Bayut, the UAE’s leading real estate portal, has released its annual report, revealing that 2024 has marked yet another record-breaking year for Dubai’s real estate market. According to Bayut’s findings, property prices across popular areas have been on a steady rise, driven by growing demand, the addition of new inventory, and Dubai’s increasing attractiveness to high-net-worth individuals seeking both lifestyle and investment opportunities in the city.
Key Trends in Property Buying in Dubai
Bayut’s data indicates a notable surge in property prices across both apartments and villas in key Dubai neighbourhoods. Arabian Ranches led the charge, seeing villa prices spike by as much as 56%.
Affordably priced areas have become beautiful to buyers, with increased activity noted in places such as Dubai Silicon Oasis, Dubai Sports City, DAMAC Hills 2, and Dubailand. Popular neighbourhoods like Jumeirah Village Circle (JVC), Business Bay, Al Furjan, and The Springs have emerged as top choices for those searching for mid-range properties. Luxury buyers, meanwhile, have shown continued interest in prime locations such as Dubai Marina, Downtown Dubai, Dubai Hills Estate, and DAMAC Hills.
The demand for affordable properties has translated into significant price hikes: affordable apartments in high-demand areas saw increases of up to 26%, while villas saw rises of over 100%, with Dubailand experiencing the largest jump. In mid-tier communities, apartment and villa prices have surged by up to 40%, particularly in Jumeirah Lake Towers, where the market is reacting to the higher demand for centrally located homes.
The luxury segment has also seen steady growth, with prices rising between 7% and 31%, especially in Dubai Hills Estate. Palm Jumeirah, however, experienced a slight dip, with apartment prices dropping by 8.4%, according to the Dubai Land Department (DLD) data.
By 10th December 2024, more than 169,000 property transactions had been recorded, amounting to AED 488 billion. Ready properties accounted for over 67,000 transactions worth AED 274 billion, while off-plan properties saw over 102,000 transactions, totalling AED 213 billion.
Investment Opportunities and ROI Trends in Dubai’s Real Estate Market
The report highlights the impressive rental yields in Dubai, with affordable apartments in areas like Dubai Investments Park (DIP), Discovery Gardens, and Liwan providing yields as high as 9% to 11%. Mid-tier locations such as Living Legends, Motor City, and Al Furjan have also delivered strong returns, with yields exceeding 8.7%. Meanwhile, luxury apartments in sought-after areas like Al Sufouh, Green Community, and Al Barari reported yields between 7% and 9%.
In terms of villas, affordable communities such as Dubai Industrial City, International City, and DAMAC Hills 2 offered yields above 6%, while mid-tier villa communities like JVC, Al Furjan, and Jumeirah Village Triangle delivered returns between 6% and 8%. Luxury villas in prestigious areas, including The Sustainable City, Al Barari, and Tilal Al Ghaf, recorded yields above 6%.
Rent Prices and Trends in Dubai's Rental Market
The rental market in Dubai has also seen considerable increases across all segments, fueled by rising demand. Affordable apartment rents, for instance, surged by as much as 48%, with 2-bedroom flats in Deira seeing the largest increase. Mid-tier apartment rents climbed by up to 41%, with JLT becoming a key hotspot for centrally located properties. Luxury apartment rents grew by 5% to 25%, reflecting the ongoing demand for high-end living spaces.
Villa rentals saw similar upward trends, with affordable villa rents increasing by up to 44%, while mid-tier villas, especially 4-bedroom units in Town Square, saw hikes of up to 45%. The luxury villa segment, too, saw impressive growth, with rents in upscale areas like Jumeirah rising by up to 60%, particularly for larger 6-bedroom units.
For affordable rental options, areas like Deira and Bur Dubai remain popular for apartments, while DAMAC Hills 2 and Mirdif are gaining traction for villas. Jumeirah Village Circle (JVC) and Business Bay dominate the mid-tier apartment rental market, while JVC and Town Square lead the villa rental scene. For luxury rentals, Dubai Marina and Downtown Dubai continue to be prime destinations for high-end apartments, while Dubai Hills Estate and Al Barsha remain top choices for luxury villas.
Dubai’s Real Estate Future: Growth, Investment, and Global Appeal
The driving forces behind Dubai’s real estate growth are multifaceted, with government policies, economic prosperity, and Dubai's growing international allure all contributing to the city’s appeal. Additionally, Dubai’s emphasis on sustainable development and technological innovation has made it an even more attractive proposition for buyers, investors, and renters alike.
Commenting on the report, Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA, stated:
"Dubai’s real estate market continues to impress with its resilience and upward momentum. We are seeing record-breaking interest from international buyers, particularly in luxury areas such as Palm Jumeirah and Dubai Hills Estate, with high-net-worth individuals from Europe and Asia eager to secure prime properties. At the same time, emerging locations like Dubai South and Dubai Creek Harbour are seeing robust demand, driven by improved infrastructure and strategic positioning."
"With Dubai set to be home to over 4 million expats by 2025, demand for housing is poised to remain high. The market offers significant investment potential, not only in luxury and off-plan properties but also in affordable housing and sustainable developments. At Bayut, we’re proud to be leading the charge with our innovative tools, such as TruBroker™, which connects buyers with trusted professionals, and TruEstimate™, which provides accurate property valuations, empowering our users to make informed decisions in this dynamic market."
Source: Constructionweekonline
