per cent
And for villas:
- Jumeirah Village Circle: 7.98 per cent
- DAMAC Hills: 6.84 per cent
- Dubailand: 6.83 per cent
Follow us on
