Real estate indicators in the Emirates showed positive trends, driven by the country’s promising economic prospects and its distinguished position as a destination for living and working.
Real estate platform reports revealed “Dubizzle Annual report on the real estate market in Dubai and Abu Dhabi highlighted the high demand for real estate and the growth of rental returns in the two emirates, which confirms the strong potential for investors.
Preliminary data collected by the real estate platform from website visits and user behavior during the year 2023 showed positive trends in various real estate categories, driven by promising economic expectations for the country and its distinctive position as a destination for living and working.
Haider Ali Khan, CEO of Dubizzle and President of the Dubizzle Group in the Middle East and North Africa, stressed that “the high levels of Internet demand are accompanied by the strong numbers shared by the Dubai Land Department and the Dari System in Abu Dhabi regarding transactions during the year 2023.” Reflects the prevailing positive outlook in the market. “Early indicators suggest that the positive outlook will continue at the same level in 2024.”
Dubai’s real estate market will witness further growth and prosperity in 2023, as business-friendly policies attract more tenants to the market. The growing performance of the rental sector represents good news for investors interested in the emirate, which is famous for its attractive investment options, abundant employment opportunities, and a distinctive and ahead of its time lifestyle.
The report refers to 2023 as “the year of affordable villas,” as the number of Dubai residents renting independent homes has increased. The rental rate for villas at affordable prices increased by 16.64%, and Damac Hills 2 was at the forefront, with the average annual rental amount reaching AED 96,000.
Other areas such as Mirdif, Jumeirah Village Circle and Dubailand have maintained their popularity, as villas are available with an average annual rent of less than AED 200,000. The Al Barsha area maintains its position among those looking for larger spaces and units with greater privacy, as the average annual rent reached 388 thousand dirhams, followed by Jumeirah and the relatively new Dubai Hills Estate complex.
Dubai has witnessed a noticeable increase in rental prices in recent years, led by Dubailand and Al Barsha (by 42.54% and 31.08%, respectively). Average rental prices for apartments in Jumeirah Village Circle have increased by 32% annually, while Damac Hills has achieved a massive 67% increase in annual rental prices.
Dubai Marina maintained its leading position in terms of renting apartments, with an average annual rental fee that rose to record 148 thousand UAE dirhams. Business Bay and Downtown Dubai, in turn, witnessed notable increases in the annual rent for apartments, as Business Bay recorded the highest increase in average rental prices for luxury apartments, at 21.05%, while Downtown Dubai ranked third on the list of areas most in demand for renting apartments. With an average annual rental allowance of 214 thousand UAE dirhams in 2023, which indicates the growing demand for luxury housing in Dubai.
A year of growth for the real estate market
Dubizzle’s annual report on real estate sales indicated that 2023 was a year of growth for the real estate market. Dubai has attracted the attention of investors, with new projects ready, high demand for projects under construction, and business-friendly policies.
The report stated that the average selling prices of apartments and villas, whether luxury or affordable, recorded a significant increase in 2023. Jumeirah Village Circle topped the list in the affordable apartments category, followed by Dubai Silicon Oasis and then International City. In the luxury apartments category, Dubai Marina, Business Bay and Downtown Dubai ranked first.
The report also highlighted the areas that provide the highest returns on investment in low-cost and luxury apartments. The Liwan area and Green Community came in the lead, with high returns on investment amounting to 9.46% and 9.49%, respectively, based on the expected rental return.
According to the search traffic on Dubizzle, the Damac Hills 2 complex was at the forefront of the areas witnessing demand for affordable villas in Dubai, followed by Dubailand and Jumeirah Village Circle, while the Dubai Hills Estate complex ranked first among the areas searched for by customers who wanted In purchasing a luxury villa, a total increase of 14.37%.
Promising opportunities in Abu Dhabi
Dubizzle’s annual reports on the real estate sales and rental market in Abu Dhabi for the year 2023 revealed that the emirate is full of promising opportunities for tenants and investors alike.
Luxury residential real estate in Abu Dhabi occupies an important position in the market, as Al Reem Island witnessed a 5.33% increase in average rental prices for luxury apartments, which reflects the growing demand for luxury housing. Other areas, such as Al Raha Beach and the Corniche, witnessed significant increases in renting luxury apartments, which enhances the city’s distinctive position among residents who seek a luxurious lifestyle. Yas Island and Saadiyat Island are also witnessing an increasing demand for renting luxury apartments.
