With the launch of Expo 2020, real estate prices are rising – Dubai Blog

The UAE’s leading real estate portal Bayut & dubizzle released a comprehensive report on the Dubai real estate market for the third quarter of 2021, showing that the real estate industry in the emirate continued to grow at an impressive trajectory in the third quarter of this year. Rental prices in popular neighborhoods. According to the survey results of a comprehensive report generated based on the search trends of two real estate advertising giants in the region, the global interest in Dubai caused by the 2020 World Expo has gradually penetrated into the city’s real estate market.

• Comprehensive data from Bayut & dubizzle shows that in the third quarter of 2021, the price of properties for sale in Dubai increased by 1% to 7%.

• Potential buyers will focus their interest on properties in Jumeirah Village Circle (JVC), Akoya Oxygen, Jumeirah Lakes Towers and Dubai Land to obtain reasonably priced villas and apartments, while high-net-worth investors prefer Dubai Marina and Dubai Downtown and Arabian Ranches. The relatively new closed suburb of Dubai Hills Estate also maintained its popularity in the third quarter of 2021.

• The asking prices of affordable apartments in Dubai’s rental market have risen moderately by 10%, while the prices of luxury apartments have risen sharply by 31%. By the third quarter of 2021, rents for affordable villas in Dubai have generally increased by less than 14%, while asking rents for luxury villas have increased by 2% to 14%.

• Tenants with limited budgets tend to choose Jumeirah Village Circle (JVC), Al Nahda Apartments and Mirdif and A​​koya Oxygen villas. Dubai Marina and Downtown Dubai attract the attention of tenants looking for high-end apartments, while Jumeirah and Al Barsha are the preferred areas for high-income tenants looking for luxury villas.
• According to data released by the Dubai Land Bureau, during July and August, Dubai recorded 10,164 residential property sales transactions valued at AED 26.1B. These two months set the best third-quarter data in the past 12 years. This may be due to recent changes in long-term visa policies and the growing demand from end users who wish to upgrade their homes.

The upward trend of the Dubai real estate market is driven by many factors: According to reports from Reuters and the official NCEMA, the UAE has recently been rated as the second safest country in the world by global finance and one of the countries with the highest COVID-19 vaccination rate. It shows that 85% of the total population of the UAE has been fully vaccinated. This helps promote the recovery of economic activity in the country and highlights the UAE as an attractive destination for global investment.

Property for sale

apartment:

After a strong start, Dubai’s luxury apartments will continue to flourish in the second half of 2021.

• For a long time, Dubai Marina has been a favorite of those looking for luxury apartments for sale. The average selling price per square foot of Dubai Marina apartments increased by 5.25%, from AED 1,293 in the second quarter of 2021 to AED 1,360 in the third quarter of 2021.
• In other popular downtown areas, such as Downtown Dubai and Business Bay, the average price per square foot of condominiums has also increased by 7% and 3%, respectively. On the other hand, the growth of Jumeirah Beach Residence and Palm Jumeirah was about 6%.

In the affordable market segment, apartments in newer areas such as Jumeirah Village Circle remain attractive to potential buyers.

• Apartment prices in Jumeirah Village Circle are slightly higher, with the sales price per square foot rising from Dh816 to Dh828 in the third quarter of 2021.
• Jumeirah Lakes Towers, Dubai Silicon Oasis, Dubai Sports City and International City have also attracted buyers’ interest in affordable apartments. The average selling price per square foot of these popular locations has increased by 5%.

villa:

According to the trend observed by Bayut & dubizzle, the selling price of luxury villas will increase across the board in the third quarter of 2021.

• In the third quarter of 2021, the family-friendly Arabian Ranch community continues to be a favorite of luxury villas. The average price per square foot of villas for sale in Arabian Ranches was AED 1,186, higher than the AED 1,154 in the second quarter of 2021.
• The new development of Dubai Hills Estate also attracted the attention of a large number of buyers and investors. The average price per square foot of villas increased by 4% to 1,298 dirhams.
• The sales prices of villas in other luxury residential developments such as Palm Jumeirah and The Villa also recorded a modest increase of less than 5%, with an average of AED 2,933 and AED 772, respectively.

In the third quarter of 2021, DAMAC Hills 2 (Akoya Oxygen) continues to be the most popular villa location with competitive prices among potential buyers.

• The price per square foot of DAMAC Hills 2 (Akoya Oxygen) villas for sale rose nearly 7% in the third quarter of this year to an average of Dh610.
• The price per square foot of villas in Jumeirah Village Circle and Dubailand and other suburbs has increased by 3% to 5%.
• In the third quarter of 2021, integrated development projects such as The Springs and Al Furjan also attracted interest from potential investors and buyers. Sales prices in these two communities have both increased by 2% to 5%, demonstrating a healthy need for affordable family homes-friendly communities.

