Bayut & dubizzle’s Annual Sales Market Report for Dubai 2021
- At a Glance
- Affordable Apartment Sales
- Luxury Apartment Sales
- Affordable Villa Sales
- Luxury Villa Sales
- Top Off-Plan Projects
As we wrap up a fantastic year for real estate, Bayut & dubizzle’s Dubai sales market report looks at the property price trends and other developments observed in 2021.
Almost immediately after the year began, Dubai’s real estate sector picked pace as the emirate geared up to host the much-awaited Expo 2020. The widespread vaccination campaign to ensure better health and protection against the ongoing pandemic also contributed to making Dubai one of the safest places to be in 2021.
According to figures released by the Dubai Land Department (DLD), 52,415 investors entered the real estate market in 2021 to make 72,207 new investments in the sector. This is a 100% increase from the investment value recorded in 2020. A total of 35 real estate projects with a value exceeding AED 11B were also completed in 2021 and 319 projects are in progress, to meet the rising demand for real estate in Dubai.
In the words of H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai:
“Dubai’s robust infrastructure, flexible legislations that have kept pace with evolving market conditions, and its safe environment have all contributed to deepening investment confidence in its real estate sector.
The rise in investments and the increasing interest shown by global investors in Dubai is testament to the effectiveness of the emirate’s strategic economic initiatives that have sought to strengthen its leadership in various sectors and enhance its global rankings in development indicators.”
The report analyses how these factors have impacted the popular areas for property sales in Dubai and the evolution of average price trends in these areas. For buyers, 2021 asking prices held steady for JVC apartments (-0.02% per sq ft) and DAMAC Hills 2 villas (+3.45%), while Palm Jumeirah villas (+34.34%) and JBR apartments (+26.98%) rose most.
For this report, we have grouped the areas into ‘Luxury’ and ‘Affordable’ segments to provide a more tailored view of the Dubai sales trends for 2021.
Data sourcing & analysis: All prices in this report are quoted in AED. Asking prices by area and bed type, prices per sq. ft, and gross rental yields are based on average listing sale and rent prices in Dubai on Bayut.com and dubizzle.com. Areas and off-plan projects mentioned in the article are stated based on their popularity as per the user search activity on the platform. Transaction prices reflect average sales recorded by the Dubai Land Department (DLD). The analysis compares the last 12 months with the previous 12-month period, as of December 2021.
At a Glance
Investors and home buyers interested in apartments have mainly searched for properties in popular integrated communities like Jumeirah Village Circle and Dubai Marina in 2021.
Newer developments such as DAMAC Hills 2, Dubai Hills Estate and the ever-popular Dubailand district have also managed to capture investor interest during 2021, particularly for villa sales.
Besides these areas, historically-popular districts such as Arabian Ranches for villas, Business Bay and Downtown Dubai for apartments have continued to attract buyers throughout the year.
According to DLD, 36,480 ready properties worth AED 105.56 billion and 24,761 off-plan properties worth AED 45.5 billion were sold in Dubai in 2021.
Popular Areas to Buy Affordable Apartments
POPULAR AREAS |
Rental Yield |
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
STUDIO |
1-BED |
2-BED |
|---|---|---|---|---|---|
| Jumeirah Village Circle (JVC) |
Rental Yield
6.29%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
STUDIO
|
1-BED
|
2-BED
|
| Business Bay |
Rental Yield
5.46%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
STUDIO
|
1-BED
|
2-BED
|
| Jumeirah Lake Towers (JLT) |
Rental Yield
6.70%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
STUDIO
|
1-BED
|
2-BED
|
| Dubai Silicon Oasis |
Rental Yield
7.04%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
STUDIO
|
1-BED
|
2-BED
|
| Dubai Sports City |
Rental Yield
7.18%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
STUDIO
|
1-BED
|
2-BED
|
Topping the list of most searched for areas by investors looking for reasonably-priced apartments for sale in Dubai has been the perennial favourite, Jumeirah Village Circle (JVC). The area has maintained its charm for buyers with its family-friendly amenities, excellent connectivity and attractive property prices. As per our analysis of Dubai property prices, the average sales price-per-square-foot for apartments in JVC has remained fairly stable at AED 834.
The apartments for sale in JVC have seen moderate fluctuations in asking prices during 2021. While the studio flats in JVC have become more affordable, going from AED 417k to AED 415k, the sales price for 1-bed apartments in JVC has increased from AED 650k to AED 665k. The asking price for 2-bed flats for sale in JVC has also gone up from AED 974k in 2020 to AED 992k in 2021.
