Affordable apartments in areas like Dubai Investments Park (DIP) and Discovery Gardens offered the highest yields .
Dubai’s Real Estate Market Reaches New Heights
Dubai’s property sector has achieved another remarkable milestone, setting a new record with 180,900 transactions totaling $142.1 billion. The city continues to experience a consistent rise in property prices across its sought-after neighborhoods, driven by strong demand and a steady influx of new properties.
The growth of Dubai’s real estate market is fueled by various factors, including investor-friendly government initiatives, a robust economy, and increasing interest from high-net-worth individuals worldwide. Additionally, the city’s focus on creating sustainable and technologically advanced developments has enhanced its global appeal.
With its high returns on investment (ROI) and a dynamic property market, Dubai stands out as one of the most attractive cities globally for real estate investments.
ROI Trends in 2024
A recent report by Bayut highlights key trends shaping Dubai’s property market in 2024. Affordable apartments in neighborhoods such as Dubai Investments Park (DIP), Discovery Gardens, and Liwan have delivered rental yields of 9–11%.
Mid-range communities like Living Legends, Motor City, and Al Furjan have recorded ROIs exceeding 8.7%. Luxury apartments in areas such as Al Sufouh, Green Community, and Al Barari have achieved rental returns of 7–9%.
For villas, areas like Dubai Industrial City, International City, and DAMAC Hills 2 lead the affordable segment with ROIs over 6%. Mid-tier villa communities, including Jumeirah Village Circle, Al Furjan, and Jumeirah Village Triangle, offered yields of 6–8%, while luxury villa areas like The Sustainable City, Al Barari, and Tilal Al Ghaf exceeded 6% in ROI.
Investor Preferences in 2024
Bayut’s data shows a notable increase in property prices across popular neighborhoods. For instance, villa prices in Arabian Ranches surged by up to 56%.
Affordable areas such as Dubai Silicon Oasis, Dubai Sports City, DAMAC Hills 2, and Dubailand attracted buyers looking for budget-friendly options. Mid-tier neighborhoods like Jumeirah Village Circle, Business Bay, Al Furjan, and The Springs gained traction among investors seeking mid-range properties.
In the luxury market, Dubai Marina, Downtown Dubai, Dubai Hills Estate, and DAMAC Hills emerged as top choices for high-net-worth buyers. The strong performance of off-plan developments, affordable housing options, and high-demand luxury properties has created exciting opportunities for both short-term and long-term investors.
With Dubai projected to house over 4 million expatriates by 2025, the demand for residential properties is expected to remain strong, further solidifying the city’s position as a prime destination for real estate investments.
Property Prices Witness a Surge
Dubai’s real estate market saw significant price increases last year. Affordable apartments in popular areas recorded price hikes of up to 26%, while villa prices more than doubled in some locations, with Dubailand seeing the most substantial rise due to demand for budget-friendly homes.
In the mid-range category, apartment and villa prices increased by 7–40%, with Jumeirah Lake Towers standing out as a hotspot due to its central location and premium offerings.
The luxury segment also showed consistent growth, with property prices climbing by 7–31%, led by developments in Dubai Hills Estate.
Rental Market Trends in 2024
Rising demand has driven up rental prices across all property segments. Affordable apartment rents increased by up to 48%, with 2-bedroom units in Deira showing the most significant rise.
Mid-range apartment rentals grew by as much as 41%, particularly in centrally located areas like JLT. Meanwhile, luxury apartment rentals surged by 5–25% across various neighborhoods.
For villas, affordable rentals increased by up to 44%, while mid-tier villa rentals rose by 45%, particularly for 4-bedroom units in Town Square. Upscale villa rentals saw a dramatic rise of up to 60%, with Jumeirah registering the highest demand for large 6-bedroom properties.
Popular areas for affordable rentals in 2024 included Deira and Bur Dubai for apartments and DAMAC Hills 2 and Mirdif for villas. In the mid-range segment, Jumeirah Village Circle (JVC) and Business Bay led apartment rentals, while JVC and Town Square were preferred for villas.
In the luxury category, Dubai Marina and Downtown Dubai remained popular for high-end apartments, while Dubai Hills Estate and Al Barsha topped the villa rental market.
Transactional rental prices in affordable areas increased by 5–19%, while mid-range and luxury rentals saw growth of up to 16%.
