According to the highly anticipated Dubai Annual Property Market Report from online property platform Dubizzle, rents in the Dubai real estate market increased by as much as 66% last year.
The research has identified significant trends in the city real estate market and strong demand supported by high rental yields.
Primary data from site visits and user behavior collected by the top property platform in the UAE throughout 2023 show encouraging trends everywhere. These trends are fueled by the UAE’s favorable economic outlook and allure as a place to live and work.
Dubai real estate 2023
Dubai’s real estate industry had a successful year in 2023 as more tenants entered the market due to business-friendly regulations.
According to Dubizzle, investors who have a strong interest in the city will be pleased to hear about the increasing trends in the rental market.
According to the report, 2023 will be remembered as the “Year of Affordable Villas,” with more Dubai residents renting single-family homes.
With an average annual rent of AED96,000 ($26,100), DAMAC Hills 2 emerged as the most popular affordable area for villa rentals. The number of affordable villa rentals increased by 16.64 percent.
There were villas in other areas such as Mirdif, JVC, and Dubailand that remained popular year-round at less than AED 200,000 ($54,500).
Those seeking more expansive, private areas continued to favor Al Barsha, which boasts an average annual rental price of AED388,000 ($105,600). Jumeirah and the more recent Dubai Hills Estate follow.
Some of the largest rent increases in recent memory have also occurred in Dubai, with the largest increases (42.54 percent and 31.08 percent, respectively) occurring in areas like Dubailand and Al Barsha.
The average annual rent for apartments increased by 32% at JVC, while the annual rental prices in Damac Hills significantly increased by 66.67%.
The demand for luxury apartments continued to grow in 2023, with average yearly rentals reaching AED148,000 ($40,300) in Dubai Marina, which continues to be the most affluent neighborhood for apartment rentals.
Significant increases have also been in the average annual rent for apartments in Business Bay and Downtown Dubai.
With a rise of 21.05 percent, Business Bay saw the largest increase in the average rental price of luxury apartments.
With an average annual rent of AED214,000 ($58,270) in 2023, Downtown Dubai rose to the third rank among the most popular areas in Dubai for apartment rentals, suggesting a growing demand for upscale living.
Haider Khan, CEO of dubizzle, said: “Our 2023 Annual Property Market Reports for Dubai and Abu Dhabi not only highlight dubizzle’s leading position among real estate platforms but also shed light on the booming nature of the UAE’s leading property markets.
“It’s a well-documented fact that 2023 has been a defining year for UAE real estate. The data gathered from property seekers who generated over 77m page views for listings on dubizzle for Dubai and nearly 14m page views for Abu Dhabi in 2023, provides further evidence that the UAE’s property market is going from strength to strength.
“This high online engagement, coupled with the strong numbers shared by both DLD and DARI for transactions in 2023, reflects the prevailing positive sentiment in the market.
“We will have to wait and see how the market performs over the course of this year, however early indicators suggest that this positive sentiment will remain strong in 2024 as well.”
Another indicator of the real estate industry’s successful year of expansion and resiliency was Dubizzle’s Annual Property Sales market.
The city has drawn much interest from investors because of its business-friendly policies, booming off-plan property sales, and newly completed projects.
The report states that in 2023, there was a significant increase in the average sales price of both luxury and affordable apartments and villas.
The best option for reasonably priced apartments was found to be Jumeirah Village Circle, which was followed by International City and Dubai Silicon Oasis.
On the other hand, the most attention was drawn to the luxurious apartments in Downtown, Business Bay, and Dubai Marina.
The areas with the best Return on Investment (ROI) for both luxury and affordable apartments were also highlighted in the report.
Based on the estimated rental yield, Liwan and Green Community had the best ROIs—9.46% and 9.49%, respectively—on the list.
DAMAC Hills 2 is the best neighborhood in the city for reasonably priced villas, followed by Dubailand and Jumeirah Village Circle, according to user search trends on Dubizzle.
Meanwhile, buyers interested in luxury villas are searching more and more for Dubai Hills Estate, which has seen an overall increase of 14.37%.
The research also noted that high returns on investment (ROI) in some areas make them especially profitable for investment purposes, as more and more Dubai residents look to establish long-term residency in the emirate by purchasing homes rather than renting.
Prominent domains such as Liwan, Green Community, DIP, and Al Barari exhibit noteworthy returns, signifying robust investor attention and prospects for sustained prosperity.
Popular areas with high ROI include:
- Silicon Oasis: 8.59 per cent
- Sports City: 8.38 per cent
- International City: 7.98 per cent
And for villas:
- Jumeirah Village Circle: 7.98 per cent
- DAMAC Hills: 6.84 per cent
- Dubailand: 6.83 per cent