Business Bay has been the next most searched for area among investors looking for affordable apartments in Dubai. This centrally located district appeals to a variety of buyers thanks to the accessibility, connectivity and amenities it offers. The average price-per-square-foot for apartments for sale in Business Bay has seen an uptick of 10.8%, averaging at AED 1,311 in 2021. To buy flats in Business Bay, prospective investors can expect to pay an average of AED 703k for studios, AED 1.07M for 1-bed apartments and AED 1.73M for 2-bed flats.
Other prominent areas when it comes to the sale of affordable apartments in Dubai include Jumeirah Lake Towers, Dubai Silicon Oasis and Dubai Sports City. All these areas have seen an increase of 1% to 9% in the average-price-per-square-foot.
Those interested in buying apartments in JVC have shown the most inclination towards the District 12 community. The apartments for sale in District 12 come in studio, 1, 2 and 3-bed variations. The minimum financial outlay to purchase District 12 JVC flats was AED 385k.
District 15, Seasons Community, District 10 and Diamond Views have also appealed to buyers interested in apartments in JVC.
Dubai Sports City has offered the highest rental returns for affordable apartments. The expected average yield of apartments in Dubai Sports City is 7.18%.
Besides Sports City, investors looking for healthy returns on buy-to-let apartments in the affordable category can also consider Dubai Silicon Oasis and Jumeirah Lake Towers, which offer average rental yield of 7.04% and 6.7% respectively.
Popular Areas to Buy Luxury Apartments
POPULAR AREAS |
Rental Yield |
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
1-BED |
2-BED |
3-BED |
|---|---|---|---|---|---|
| Dubai Marina |
Rental Yield
5.64%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
1-BED
|
2-BED
|
3-BED
|
| Downtown Dubai |
Rental Yield
4.87%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
1-BED
|
2-BED
|
3-BED
|
| Palm Jumeirah |
Rental Yield
4.70%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
1-BED
|
2-BED
|
3-BED
|
| Jumeirah Beach Residence (JBR) |
Rental Yield
4.46%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
1-BED
|
2-BED
|
3-BED
|
| Dubai Hills Estate |
Rental Yield
5.31%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
1-BED
|
2-BED
|
3-BED
|
Dubai Marina has continued its reign as the most popular area for luxury apartment sales in the emirate. The area is known for its upscale Riviera lifestyle and central location that offers proximity to major commercial and leisure hubs in the city.
In 2021, the average price-per-square-foot to buy apartments in Dubai Marina has increased by 10.8%, going from AED 1,171 in 2020 to AED 1,298 in 2021. The asking prices for Dubai Marina apartments have also increased across the board, with 1-bed apartments averaging at AED 1.09M and 2-bed flats for sale in Dubai Marina priced at AED 1.75M. The prices for 3-bedroom apartments for sale in Dubai Marina have increased from AED 2.54M in 2020 to AED 2.86M in 2021.
Our analysis of the Dubai real estate market has also revealed that Downtown Dubai is the second most popular choice for investors and buyers interested in luxury apartments in the ready market. The average sales price-per-square-foot for apartments in Downtown Dubai has increased by 13.8% to average at AED 1,964. This trend has also been evident in individual apartment types, with 1-bed units averaging at AED 1.52M, 2-beds at AED 2.81M and 3-bed flats at AED 4.83M.
Other areas that have attracted investor interest for expensive apartments for sale in Dubai include Palm Jumeirah, Jumeirah Beach Residence and Dubai Hills Estate. These upscale communities have also seen increases in average price-per-square-foot between 9% and 27%. In the affordable villas section change ‘between 11% to 25%’ to ‘between 11% and 25%.
Marina Gate has been the most popular building among investors looking to buy luxury flats in Dubai Marina. The apartments here are available in studio, 1, 2, 3, 4 and 5-bed layouts.
Investors have also shown inclination towards Marina Diamonds, Manchester Tower, Marina Pinnacle and Studio One Tower for buying upscale flats in Dubai Marina.
Dubai Marina have yielded the highest returns for buy-to-let luxury apartments. Apartments for sale in Dubai Marina had an average gross rental yield of 5.64% in 2021, before service charges and other costs.can generate an average return of 5.64% based on projected rental yields. However, it is important to note that this is an average rental yield for the area and it can differ based on the location, developer and amenities offered with the unit.
Other areas with luxury apartments that yield good rental returns include Dubai Hills Estate (5.31%) and Downtown Dubai (4.87%).
