By Gavin Gibbon
Rents have dropped 5.7%, while apartments in JVC are down by up to 4%
Mirdif has retained its position as the most popular neighbourhood for renting villas in Dubai, according to the latest Q1 market report from UAE property website Bayut.
Average rents for three-bedroom villas in Mirdif have dropped 5.7 percent, from AED103,000 in Q4 2019, to AED97,000, while the rents for four and five-bed villas remain the same at AED119,000 and AED125,000 respectively.
In terms of apartments in the emirate, Jumeirah Village Circle (JVC) has witnessed rent drops of between two and four percent, with studios averaging AED34,000, one-beds AED48,000, and 2 BHK units going for AED70,000.
According to the report, the prices showed signs of the market bottoming out.
Dubailand’s The Villa was the most popular among buyers purchasing villas in Dubai, with the price per square foot declining marginally by 0.7 percent. This compares to a 2.5 percent increase in Arabian Ranches; while the price of villas on Palm Jumeirah went up by 5.3 percent per square foot in the first quarter.
Dubai Marina, meanwhile, continued to be the most sought-after location to purchase apartments, although the price per square foot (AED1,260) remained stable, as with other areas in Dubai, with properties in Business Bay, JVC and International City showing marginal declines of under five percent.
According to Dubai Land Department, there were 10,272 real estate transactions in the first quarter of 2020 amounting to AED20.86 billion – compared to 8,021 transactions in Q4 2019, worth AED15.94bn.
For investors keen on buying properties offering high return-on-investment based on projected rental yields in Dubai, International City remains one of the best options, offering a 9 percent ROI for apartments, while JVC has the best rental returns for villas at an average of 6.5 percent.
Bayut’s CEO Haider Ali Khan, said that while signs were positive in the first three months of the year, the full onset of the coronavirus outbreak is likely to have a big impact on the real estate sector.
He said: “Before this unfortunate global event impacted all of our lives, property prices across the emirate were showing encouraging signs of stabilising, based on Bayut’s data from the first quarter. We also noticed a surge in interest for residential property listings in Dubai with close to 15 million searches conducted in the first quarter. Similarly, there were also uplifting signs from a transactional perspective, with the DLD reporting well over 10,000 sales transactions from January to March 2020.”
“Although the first quarter shows some healthy numbers, we should be prepared to see some fluctuations in the coming months as the UAE continues to lead the region’s fight against Covid-19. While the government has been proactive by announcing stimulus packages to support the industry, we still need to wait and observe the impact on consumer interest in the following quarter.”