Bayut & dubizzle, the UAE’s leading property portals, have released their combined Dubai Property Market Report for Q3 2021, revealing that the emirate’s real estate sector continues to grow on an impressive trajectory in the third quarter of the year, with a healthy appreciation in sales and rental prices across most popular neighbourhoods. The global interest in Dubai as a result of the EXPO 2020 has also trickled down into the city’s real estate market based on the findings from the combined report generated based on search trends on the two property advertising powerhouses in the region.

• Bayut & dubizzle’s combined data reveals that properties for sale in Dubai have experienced upticks in price between 1% to 7% in Q3 2021.

• Prospective buyers have focussed their interests on properties in Jumeirah Village Circle (JVC), Akoya Oxygen, Jumeirah Lake Towers and Dubailand for reasonably-priced villas and apartments, while High-Net-Worth investors have preferred well-integrated communities such as Dubai Marina, Downtown Dubai and Arabian Ranches. The relatively new gated suburb of Dubai Hills Estate has also retained its popularity during Q3 2021.

• Dubai’s rental market has experienced moderate increases of up to 10% in asking prices for affordable apartments, while luxury flats have seen substantial upticks of up to 31%. The affordable villas in Dubai have seen a general increase under 14% in rental rates in Q3 2021, while the luxury segment has observed growth between 2% to 14% in asking rents.

• Tenants on a limited budget have shown an inclination for Jumeirah Village Circle (JVC), Al Nahda for apartments and Mirdif and Akoya Oxygen for villas. Dubai Marina and Downtown Dubai have captured the attention of tenants looking for upscale flats while Jumeirah and Al Barsha have been the most preferred areas for high-income renters looking for luxurious villas.
• Based on the data released by the Dubai Land Department, 10,164 sales transactions for residential properties worth AED 26.1B have been recorded in Dubai during the months of July and August. These two months recorded the best ever third quarter figures in the past 12 years. This could be as a result of the recent changes to long-term visa policies and the growing demand from end-users looking to upgrade their homes.

The upward trend in the Dubai property market has been driven by various factors: the UAE was recently ranked as the second-safest country in the world by Global Finance as well as one the most vaccinated nation for COVID-19 according to Reuters with official NCEMA figures showing 85% of the total UAE population being fully vaccinated. This has helped bolster the recovery of economic activity in the country and highlighted the UAE as an attractive destination for global investment.

Properties for Sale

Apartments:

Luxury apartments in Dubai have continued to boom in the second half of 2021 after a strong start.

• Dubai Marina has remained the long-standing favourite among those searching for luxury flats for sale. The average sales price-per-square-foot for apartments in Dubai Marina has appreciated by 5.25%, rising from AED 1,293 in Q2 2021 to AED 1,360 in Q3 2021.
• Other centrally-located popular areas such as Downtown Dubai and Business Bay have also experienced an increase in the average price-per-square-foot for apartments by 7% and 3% respectively. Jumeirah Beach Residence and Palm Jumeirah on the other hand have recorded upticks around the 6% mark.

In the affordable segment, apartments in newer areas like Jumeirah Village Circle have maintained their appeal for prospective buyers.

• Flats in Jumeirah Village Circle have become slightly more expensive, with the sales price-per-square-foot in Q3 2021, going from AED 816 to AED 828.
• Jumeirah Lake Towers, Dubai Silicon Oasis, Dubai Sports City and International City have also attracted buyer interest for reasonably priced flats. These popular locations have seen the average sales price-per-square-foot increase by up to 5%.

Villas:

According to the trends observed on Bayut & dubizzle, sale prices in luxury villa districts have appreciated across the board in Q3 2021.

• The family-friendly Arabian Ranches community has continued to be the firm favourite for luxury villas in the third quarter of 2021. The price-per-square-foot of villas for sale in Arabian Ranches averages at AED 1,186, up from AED 1,154 in Q2 2021.
• The new development of Dubai Hills Estate has also attracted significant buyer and investor attention, with the average price-per-square-foot increasing by 4% to stand at AED 1,298 for villas.
• Other luxury residential developments such as Palm Jumeirah and The Villa have also recorded moderate growth of under 5% in sales prices of villas, averaging at AED 2,933 and AED 772 respectively.

In Q3 2021, DAMAC Hills 2 (Akoya Oxygen) has continued to be the most popular location among prospective buyers for competitively-priced villas.

• The price-per-square-foot for villas for sale in DAMAC Hills 2 (Akoya Oxygen) has increased by almost 7% in the third quarter of the year, averaging at AED 610.
• The price-per-square-foot for villas in other suburbs such as Jumeirah Village Circle and Dubailand have seen increases between 3% to 5%.
• Integrated developments such as The Springs and Al Furjan have also garnered the interest of potential investors and buyers in the third quarter of 2021. Both communities have experienced an uptick in sales prices between 2% and 5%, revealing a healthy demand for affordable, family-friendly communities.