Rental yields in Dubai

• The properties in the International City have brought a healthy return on investment of 7.37% for affordable apartments.
• In terms of luxury apartments, Dubai Marina will continue to generate a strong return on investment of 5.56% in the third quarter of 2021 based on projected rental yields.
• Jumeirah Village Circle’s villa properties continue to generate a healthy rental return of 6.34% in the budget category.
• The Palm Jumeirah, with an estimated investment return of 5.34%, has become a favorite among investors for high-yield luxury homes.

Off-plan housing projects in Dubai

• According to comprehensive data released by Bayut & dubizzle, Binghatti Mirage in Jumeirah Village has attracted the largest number of potential buyers of affordable off-the-plan apartments, while DAMAC HILLS 2 (Akoya Oxygen)’s Amargo dominates the competitive price. Search for off-plan villas.
• In the luxury housing sector, Regalia by Deyaar in Business Bay has always been the most popular off-plan apartment, and investors looking for high-end off-plan villas have shown the greatest interest in DAMAC Hills Trump Estates.

Rental property

apartment:

Tenants with limited budgets tend to purchase affordable apartments in the Jumeirah Village Circle (JVC) in the third quarter of 2021.

• The rental cost of JVC apartments has risen modestly by 1% to 5%. The average rent for a studio apartment here is AED 28,000, while the rents for a 1-bed and 2-bed apartment are AED 43,000 and AED 62,000, respectively.
• Al Nahda, Bur Dubai, Dubai Silicon Oasis and Deira also remain popular choices for affordable apartments. The average rent in these communities remained basically unchanged. However, the rent of a studio apartment has risen by 10%.

According to Bayut & dubizzle’s comprehensive analysis, Dubai Marina is still the most popular luxury apartment rental community in the third quarter of 2021.

• Average rents at Dubai Marina have increased by 6% to 12% in the third quarter of 2021. The rent for one-bedroom apartments rose from AED 61,000 to AED 67,000, while the price of two- and three-bedroom apartments is now Dh 103,000 and the average AED is 156k respectively.
• The average price of rental apartments in Dubai’s city centre rose by 31%, with the highest increase for 3-bedroom apartments, mainly due to the handover of some high-end apartments in luxury projects such as The Address Residences Fountain Views. On the other hand, the rental cost of City Walk apartments fell by 10% in the third quarter of 2021.
• According to the trends observed by Bayut & dubizzle, tenant demand for luxury beachfront apartments remained stable in the third quarter of 2021. In the third quarter of 2021, the average rent of Palm Jumeirah and Jumeirah Beach Residences (JBR) increased by 5% to 14%.

villa:

In the affordable market segment, Mirdif continues to be the first choice for villa rental among potential tenants in the third quarter of 2021.

• House rents in Mirdif fluctuated slightly, with 4-bed rooms falling 2.4% to Dh104,000, and 5-bed villas rising an average of 3.3% to Dh111,000. However, the average rent for a three-bedroom villa in Mildiv has stabilized at AED 84,000.
• Potential tenants looking for affordable villas also showed a preference for suburban communities such as DAMAC Hills 2 (Akoya Oxygen), Dubai South and Reem.
• Due to the influx of new villas in the 16 districts, the rents of 5-bed villas in the Jumeirah Village Circle have risen sharply, from Dh134,000 in the second quarter of 2021 to Dh191,000 in the third quarter of 2021.

According to Bayut & dubizzle’s comprehensive market report, by the third quarter of 2021, the rental costs of all bed-type luxury villa communities will generally increase.

• Jumeirah remains the community with the highest search volume for luxury villas in the third quarter of 2021. The average rent of Jumeirah villas increased by 6% across the board. The average rent for 4-bed villas was AED 178,000, 5-bed villas averaged AED 224,000 and 6-bed villas were priced at AED 323,000.
• Villas in Umm Suqeim and Al Barsha have also risen in line with price increases, and rents for 4, 5 and 6-bed villas have increased by 5% to 12%.
• High-income tenants have also shown a tendency towards major closed development projects such as Arabian Ranches and Dubai Hills. The asking rent of Dubai Hills Villas also increased in the third quarter of 2021, with an increase of between 7% and 14%.

When commenting on the survey results, Haider Ali Khan, CEO of Bayut & dubizzle and head of EMPG MENA “The trends we observed on Bayut & dubizzle certainly confirm the overall market sentiment that the Dubai real estate market is growing, which is driven by a variety of factors, including the long-awaited launch of Expo 2020.”

“Other strategic reforms, such as the introduction of remote work visas, the expansion of the Golden Visa standard to increase inclusiveness, and the reduction of the minimum amount required for investor visas, are important for improving the country’s business infrastructure, attracting global investors and subsequently increasing the appetite for real estate. At Bayut & dubizzle, we also saw a steady increase in traffic, generating more than 22 million sessions in the last quarter alone.”

“Now, with the opening of the Expo 2020, global attention has turned to Dubai. We can expect this interest to continue and even grow further in the coming months. Local and global investors, buyers and tenants all hope to take advantage of the booming The developing market and the region’s economy.”