DUBAI-ABU DHABI SEE STRONG PROPERTY DEMAND & HIGH RENTAL YIELDS

DUBAI-ABU DHABI SEE STRONG PROPERTY DEMAND & HIGH RENTAL YIELDS

01 March 2024, Realty+

Dubai and Abu Dhabi Annual Property Market Report has revealed strong demand backed by high rental yields across both emirates. Primary data gathered by the leading property platform in the UAE from site visits and user behaviour throughout 2023 showcase positive trends across the board, driven by the UAE’s strong economic outlook and attractiveness as a place to live and work.

In 2023, Dubai’s real estate sector marked another prosperous year, with business-friendly policies attracting more tenants to the market.The upward trends in the rental segment is welcome news for investors with a keen interest in the city, known for its attractive investment options, abundant employment opportunities and unique futuristic lifestyle.

The report highlights 2023 as the ‘Year of Affordable Villas’, with Dubai residents renting standalone homes in greater numbers. Affordable villa rentals increased by 16.64%, with DAMAC Hills 2 emerging as the most popular affordable area for villa rentals, with an average yearly rent of AED96,000. Other areas like Mirdif, JVC, and Dubailand also maintained a steady popularity, offering villas with annual rents below AED 200,000. Al Barsha, meanwhile, remained popular with those wanting larger, private spaces, boasting an average annual rental price of AED 388,000, followed by Jumeirah and the newer Dubai Hills Estate.

Dubai also witnessed some of the most significant rent increases in recent years, with areas like Dubailand and Al Barsha seeing the biggest spikes (42.54% and 31.08% respectively). JVC saw a rise of 32% in the average year rent for apartments, and Damac Hills experienced a substantial increase of 66.67% in annual rental prices.

The trend for luxury apartments held sway in 2023, with Dubai Marina maintaining its status as the top luxury area for apartment rentals, with average annual rents surging to AED 148,000. Business Bay and Downtown Dubai also saw substantial increases in average yearly rent for apartments. Business Bay witnessed the highest increase in average rental prices for luxury apartments, with a rise of 21.05%. Downtown Dubai became the third most popular area for apartment rentals, with an average annual rent of AED 214,000 in 2023, indicating a growing demand for high-end living in Dubai.

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