Bayut report reveals Dubai property market thrives in Q3 2024

Dubai, UAE –

Bayut, the UAE's leading property portal, has released data highlighting the most-searched areas in Dubai's real estate market for the third quarter of 2024. Property prices in the city's most popular neighborhoods continue to rise, driven by strong sales figures, robust demand, and the availability of new inventory, fueling growth well into the next year.

Trends in Property Buying in Dubai

According to Bayut’s data, there have been significant price increases in key Dubai neighborhoods for both apartments and villas. Notably, villa prices in Arabian Ranches surged by up to 13% in Q3 2024. Affordable property buyers and investors have shown increased interest in areas like International City, Dubai South, DAMAC Hills 2, and Dubailand. Mid-range buyers are actively searching for units in neighborhoods such as Jumeirah Village Circle, Jumeirah Lake Towers, Al Furjan, and Reem. In contrast, luxury property investors have gravitated towards Dubai Marina, Business Bay, DAMAC Hills, and Dubai Hills Estate.

While transactional prices for affordable apartments in highly sought-after areas have generally declined by up to 11%, villa prices in Dubailand saw a sharp increase of nearly 20%, driven by heightened demand for affordable homes. In the mid-tier segment, both apartment and villa prices have risen by up to 8%. Luxury properties have also experienced consistent price increases, with transactional prices rising between 3% and 31%, particularly in Dubai Hills Estate.

Bayut’s data on Dubai transactions, meticulously processed from the Dubai Land Department (DLD), reveals that Q3 2024 recorded over 48,000 property sale transactions, totaling more than AED 120 billion. Within specific segments, over 16,000 transactions were for ready properties, valued at more than AED 51 billion, while the off-plan segment accounted for over 32,000 transactions, exceeding AED 70 billion in value.

Return on Investment (ROI) Trends for Dubai Properties

Dubai Investments Park (DIP), Discovery Gardens, and Liwan are leading the way in ROI for affordable apartments, boasting returns between 9% and 11%. In the mid-tier market, Dubai Sports City, Dubai Silicon Oasis, and Town Square offer attractive yields exceeding 8.6%. For luxury apartments, locations like Al Sufouh, DAMAC Hills, and the World Trade Centre deliver returns of 7% to 9%, outpacing many global markets.

For affordable villas, DAMAC Hills 2, International City, and Serena yield returns above 6%. Mid-tier villa communities, including Jumeirah Village Circle, Dubai Sports City, and Jumeirah Village Triangle, offer ROIs ranging from 6% to 9%. In the luxury segment, Al Barari and Tilal Al Ghaf yield returns exceeding 6%, while Jumeirah Golf Estates and Al Barari provide returns of up to 6%.

Trends in Renting Properties in Dubai

Bayut’s data shows notable increases in rental prices across various segments. Affordable apartment rentals have surged by up to 28%, with the most significant increase seen in 1-bedroom flats in Deira. Mid-tier apartment rentals rose by as much as 12%, while luxury apartments experienced moderate growth, with a maximum increase of 9%. However, 1 and 2-bedroom units in Business Bay and Dubai Marina recorded slight declines of under 4%.

In the budget segment, villa rentals generally increased by up to 10%, though 5-bedroom houses in popular districts saw declines of up to 11%. Mid-tier villa rentals soared by as much as 42%, particularly for 4-bedroom units in Al Furjan, following the completion of properties in Murooj Al Furjan. Luxury villa rentals jumped by up to 15%, with Jumeirah seeing the highest increase in its limited inventory of five-bedroom units.

Affordable rental options in Deira and International City are gaining popularity for apartments, while DAMAC Hills 2 and Mirdif are attracting interest for villas. Mid-tier apartments in Jumeirah Village Circle (JVC) and Bur Dubai remain in high demand, as do mid-tier villas in JVC and Al Furjan. For luxury rentals, Dubai Marina and Business Bay continue to be desirable for apartments, with Dubai Hills Estate and Al Barsha topping the list for high-end villas.

Overall, transactional rental prices for both villas and apartments in affordable areas have increased by 1% to 14%, while mid-tier and luxury segments have seen rental price hikes of up to 10%.