Popular Areas to Buy Affordable Villas
POPULAR AREAS |
Rental Yield |
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
3-BED |
4-BED |
5-BED |
|---|---|---|---|---|---|
| DAMAC Hills 2 |
Rental Yield
5.36%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
3-BED
|
4-BED
|
5-BED
|
| Dubailand |
Rental Yield
5.85%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
3-BED
|
4-BED
|
5-BED
|
| Jumeirah Village Circle (JVC) |
Rental Yield
5.90%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
3-BED
|
4-BED
|
5-BED
|
| The Springs |
Rental Yield
5.00%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
3-BED
|
4-BED
|
5-BED
|
| DAMAC Hills |
Rental Yield
5.50%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
3-BED
|
4-BED
|
5-BED
|
DAMAC Hills 2 has been a highly searched for area among prospective home buyers interested in affordable villas in Dubai. The suburb offers a quiet, family-friendly lifestyle, away from the bustling city.
The average sales price-per-square-foot for villas in DAMAC Hills 2 has seen a moderate increase of 3.45% in 2021, going from AED 566 to AED 586. The same increase has been reflected in the asking prices for individual villas for sale in DAMAC Hills 2, with 3-bedroom villas averaging at AED 1.02M. Prices for 4-bedroom and 5-bedroom homes have averaged at AED 1.56M and AED 1.82M respectively.
Also popular among investors is the developing district of Dubailand, which offers an array of budget-friendly villas in varying layouts. The average sales price-per-square-foot for houses in Dubailand has increased from AED 660 in 2020 to AED 737 in 2021, recording an uptick of 11.8%. Buyers interested in buying villas in Dubailand can expect to pay AED 1.51M for 3-bed, AED 1.94M for 4-bed and AED 3.17M for 5-bed units.
The well-established community of The Springs has also featured on the list of areas popular among investors for affordable villas, alongside Jumeirah Village Circle and DAMAC Hills. The average price-per-square-foot in these areas has recorded increases between 11% to 25%
Those looking for budget villas in DAMAC Hills 2 have primarily focussed their search on properties in Albizia. This quiet and peaceful sub-community is popular for its greenery and well-planned road network.
Other popular sub-communities for buying houses in DAMAC Hills 2 include Pacifica, Amargo, Mimosa and Basswood.
The villas in Jumeirah Village Circle (JVC) offer the highest rental yields in Dubai for property investors and buyers on a tighter budget. In 2021, the projected rental yield for villas in JVC has averaged at 5.9%.
Dubailand and DAMAC Hills are also good options for those looking for healthy returns on affordable buy-to-let villas in Dubai with projected rental yields of 5.85% and 5.5%, respectively.
Popular Areas to Buy Luxury Villas
POPULAR AREAS |
Rental Yield |
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
4-BED |
5-BED |
6-BED |
|---|---|---|---|---|---|
| Arabian Ranches |
Rental Yield
4.97%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
4-BED
|
5-BED
|
6-BED
|
| Dubai Hills Estate |
Rental Yield
4.79%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
4-BED
|
5-BED
|
6-BED
|
| Palm Jumeirah |
Rental Yield
5.16%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
4-BED
|
5-BED
|
6-BED
|
| The Villa |
Rental Yield
4.92%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
4-BED
|
5-BED
|
6-BED
|
| Arabian Ranches 2 |
Rental Yield
5.28%
|
PRICE PER SQ.FT
Avg. Price/sq.ftChange from 2020
|
4-BED
|
5-BED
|
6-BED
|
The luxury villa segment has witnessed a phenomenal boom over the course of 2021. Investors looking at houses in Dubai’s luxury property market have continued to mainly search for ready villas in Arabian Ranches. This golf course district with a variety of villa properties has been a reigning favourite with investors and buyers and it has experienced a surge in popularity thanks to the tranquil lifestyle and safe, communal vibes of the development.
The average sales price-per-square-foot for villas in Arabian Ranches has increased from AED 916 in 2020 to AED 1,133 in 2021, recording an impressive uptick of 23.7%. Following the price shift, the 4-bed villas in Arabian Ranches have seen average prices increase from AED 3.45M to AED 4.34M, while 5-bed houses for sale have gone up from AED 4.6M to AED 5.63M. The 6-bedroom homes for sale in Arabian Ranches now average at AED 8.63M, as compared to AED 6.87M in 2020.
