It’s once again that time of the year for our data team at Bayut to get cracking on the numbers to bring you all the latest information about the best places to rent in Dubai, the top picks for real estate investments and all the other property related data for Dubai. The H1 Dubai Real Estate Market Report for 2018 looks in depth at the top areas for buying and renting properties in the emirate along with details on off-plan projects in Dubai attracting investor interest.
The prices for properties across Dubai have been compared against the search trends in the last six months of 2017, to present an accurate representation of the fluctuations in the Dubai property market.
Dubai Marina takes the top spot for renting apartments in the Dubai real estate market
The waterfront destination of Dubai Marina predictably took the top spot as the most searched for area by Bayut.com users for apartment rentals in Dubai. Prices across the board for renting flats in Dubai Marina reduced marginally by 3% on average, with studios going for AED 60k, 1-bedroom apartments for AED 87k and 2-bedroom units for AED 130k per year. Coming in second was budget-friendly Deira, which was one of the few places with prices increasing on average for 2-bedroom units by 8% to AED 92k. The price for studios in Deira averaged at a competitively priced AED 32k, and 1 BHK units are going for AED 55k, both showing a substantial decrease from H2 2017 by just over 15%.
Other popular areas for renting apartments in Dubai include Dubai Silicon Oasis, Bur Dubai, Jumeirah Lakes Towers (JLT), Jumeirah Village Circle (JVC), Business Bay, Downtown Dubai, International City and Dubai Sports City. Prices for renting in most of the popular locations in the Dubai real estate market decreased in the first six months of 2018, compared to the last six months of 2017, echoing the overall trend in the market.
The continued popularity of areas such as JVC, Dubai Silicon Oasis, International City and Dubai Sports City indicated that there is certainly a demand for low-cost residential communities in the Dubai property market.
Marina Diamonds emerges as the most popular building to rent in Dubai Marina
The luxury amenities and unmatched entertainment options for those living in Dubai Marina have only been reinforced with the popularity of upcoming projects such as the Bluewaters Island and Ain Dubai Ferris wheel.
The aptly named Marina Diamonds is the most searched for building to rent flats in Dubai Marina. Demand is high for the apartments in this cluster of seven residential towers. Prices for a studio in Marina Diamonds start at as low as AED 45k per year, which is significantly less than the average in the area. For 1-bedroom apartments in Marina Diamonds, prices start at AED 58k per year and 2-bedroom flats can be as affordable as AED 80k.
Other popular towers to rent apartments in Dubai Marina are Marina Pinnacle, Princess Towers, the Torch and Elite Residence.
Lots of Investment opportunity as prices on average reduce for buying apartments in Dubai
As is the case with apartment rentals in the Dubai property market, the Marina also emerged as the most popular location to buy apartments in Dubai. The prices to buy apartments in Dubai Marina have largely remained unchanged for studios which are commanding an average of AED 850k. There have been modest decreases for 1 and 2-bedroom units with average sales prices of AED 1.23M and AED 2.05M respectively.
Coming in second for the most popular areas to invest in Dubai property is the affordable community of International City. Investing in the area is ideal for those looking at low-cost properties with high rental yields. The prices on average have fallen here, with noticeable decreases of above 8% for both 1 and 2-bedroom units. Studios for sale in International City are priced at an average of AED 310k, 1-bedroom apartments at AED 420k and 2-bedroom flats at AED 775k.
The decrease in price for buying apartments in Dubai have not been very dramatic, so we could expect prices to remain stable in the coming months.
Popular clusters to buy in International City
The most popular cluster to buy apartments in International City is the England Cluster, with studios starting at AED 270k and 1-bedroom flats at AED 375k. This cluster does not feature any 2-bedroom apartments. The next popular buildings with apartments for sale in International City is the Morocco Cluster, which also features studios and 1-bedroom flats. Studios for sale in the Morocco Cluster start at as low as AED 260k and 1-bedroom units at AED 380k.
Coming up next are the larger family-friendly apartments in the Central Business District. The 2-bedroom apartments in the Central Business District start at a modest AED 700k. Other popular clusters to buy in International City include the France and Persia clusters.
Mirdif remains the firm favourite for renting villas in the Dubai real estate market
Beloved by locals and expats alike, Mirdif does not seem to be losing popularity any time soon for villa rentals in Dubai. The average cost for renting in Mirdif has not changed drastically in the past six months. The average price for renting 3-bedroom villas in Mirdif is AED 120k, 4-bedroom houses are at AED 130k and 5-bedroom properties are at AED 140k.
