Dubai saw a 12.2 percent rise in the volume of real estate sale transactions during the first half (H1) of 2024 compared to H2 2023, revealed the latest official Dubai Land Department data.
With a steady rise in property prices and the growing scope of rental properties across Dubai, the growth in the sector has reflected a strong demand and greater confidence for buyers and renters. Dubai’s real estate sector has thrived amid people-centric urban developments, investor-friendly policies and an appealing tax-free environment.
“We continue to see an upward trend driven by a variety of factors, including enhanced investor facilitation, transparent property transactions, and the introduction of new off-plan projects amongst others,” stated the CEO of Bayut & dubizzle and Head of Dubizzle Group MENA, Haider Ali Khan.
Another major factor propelling Dubai’s real estate sector is the influx of new residents following the government’s introduction of new resident visas. “The city has welcomed more than 25,000 new residents in just the first quarter of 2024, which has predominantly fueled the demand for property,” added Khan.
Top property locations across Dubai
The latest analysis of dubizzle’s search trends in H1 2024 reveals key highlights across the sector. The report reveals that Dubai Hills Estate has been the top choice for luxury villas with an average sales price of AED15.99 million. Meanwhile, Dubai Marina garnered the top position for both buying and renting luxury apartments, with an average sales price of AED2.54 million and an annual rent of AED153,000.
As for affordable real estate, DAMAC Hills 2 emerged as the most popular option among affordable villa communities in Dubai, with an average asking price of AED1.93 million. Meanwhile, Jumeirah Village Circle and International City have remained the most preferred destinations for affordable apartment seekers in Dubai. For budget-friendly rental apartments, Deira and International City have outperformed other areas in H1 of 2024.
Locations with the highest ROI
Dubai’s Arabian Ranches 3 has the highest return on investment (ROI) of 6.42 percent for luxury villas, whereas luxury apartments in Dubai Creek Harbour yielded an ROI of 6.49 percent during H1 2024.
Besides, Dubai Silicon Oasis (DSO) has captured investor attention as the affordable apartment area with the highest ROI at 9.19 percent. When it comes to affordable villas, DAMAC Hills 2 generated the highest ROI of 7.25 percent.
Most popular locations for buying property
In H1 2024, Dubai’s real estate sector saw a surge in demand for buying property in several locations across the city. Dubai Marina, Business Bay and Downtown Dubai have been the top three communities for buying luxury apartments in Dubai. Meanwhile, buyers seeking affordable apartments have mostly looked into areas like JVC, International City and Dubai Silicon Oasis.
For buyers looking for upscale villa communities, areas including Dubai Hills Estate, Palm Jumeirah and DAMAC Hills have captured the most attention during H1 2024. Meanwhile, the most popular locations for affordable villas were DAMAC Hills 2, Dubailand and JVC.
Read: UAE citizens can now claim VAT refunds for new home construction via new smart app
Most popular rent locations
The report also revealed notable trends in the rent market across Dubai with most areas witnessing an increase in rent prices.
Tenants looking for luxury apartments preferred Dubai Marina, Business Bay and Downtown Dubai during H1 of 2024 while those looking for affordable apartments leaned more towards Deira, International City, Al Nahda (Dubai), JVC and Bur Dubai.
As for tenants seeking luxury villas, Al Barsha, Dubai Hills Estate and Jumeirah remained the top three choices. Meanwhile, DAMAC Hills 2, Mirdif and Dubai South have been the three most searched areas for renting affordable villas.
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