Rental Yields in Dubai

• Properties in International City have generated healthy returns-on-investment of 7.37% for apartments in the affordable category.
• When it comes to luxury apartments, based on projected rental yields, Dubai Marina has continued to yield a strong ROI of 5.56% in Q3 2021.
• Villa properties in Jumeirah Village Circle have continued to generate healthy rental returns of 6.34% in the budget category.
• Palm Jumeirah with a projected ROI of 5.34% has emerged as an investor favourite for high yielding luxury homes.

Off-plan Projects in Dubai

• As per the combined data released by Bayut & dubizzle, Binghatti Mirage in Jumeirah Village Circle has attracted the highest number of prospective buyers for affordable off-plan apartments, while Amargo in DAMAC HILLS 2 (Akoya Oxygen) has dominated the search volumes for competitively priced off-plan villas.
• In the luxury segment, Regalia by Deyaar in Business Bay has been the most sought-after for off-plan apartments, while investors looking for upscale off-plan villas have shown the most interest in DAMAC Hills Trump Estates.

Properties for Rent 

Apartments: 

Tenants on a budget have shown an inclination towards Jumeirah Village Circle (JVC) for affordable apartments in Q3 2021.

• The rental costs for flats in JVC have moderately increased by 1% to 5%. The average rent for studios here stands at AED 28k for studios, whereas the 1-bed and 2-bed apartments for rent are priced at AED 43k and AED 62k respectively.
• Al Nahda,  Bur Dubai, Dubai Silicon Oasis and Deira have also remained popular options for affordable flats. Average rents in these neighbourhoods have largely remained unchanged. However upto 10% increases recorded in rental costs for studio flats.

Dubai Marina has remained the most sought-after community for luxury apartment rentals in the third quarter of 2021, based on Bayut & dubizzle’s combined analysis.

• The average rents in Dubai Marina have experienced an uptick of 6% to 12% in Q3 2021. The rents for 1-bed flats have increased from AED 61k to AED 67k, whereas the 2 and 3-bedroom apartments now cost AED 103k and AED 156k on average, respectively.
• Average prices for rental apartments in Downtown Dubai have increased by up to 31%, with the highest increase recorded for 3-bed units mainly due to the handover of certain upscale units in luxury projects such as The Address Residences Fountain Views. On the other hand, rental costs for flats in City Walk have recorded decreases of up to 10% in Q3 2021.
• Tenants’ demand for luxury waterfront apartments has remained steady in Q3 2021, based on the trends observed on Bayut & dubizzle. Palm Jumeirah and Jumeirah Beach Residence (JBR) have experienced increases in average rents between 5% to 14% in the third quarter of 2021.

Villas:

In the affordable segment, Mirdif has continued to be the top choice for villa rentals among prospective tenants during Q3 2021.

• The rents for houses in Mirdif have experienced minor fluctuations, decreasing by 2.4% to stand at AED 104k for 4 bed homes and increasing by 3.3% to average at AED 111k for 5-bed villas. However, the average rent for 3-bed villas in Mirdif has remained steady at AED 84k.
• Prospective renters in search of budget-friendly villas have also shown preference for suburban communities such as DAMAC Hills 2 (Akoya Oxygen), Dubai South and Reem.
• Jumeirah Village Circle has recorded a substantial increase in rental costs for 5-bed villas, rising from AED 134k in Q2 2021 to AED 191k in Q3 2021, owing to the influx of new District 16 villas into the inventory.

According to Bayut & dubizzle’s combined market report, rental costs for luxury villa communities have seen a general uptick for all bed types in the third quarter of 2021.

• Jumeirah has remained the most searched-for community for luxury villas in Q3 2021. The average rents for villas in Jumeirah have increased across the board by upto 6%, with 4-bed villas averaging at AED 178k, 5-beds at AED 224k and 6-bed villas at AED 323k.
• Villas in Umm Suqeim and Al Barsha have also seen increases consistent with the price boom, recording 5% to 12% increases in rental costs for 4, 5 and 6-bed villas.
• High-income tenants have also shown inclination towards prime gated developments such as Arabian Ranches and Dubai Hills Estate. The asking rents for villas in Dubai Hills Estate have also experienced an uptick in Q3 2021, rising between 7% and 14%.

Commenting on the findings, Haider Ali Khan, the CEO of Bayut & dubizzle and the Head of EMPG MENA said: “The trends we have observed on Bayut & dubizzle definitely confirm the overall market sentiment that there is growth in the Dubai real estate market, fuelled by multiple factors including the launch of the much awaited Expo 2020.”

“Other strategic reforms such as the introduction of remote work visas, expansion of the Golden Visa criteria for greater inclusivity and lowering of the minimum amount required for an investor’s visa have also been pivotal in improving the country’s business infrastructure, attracting global investors and subsequently increasing the appetite for real estate. On Bayut & dubizzle too we have seen a steady growth in traffic, generating over 22 million sessions in the last quarter alone.”

“Now that the global attention has turned to Dubai with the EXPO 2020, we can expect this interest to sustain and even grow further in the upcoming months, with both local and global investors, buyers and tenants wanting to take advantage of the booming market and economy in the region.”