Considering the promising start to the year, Dubai's rising sale and rental prices are a sign of strong demand for real estate in both the reasonable and upscale pricing ranges.
With some months generating record-breaking sales transactions, it is evident the real estate sector is growing rapidly.
Recently, Bayut & Dubbizle combined their data to release a Dubai Property Market Report for H1 2022, detailed below is a brief overview of some of the current trends in various sectors.
Rental Yields
· The most impressive return on investment in H1 2022, at 6.97%, was generated by the luxury apartments in Dubai Marina, according to projected rental yields.
· On the other hand, the preferred option for investors looking for affordable homes has been DAMAC Hills, which has a projected ROI of 6.53%.
Off-plan projects
· Sobha Hartland in Mohammed Bin Rashid City has attracted the highest investor interest for off-plan apartments with those seeking luxury homes, but purchasers looking for off-plan upscale villas have been most drawn to Elan in Tilal Al Ghaf.
· Looking at the data for affordable off-plan demand, District 10 in JVC has attracted the most investor interest.
Apartment Sales
· Dubai Marina has continued to be a prime location for buyers and investors looking to purchase luxury apartments in Dubai.
· In H1 2022, the average sales price per square foot for apartments in Dubai Marina increased by 5.96 percent to AED 1,459.
· Downtown Dubai, Palm Jumeirah, Jumeirah Beach Residence, and Dubai Hills Estate are additional well-liked neighbourhoods. All of these areas' typical sale prices per square foot have increased by up to 7 percent.
Villa Sales
· Arabian Ranches has been the most sought-after neighbourhood for luxury villas for buy-to-let throughout the first half of 2022. The average sale price per square foot for villas in Arabian Ranches increased by 2 percent to AED 1,205.
· Moreover, there is also a significant amount of demand in the Dubai Hills Estate buy-to-let villas. In the first half of 2022, the price per square foot for villa residences in this region increased by 11.13 percent, averaging AED 1,489.
Apartment Rentals
· AED 34k for studios, AED 48k for one bed, and AED 70k for two bed apartments are the average rental rates for flats in JVC, with increases ranging from 7 to 16 percent. JVC has been a top choice for those looking to rent in Dubai.
· Additionally, tenants have been drawn to the rental homes in Business Bay, where prices have seen notable spikes of as much as 20.74 percent.
· According to the report, popular inexpensive villa communities experienced a steady increase in rental prices in the first half of 2022.
· A well-liked choice for renters seeking for inexpensive homes in Dubai is DAMAC Hills 2. Rental prices for 4 and 5 bed units have experienced moderate variations during H1 2022, up to 5%.
· Additionally, tenants prefer the reasonably priced family-friendly communities like JVC, Dubailand, and The Springs. Price rises of up to 29% have been observed in some areas.
