According to a recent study, residents looking for affordable accommodation in the emirate preferred Jumeirah Village Circle in Dubai.
According to data from Bayut and Dubizzle, rental prices in the region, which is south of Dubai, grew by 7 to 16 percent, averaging AED34,000, AED48,000, and AED70,000 for a studio, 1-bed, and 2-bed flats, respectively.
With an increase from 2 percent to 21 percent, Al Nahda, Bur Dubai, Business Bay, and Deira have also become well-liked neighborhoods for affordable homes in the UAE.
According to the survey, pricing for “reasonably-priced” rental apartments in Dubai’s most popular neighborhoods has increased by up to 21 percent, while costs for luxury apartments have increased by up to 43 percent.
The rise is due to the “healthy demand for property in both the affordable and luxury segments of the market,” Bayut and Dubizzle said in a statement, which is mainly seen among global investors and expatriates.
“Over the first half of this year, many pivotal changes have been taking place both within the region and globally. With the focus on safety and security being understandably high, Dubai has stood out as an appealing option, particularly for international investors and ex-pat owners,” said the chief executive officer of Bayut and Dubizzle and head of EPMG MENA, Haider Ali Khan.
He added that approximately 35 million sessions between property seekers interested in Dubai’s real estate and Bayut and Dubizzle were held in the previous six months.
According to the survey, Mirdif has become “the most preferred area” for finding affordable villas, with a 7 percent increase in rental costs. Despite a 29 percent increase in rental prices, tenants have also sought out the outlying communities of JVC, Dubailand, and The Springs.
The rental costs for four and five-bed units increased, while the costs for three-bed units remained stable, in DAMAC Hills 2, where there was a mild fluctuation of 5%.
Rental prices of luxury apartments, villas
In the Dubai Marina and Al Barsha of the emirate, tenants also sought out pricey rental apartments and luxurious villas, with Al Barsha reporting a 15% increase in four and five-bed units.
According to the survey, rental rates for apartments in Dubai Marina increased from 16 to 22 percent over the course of the first six months, with a one-bed unit costing an average of AED 88,000.
Due to the increased availability of Elite Downtown Residence and Armani Residence properties, rental rates in Downtown Dubai also jumped from 3% to 43%. Additionally, during the past six months, rental apartments at Palm Jumeirah have increased by 22%.
According to the survey, rental rates for one- and three-bedroom apartments increased dramatically while rates for two-bedroom apartments decreased by less than 3%.
Jumeirah also continues to draw wealthy renters searching for opulent property rentals despite prices rising from 14 to 17 percent.
Property hunters have also turned their attention to Dubai Hills Estate, Umm Suqeim, and Arabian Ranches as villa prices increased by 4% to 30%.
Rental yields for investors
Affordable flats at Dubai Sports City (pictured) have shown a profit over the last six months, with growth in yields of 8.04 percent.
The return on investment for Dubai Marina and DAMAC Hills over the first six months was 6.97 percent and 6.53 percent, respectively, according to the report. The rental returns for Arabian Ranches 2 were 6.12 percent as well.
In the most sought-after areas of the emirate, sales prices for villas and flats increased from 1% to 19%, according to the survey.
JVC remained the most attractive option for potential investors looking for affordable apartments, while Dubai Marina remained well-liked for sales of luxurious apartments.
Through this data, Khan also emphasized that the real estate market needs to be “transparent and technologically advanced.”
He added: “We too have launched our next generation property search experience, Search 2.0 on Bayut to allow people to have a more well-rounded and thorough browsing experience that factors in their two most important commute points.”
According to him, the real estate market would most certainly experience a significant price increase in the near future.