According to a new study, the real estate market in Dubai is booming due to strong buyer demand, which has caused house prices to rise by up to 34 percent and rentals to rise by 46 percent in some locations during the past year.
According to Chestertons MENA’s data for Q3 2023, homes and flats in well-known neighborhoods like Dubai Hills and Palm Jumeirah are fetching high premiums.
The highest price increase in Dubai Hills was for villas, which now cost an average of AED2,409 per square foot, a 34 percent increase over the same time last year. Apartment rent in the neighborhood increased by 25% to AED1,882 per square foot.
Apartments in Palm Jumeirah, on the other hand, had a 17 percent increase in price to AED2,632 per square foot, while Downtown Dubai and Dubai Marina also saw double-digit price growth.
Dubai rents surging rapidly
The worth of rental properties has also benefited from consistent price growth. The top neighborhoods in the emirate had annual increases in residential lease rates of up to 46%, according to Chestertons MENA’s analysis.
Currently, the average annual rent for a three-bedroom house in Dubai Hills is AED279,000, which is about half what it was in 2022. Two-bedroom apartments in upscale neighborhoods like Downtown Dubai and the Palm Jumeirah are renting for up to 27% more per year.
Average rent prices in Dubai residential real estate market
The emirate’s rising appeal as a residential market is reflected in the soaring demand and pricing.
“Dubai’s real estate sector continues to flourish, with residential and commercial property in significant demand,” said Nicky Witty, CEO of Chestertons MENA.
“Dubai Hills has seen the strongest growth in both apartment and villa prices, with impressive year-on-year increases also seen a Mohamed bin Rashed City apartments – a reflection of the popularity and evolution of these communities as they mature.”
As international businesses and an expat workforce continue to pour into the emirate, all criteria point to a robust real estate market.