Dubai: Several areas in Dubai have seen property prices rise by as much as 7 percent as a result of the Expo.
In Dubai’s rental market, rental prices for affordable apartments rose by up to 10 percent, while prices for luxury apartments increased by up to 31 percent. Rents for the affordable segment of Dubai’s villas increased by less than 14 per cent in the third quarter, while rental rates for the luxury segment increased by 2 to 14 per cent.
Tenants on a limited budget tend to favor Jumeirah Village Circle (JVC), Al Nahda for apartments, and Mirdif and Akoya Oxygen for villas. While apartments in Dubai Marina and Downtown Dubai are popular with tenants looking for upscale flats, Jumeirah and Al Barsha are popular with high-income renters seeking beautiful villas.
Boom in the real estate market
In the third quarter, Bayut and Dubizzle reported that the prices of properties for sale in Dubai rose between 1 and 7 percent. “Dubai’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,” says the report. “The global interest in Dubai as a result of the Expo 2020 has also trickled down into the city’s real estate market.”
Prospective buyers have focused 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. Dubai Hills Estate, a relatively new gated community, also retained its popularity in the third quarter.
The best numbers ever
Dubai Land Department data indicates that during the months of July and August, there were 10,164 sales of residential properties worth Dh26.1 billion. The past two months were the best ever in the past 12 years for the third quarter. “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,” said the report.