• Villas: Popular communities like Arabian Ranches recorded up to 56% price increases, reflecting robust interest in premium suburban living.
• Affordable housing: Areas such as Dubai Silicon Oasis, Dubai Sports City, DAMAC Hills 2, and Dubailand attracted buyers seeking budget-friendly options. Dubailand also reported a notable spike in villa prices, with increases exceeding 100%.
• Mid-range properties: Communities like Jumeirah Village Circle (JVC), Business Bay, Al Furjan, and The Springs saw prices rise by 7% to 40%, driven by strong demand for well-located homes.
• Luxury properties: High-end neighbourhoods such as Dubai Marina, Downtown Dubai, Dubai Hills Estate, and Palm Jumeirah continue to dominate the luxury segment. However, apartments in Palm Jumeirah saw a slight decline in transactional prices, down by 8.4%, according to Dubai Land Department (DLD) data.

Sales transactions in 2024

Dubai’s property market saw over 169,000 transactions valued at AED 488 billion as of December 10, 2024. The ready property segment accounted for more than 67,000 transactions worth AED 274 billion, while the off-plan market witnessed over 102,000 transactions worth AED 213 billion.

High rental yields for investors

Bayut’s findings emphasise Dubai’s strong return on investment (ROI) potential:

• Affordable apartments: Communities like Dubai Investments Park (DIP), Discovery Gardens, and Liwan delivered rental yields of 9% to 11%.
• Mid-tier properties: Areas such as Living Legends, Motor City, and Al Furjan offered ROIs above 8.7%.
• Luxury apartments: Neighbourhoods like Al Sufouh, Green Community, and Al Barari achieved rental yields between 7% and 9%.
• Villas: Affordable villa communities, including DAMAC Hills 2 and International City, reported ROIs above 6%. Mid-range areas like JVC and Al Furjan offered returns between 6% and 8%, while luxury villa communities such as The Sustainable City and Tilal Al Ghaf exceeded 6%.

Renting trends

Rental markets across Dubai have experienced significant growth in 2024:

• Affordable rentals: Apartment rents rose by up to 48%, with the highest increases recorded for two-bedroom flats in Deira.
• Mid-tier rentals: Rental rates for mid-tier apartments climbed up to 41%, especially in Jumeirah Lake Towers (JLT), reflecting a preference for central locations.
• Luxury rentals: Upscale villa rentals surged by as much as 60%, with Jumeirah reporting the highest demand for larger six-bedroom homes.

Popular neighbourhoods for affordable rentals included Deira and Bur Dubai for apartments, and DAMAC Hills 2 and Mirdif for villas. Meanwhile, JVC, Business Bay, and Town Square dominated the mid-tier market, and Dubai Marina and Downtown Dubai remained favourites for luxury apartments.

Dubai’s strategic growth fuels real estate momentum

The city’s growing appeal stems from favourable government policies, a booming economy, and a focus on sustainability and innovation in real estate development. These factors continue to attract global interest, positioning Dubai as a premier destination for diverse real estate investments.

Haider Ali Khan, CEO of Bayut and Head of Dubizzle Group MENA, said, “Dubai’s real estate market is buzzing right now and it’s easy to see why. Luxury properties in Palm Jumeirah and Dubai Hills Estate are breaking records while emerging areas like Dubai South and Dubai Creek Harbour are gaining traction due to improved infrastructure and strategic locations.”

With over 4 million expats projected to reside in Dubai by 2025, the city’s real estate market is set to thrive, offering lucrative opportunities for investors and developers alike.

The Article is originally Published on: https://www.constructionweekonline.com/analysis/dubai-real-estate-high-yields-and-strong-growth-attract-investors-in-2024