Dubai rents continue to skyrocket, most searched areas revealed: Report

The increase in property prices for the emirate’s real estate has been fuelled by strong demand from both local and international property seekers.

According to the data by Bayut, sales prices for villas and apartments in popular areas has seen an uptick of up to 17 percent in the first half of the year.

Jumeirah Village Circle (JVC), Jumeirah Lake Towers, DAMAC Hills, and Furjan emerged as areas of key interest. High-net-worth investors however, have shown interest in areas such as Dubai Marina, Downtown Dubai, Arabian Ranches, and Dubai Hills Estate.

Areas with affordable apartments have also seen a price uptick with reasonably priced villas in in-demand areas are seeing an increase of up to 50 percent.

Luxury villa properties have experienced a whopping increase in rental rates of up to 70 percent.

Residents who are seeking affordable apartments have cited Jumeirah Village Circle (JVC) and Bur Dubai as areas of interest. Tenants looking for villas have shown interest toward neighbourhoods such as DAMAC Hills 2 and Mirdif.

Luxury property enthusiasts have expressed interest in Dubai Marina and Business Bay while those seeking luxury villas look towards Dubai Hills Estate and Al Barsha.

During the first half of the year over 60,900 sales transactions were recorded worth AED179.3 billion, according to data by the DLD. Price hikes in most areas are attributed to increased demand.

As for sales, Dubai Marina has remained an area of investor interest with the average sales price per square foot appreciating by 5.6 percent.

Investors have also shown interest toward areas such as Downtown Dubai, Business Bay, Palm Jumeirah and Jumeirah Beach Residence.

For affordable apartments, Jumeirah Village Circle has remained top choice for investors with an uptick of 4.96 percent in average sales price.

Investors seeking affordable apartments have also shown interest in Jumeirah Lake Towers, Dubai Silicon Oasis, Dubai Sports City and International City.

Those seeking luxury villas have looked towards Arabian Ranches, Dubai Hills Estate, DAMAC Hills, Palm Jumeirah and Jumeirah Park with most areas recording interest of up to 17 percent.

Off-plan projects continue to see a rising interest in the emirate in areas such as JVC, Dubailand and Emaar Beachfront. For investors seeking luxury off-plan properties, Alaya located in Tilal Al Ghaf has remained top choice.

Dubai real estate: Record high prices and increasing transactions

Haider Ali Khan, the CEO of Bayut and the Head of Dubizzle Group MENA said, “Six months in, and we’re enjoying fabulous results. Prices are at a record high, traffic is steadily rising and transactions are also increasing month on month. A simple search of our new and improved Dubai transactions tells you that the volume of sales transactions has gone up nearly 12 percent and value has increased by almost 20 percent. There is a lot of positive movement of wealth into the UAE as evidenced by the much talked about millionaire migration.”

Multiple reports have also confirmed that HNWIs from various parts of the world have earmarked a substantial budget towards property investments in the UAE. We proactively launched our Chinese version in anticipation of this changing market dynamic, and will follow it up with other innovations as well. We can also really see the supply vs demand dynamics playing out strongly in the rental market, with traditionally popular areas constantly being outpriced because of the supply crunch,” Khan explained.

“The constant increase in rental prices has also prompted more people to take the plunge into homeownership, so the money they are allocating towards real estate ends up creating an asset in the long term. A strong focus on PropTech and transparency has also aided in creating a more positive outlook for the market overall, and we are excited to be a part of our city’s fantastic journey of growth,” he concluded.