18 January 2022, Arabian Business
Bayut and Dubizzle says Dubai’s real estate sector has recorded ‘phenomenal’ growth last year.
Property prices in the most popular areas of Dubai rose by up to 35 percent during 2021, according to new research from Bayut and Dubizzle.
The report said Dubai’s real estate sector has recorded “phenomenal” growth last year, with an “impressive boom” in rental and sales prices across prominent neighbourhoods.
Based on the search trends observed on the two property advertising platforms, 2021 proved to be an exceptional year for real estate, with their combined inventory increasing by almost 75 percent and prices reaching “unprecedented highs”.
Bayut and Dubizzle’s combined data revealed that properties for sale in Dubai’s popular areas have recorded price increases of up to 35 percent in 2021.
In the affordable segment, the most searched for areas by prospective buyers were Damac Hills 2 and Jumeirah Village Circle for villas and apartments respectively.
High-net-worth investors, on the other hand, preferred integrated communities like Dubai Marina and Downtown Dubai for apartments and Arabian Ranches and Dubai Hills Estate for villas during 2021.
The most popular areas of JVC, Al Nahda, Bur Dubai, Dubai Silicon Oasis and Deira experienced declines between 1-12 percent in average rents of affordable apartments, according to Bayut and Dubizzle data, with the exception of smaller units in Al Nahda.
On the other hand, luxury flats in sought after areas have seen substantial increases in rental costs by up to 26 percent.
Budget villas in Dubai’s popular areas have conversely become more expensive by up to 21 percent in 2021, while the rental rates for luxury houses in highly searched-for areas have observed massive growth of up to 41 percent.
According to the report, tenants in search of affordable properties have mainly focused on apartments in Jumeirah Village Circle (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 remained the top choices for expensive villas.
The report added: “As prices in most popular areas of Dubai appreciate, it is important to acknowledge the emirate’s flexible legislations, strategic economic initiatives and effective response to and management of the pandemic that have made it a safe haven for investors.”
According to the Dubai Land Department, 52,415 investors entered the real estate market in 2021 and contributed to the 72,207 new investments in the sector. Additionally, 35 real estate projects valued over AED11 billion were also completed in 2021, with 319 projects in progress.
Haider Ali Khan, CEO of Bayut and Dubizzle and the head of EMPG MENA said: “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.
“There have been some record-breaking sales and rental transactions in the emirate last year and our own inventory has increased substantially to meet the rising demand. If we look at data from DLD, the city’s real estate sector also 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.
“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.”