The next popular area to rent houses in Dubai is one of the emirate’s oldest villa communities, Jumeirah. Close to the eponymous beach and bustling with restaurants, opulent hotels and some of the country’s best schools, the appeal of the area is obvious. The average rents for 3-bedroom villas in Jumeirah remain stable at AED 180k, while 4 and 5-bedroom villas have dropped on average to AED 215k and AED 270k respectively.
Other popular areas to rent villas in Dubai include The Springs, Arabian Ranches, Al Barsha, Umm Suqeim, Palm Jumeirah, Dubailand, Jumeirah Park and Jumeirah Village Circle. Prices on average have dropped across all these areas, however, the falls are not very dramatic, with the highest decrease reported in Arabian Ranches where 4 and 5-bedroom houses have dropped by just over 10%.
Uptown Mirdif is the most popular community to rent villas in Mirdif
The villas in Uptown Mirdif are the most popular for renting in the area. The lowest price for renting both 3 and 4-bedroom houses here is AED 105k, and 5-bedroom properties start as low as AED 120k. Other popular communities in Mirdif for villas are Shorooq, Mirdif Hills, Ghoroob Mirdif and Al Badi complex.
Arabian Ranches claims the top spot for buying villas in Dubai
Those looking to buy villas in Dubai will be happy to know that the prices on average have fallen for houses on sale in Arabian Ranches. The premium villa community by Emaar has always ruled the roost when it comes to real estate investments in Dubai, thanks to its proximity to schools, high standards of construction and abundance of amenities. The average price for buying 3-bedroom villas in Ranches is AED 3M, 4-bedroom houses go for AED 4M and 5-bedroom units will set you back by a cool AED 5.2M.
Another popular area to buy villas in Dubai is the upscale waterfront community of Palm Jumeirah, where prices dipped in line with the trends across the market with 4-bedroom houses selling for an average of AED 10.5M and 5-bedroom villas for AED 14.5M. The other popular areas for investing in villas in Dubai look similar to what we witnessed in H2 2017, with The Springs, Dubailand. The Villa, JVC, The Meadows, Jumeirah Park, Reem Community and JVT making it to the top. The only noticeable decrease in prices are for 3 and 4-bedroom villas in Dubailand, with steep declines of nearly 17% and 13% respectively.
Al Reem takes the lion’s share for villa sales in Arabian Ranches
The Al Reem sub-community in Arabian Ranches attracted the most amount of investor interest. The lowest price for a 3-bedroom villa for sale in Al Reem is AED 1.65M, which is considerably lesser than the average across the community. The price for 4-bedroom villas here starts at AED 2.3M and 5-bedroom villas are listed for a minimum of AED 2.9M.
Other popular communities to buy villas in Arabian Ranches include Saheel, Palmera, Mirador and Alvorada.
Off-plan projects of note in the Dubai Real Estate Market
The time is certainly ripe for those looking at property investments in Dubai with many off-plan developments offering a more cost-effective option for those on a budget. With tighter regulations coming into place, the risks previously associated with investing in off-plan projects in Dubai don’t pose an issue any longer.
One of the most talked about off-plan projects in Dubai has been the ambitious Dubai Hills Estate by master-developer Emaar. With the Dubai Hills mall approaching completion, the project is well on its way to becoming one of the sought after communities to invest in the property market in Dubai.
MBR City, Akoya Oxygen, Dubai South City and Dubailand continue to attract interest from Dubai real estate investors.
Overall, Dubai is certainly a buyer’s market at the moment. That said, since the fluctuations have rarely crossed the 10% mark, things may stabilise over the course of the year. Those looking at buying properties in Dubai would do well to look at both the ready properties and off-plan projects in the Dubai real estate market since prices are still competitive.
Haider Ali Khan, CEO of Bayut, said: “The average property price decreases in Dubai from H2 2017 are in line with what we foresaw last year. We are seeing that renters and buyers are still firmly in the driving seat, with renters likely to bargain with landlords to negotiate a lower rent or upgrade by moving to a larger property or a new area. The decreases in sales prices open up opportunities for buyers too.
“Whether you are renting or buying, it is definitely a good time to make a move in the Dubai property market.”
Khan added: “The summer months tend to be busy with people looking to rent a different place and lines up well with a break in the school year. I believe we may see more first-time buyers coming into the market, people who traditionally would have just rented a different place might consider buying given the lower prices. As we move into the later half of the year, we expect the prices to hover around where they are right now and for the serious parties, there will be great opportunities to invest at good price points”
Disclaimer: The above report is based on prices advertised by real estate agencies on behalf of their clients on Bayut.com, and not representative of actual real estate transactions conducted in Dubai.