19 January 2022 – Gulf News – www.gulfnews.com
Meanwhile, luxury flats in sought-after areas have seen rent hikes by up to 26%.
Dubai: Jumeirah Village Circle and Damac Hills 2 in Dubailand are the most searched for locations for Dubai residents seeking affordable rental options.
Apart from these, the established non-freehold districts of Al Nahda, Bur Dubai and Deira remain popular, with apartments there recording declines of up to 12 per cent on the average, says the latest Bayut-dubizzle report. Dubai Silicon Oasis, too, has been popular as a mid-income residential spot. (The only exception to the rental decline are the smaller apartments in Al Nahda.)
Tenants in search of affordable properties have mainly focussed on the apartments in JVC and Al Nahda and the villas in Mirdif and Damac Hills 2. High-income tenants mostly searched for units in long-time favourites Dubai Marina and Downtown Dubai for upscale flats, while Jumeirah and Al Barsha have remained the top choices for expensive villas.
“It has been an interesting year for the economy of the country, and the contribution of the real estate sector towards this growth is stronger than ever,” said Haider Ali Khan, CEO of Bayut & Dubizzle and the Head of EMPG MENA.
Luxury flats in sought-after areas have seen substantial increases in rental costs by up to 26 per cent. The budget villas in Dubai’s popular areas have conversely become more expensive by up to 21 per cent in 2021, while the rental rates for luxury houses in highly searched-for areas have observed massive growth of up to 41 per cent.
Prices of on-sale properties in Dubai’s popular areas surged by 35 per cent in 2021, according to Bayut and Dubizzle’s ‘Dubai Property Market’ report.
As per the Dubai Land Department, 19,996 residential transactions worth Dh32.9 billion have taken place during 2021. This could be attributed to new investors entering the market for attractive property options, following the Expo-led boost to the economy and the burgeoning demand for bigger homes by the residents.
“If we look at data from DLD, the city’s real estate sector attracted over 38,000 foreign investors from outside the GCC region in the last year alone, which is indicative of the growing demand for investment in Dubai from international investors,” said Khan. “Thanks to the many initiatives launched by the government to safeguard the public and create a viable environment for investment, we can expect the demand to stay steady for Dubai real estate in the coming months too.”
Dubai Marina in demand
In the luxury segment, apartments for sale in Dubai Marina have remained popular with prospective investors and homebuyers. The area has seen the average sales price-per-square-foot for luxury apartments appreciate by 11 per cent to average at Dh1,298 per square foot in 2021.
The report also found that homebuyers are searching for properties in popular upscale neighbourhoods like Downtown Dubai, Palm Jumeirah and Jumeirah Beach Residence, where the average price per square foot for apartments rose by a margin of 13 per cent to 27 per cent. The suburban Dubai Hills Estate has also recorded a price increase of over 9 per cent for luxury apartments in Dubai.