Dubai Hills Estate has also grown in terms of popularity for luxury villa sales in Dubai. This relatively new address has seen a 21.3% uptick in the average price-per-square-foot for the sale of houses. The asking prices for villas for sale in Dubai Hills Estate have averaged at AED 3.74M for 4-bedroom homes, AED 4.88M for 5-bed villas and AED 16.6M for 6-bed houses.
The exclusive Palm Jumeirah district, along with The Villa and Arabian Ranches 2 have also managed to attract significant buyer interest during 2021 for expensive villas in Dubai. The average price-per-square-foot for these areas has increased by up to 35%, with the highest uptick being recorded in Palm Jumeirah.
Within Arabian Ranches, potential home buyers and investors have been most keen on Al Reem to buy villas in Dubai. The houses for sale in Al Reem are available in semi-detached layouts with private backyards.
Buyers looking to buy villas in Arabian Ranches have also searched for properties in Saheel, Palmera, Mirador and Polo Homes.
Based on the sales trends in Dubai observed during 2021, Arabian Ranches 2 recorded the highest average rental yield among the luxury villa areas in 2021. Properties in Arabian Ranches 2 have boasted an average projected rental yield of 5.28%.
Other popular options known for their high returns are the properties in Palm Jumeirah and Arabian Ranches, with respective rental yields of 5.16% and 4.97% when it comes to luxury villa sales.
Featured Off-Plan Apartment Projects
PROJECT | LOCATION | CATEGORY |
|---|---|---|
PROJECT Binghatti Mirage | LOCATION Jumeirah Village Circle (JVC) | CATEGORY Affordable |
PROJECT Rukan | LOCATION Dubailand | CATEGORY Affordable |
PROJECT Dubai Healthcare City Phase 2 | LOCATION Al Jaddaf | CATEGORY Affordable |
PROJECT Sobha Hartland | LOCATION Mohammed Bin Rashid City | CATEGORY Luxury |
PROJECT Opera District | LOCATION Downtown Dubai | CATEGORY Luxury |
PROJECT 15 Northside | LOCATION Business Bay | CATEGORY Luxury |
Prospective investors have shown interest in the reasonably-priced apartments in suburbs like Dubailand and Jumeirah Village Circle (JVC). Binghatti Mirage in JVC has attracted the most investor interest for affordable off-plan apartments in Dubai. Rukan has continued to be the most searched for area with affordable off-plan flats in Dubailand, starting from AED 245k.
Those interested in luxury off-plan apartments have also searched for upscale flats in Sobha Hartland MBR City. The project offers apartments in studio, 1, 2 and 3-bed layouts at a starting price of AED 730k. Another popular upcoming development that has captured buyer interest is the Opera District in Downtown Dubai. The luxury off-plan apartments in Opera District have starting sales prices of AED 1.2M.
Featured Off-Plan Villa Projects
PROJECT | LOCATION | CATEGORY |
|---|---|---|
PROJECT Rukan | LOCATION Dubailand | CATEGORY Affordable |
PROJECT Victoria | LOCATION DAMAC Hills 2 | CATEGORY Affordable |
PROJECT District One | LOCATION Mohammed Bin Rashid City | CATEGORY Luxury |
PROJECT Trump Estates | LOCATION DAMAC Hills | CATEGORY Luxury |
PROJECT Elan | LOCATION Tilal Al Ghaf | CATEGORY Luxury |
Property buyers looking to invest in reasonably priced off-plan villas have shown keen interest in Rukan in Dubailand. The villas for sale in Rukan are available in 1, 2, 3 and 4-bed configurations and have starting prices of AED 502k. Victoria in DAMAC Hills 2 has been another off-plan villa project that has held investor interest for budget off-plan villas in Dubai.
In the luxury segment, District One in Mohammed Bin Rashid City has been the most popular choice for investors interested in palatial villas. The off-plan villas for sale in District One are available in 4, 5 and 6-bedroom layouts with prices starting from AED 4.7M. The ultra-luxurious golf community of Trump Estates in DAMAC Hills and Elan in Tilal Al Ghaf have also generated considerable buyer interest for off-plan villas in Dubai.
Commenting on the trends, Haider Ali Khan, the CEO of Bayut & 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.”
This brings us to the end of our Dubai sales market report for 2021.
Disclaimer: This report is based on property listing prices advertised on Bayut.com and dubizzle.com by real estate agencies on behalf of their clients. Figures represent advertised prices only and do not reflect actual transaction prices unless stated. Reported price metrics are calculated as averages after removing outliers to reduce the influence of extreme values and provide a more robust summary of advertised market prices.
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